operations mangement help

Oct 26th, 2014
Anonymous
Category:
Accounting
Price: $55 USD

Question description

As the production manager, you need to minimize both ordering and inventory costs. You need to provide a recommendation of the optimal order quantity of raw materials to your plant manager. Your objective is to determine the economic order quantity (EOQ). If the annual demand for Ultamyacin at Smitheford is 400,000 units, then the annual carrying cost rate is 15% of the cost of the unit. The product costs $48/unit to purchase, and the product ordering cost is $28.00.In your report, discuss information based on the following questions:What is the basic EOQ?What is the TC (total cost) at the EOQ?How much would the TC increase if the order quantity must be 1,000 units?How is JIT (just-in-time) ordering methodology different from EOQ methodology?Show all your calculations.


750_1000 words

Tutor Answer

(Top Tutor) Studypool Tutor
School: University of Virginia
PREMIUM TUTOR

Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors