Question: Please write a clear and straight to the point answer. Thank you Questions 1-6 are based on the following case Littlefield Laboratories, LLC (LL) provides

Please write a clear and straight to the point answer. Thank you Please write a clear and straight to the point
Please write a clear and straight to the point
Questions 1-6 are based on the following case Littlefield Laboratories, LLC (LL) provides an integrated genetic test called Maternit 21 PLUS for expected parents in Northern California. LL charges its customers a premium price of $1,900 per test and promises to return the result within 24 hours after receiving the order; otherwise a rebate will be provided. LL runs 24x7 and customer orders for the test come in to the lab with blood samples on a continuous basis. Demand for the test is relatively stable at an average of 3,000 tests per month, with an estimated standard deviation of 100 tests for the weekly demand. Each test requires an advanced testing kit that can be purchased from a sole supplier at a wholesale price of $600 each. LL can purchase the testing kits from the supplier in a batch. The supplier charges a fixed setup cost (including shipping) of $6,000 for each batch LL orders, regardless of the size of the batch. It will take exactly 7 days for the supplier to deliver the batch to LL after LL places the order. If LL runs out of inventory for less than a week, the backlog cost is estimated to be $156 per unit. As soon as the batch is delivered, LL pays the supplier out of is operational cash account, which generates interest for LL on a compound annual growth rate (CAGR) of 8%. Test kits are very small parts that do not require any physical resources (e.g., extra space or climate control) to hold. 3. LL plans to use the EOQ model to make some of its inventory decisions. Which of the following hypotheses, if true, will make the EOQ method invalid? (Select all that apply.) The incoming demand is relatively stable at a constant rate that can be easily estimated. The supplier can offer discounts on the fixed setup charge based on ordering quantities, e.g., 50% off if the batch size is larger than 10,000 units. The supplier can offer discounts on the per unit wholesale price based on ordering quantities, e.g., 10% off if the batch size is larger than 5,000 units. LL's operational cash is put into an actively managed account with a systematic withdrawal plan that allows LL to withdraw a flexible amount of fund only on the first of each month to pay employees and bills and make necessary procurements. The supplier's setup charge and wholesale price are constants. CNC

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