Question: I just need help with these 2, please ! Thank you so much. AHC= $9,187 AOC= $12,350 TC= $1,386,537 The store must decide how often

I just need help with these 2, please ! Thank you so much.I just need help with these 2, please ! Thank you so

much. AHC= $9,187 AOC= $12,350 TC= $1,386,537 The store must decide howoften they want to order. Remember, the weekly demand is 150 units.

AHC= $9,187

AOC= $12,350

TC= $1,386,537

The store must decide how often they want to order. Remember, the weekly demand is 150 units.

If they order weekly, the store will require at minimum 200 units per week. If they order every other week, the store will require at minimum 300 units to get to the next ordering period.

The total annual savings for this store using our recommendation (Q) versus the present lot size of 900 , would be: $22,126 $17,658 $15,908 $18,122 $18,351 $10,142 $20,175 $15,455 $12,300 $22,150 $19,429 Without store-by-store information it is difficult to say how much this would save the corporation. Nonetheless, using only the numbers for this store it can be said that if the numbers for the other 14 stores are similar there is a potential to save a total of about...Remember, there are 15 stores, total! $272,001 $238,620 $331,890 $383,340 $184,500 $152,125 $264,875 $141.980 $332,250 $231,825 $275,265 Economic Order Quantity Exercise (30 Points) SCM 300 Buckshot Electronics is a chain of electronics superstores that is located throughout California. They have 15 locations concentrated primarily in heavily populated areas. They sell thousands of products made by hundreds of different manufacturers. Buckshot sells everything from phones, video cameras, and video game consoles to large items like televisions. Sony is one of their larger suppliers. They offer products in nearly every category Buckshot offers to its customers. In fact, Sony sells multiple cell phone models through Buckshot. One such model is the Q9900. One of Buckshot's San Francisco stores is forecasted to sell about 7800 units of the Q9900 in the coming year. This forecasted demand is about average in terms of Buckshot's 15 other California locations. Presently they order 900 units of the Q9900 every 6 weeks. Each store fills weekly orders through its Sony Distributor for items like TV's, cameras, and of course, cell phones, in addition to many other items. Orders for cell phones must be made in increments of 100 units. The distributor takes only one order per week, but Buckshot is not obligated to order every item every week. That order is then shipped 2 days later to that individual Buckshot Electronics location by truck. Buckshot's Central Procurement is looking to save money by investigating order sizes and subsequent order frequency. You are being asked to create a recommendation for order size and time between orders for the Q9900 based on the numbers for this San Francisco location. Answer the questions that follow in order to create a detailed report for your supervisor. Annual Per Unit Holding Costs are estimated at 35\% of the wholesale cost of the Q9900. C

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!