UC is catering an event on campus in TUC - that last time they did this they ran out of plasticsilverware! We want to make sure we have enough and are looking at quantity discounts. Toorder less than 2,000 the vendor quotes $1.80 per piece. Orders between 2001 to 5,000 are$1.60 per piece and 5,001-10,000 it's $1.40. Any orders above 10,000 the price drops to$1.25. Ordering costs are $200 per order and to store the materials we have a 5% storagecosts from UC catering. Our estimated annual demand is 15,000 pieces.What is the optimal Order Qty?8,6608,1659,259O9,798

The economic order quantity is the concept of inventory management and it helps in determining the…

Answered: UC is catering an event on campus in…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The management of two different sized sachets of maize meal—5 kg and 3 kg—is entrusted to you. The larger sachet is priced at R45 and the smaller one is R30, according to Shoprite your primary supplier. Currently, the promotion for the smaller packet says, "Buy ONE get the second HALF PRICE!" 2.1 Propose which size of Sugar currently gives you the best value for money.
The management of two different-sized sachets of maize meal—5 kg and 3 kg—is entrusted to you. The larger sachet is priced at R45 and the smaller one is R30, according to Shoprite your primary supplier. Currently, the promotion for the smaller packet says, "Buy ONE get the second HALF PRICE!" Calculate which size of Sugar currently gives you the best value for money.
Your widget factory requires GWium for polishing. GWium is expensive but worth it and a little goes a long way. Each widget requires 0.1 ounces of GWium to produce. Your supply contract enables you to buy 10,000 ounces of GWium per day for $30/ounce. This is a good deal; the market price is $40/ounce. Total cost of other materials and labor (excluding GWium) is $2.25/widget. You sell to a wholesaler, who buys all widgets you produce at a non-negotiable price of $6.25/widget. Which of the following are true. A. Selling the widgets is a much better course of action than selling the GWium B. Selling the GWium on the open market is a much better course of action than making the widgets O C. You could produce 100,000 widgets per day D. Both A and B E. Both B and C
The management of two different-sized sachets of maize meal—5 kg and 3 kg—is entrusted to you. The larger sachet is priced at R45 and the smaller one is R30, according to Shoprite your primary supplier. Currently, the promotion for the smaller packet says, "Buy ONE get the second HALF PRICE!" Propose which size of Sugar currently gives you the best value for money.what is the annual demand of Maize Meal = 750 units (bigger size), Delivered purchase cost = R35/units, Annual carrying cost percentage= 25 percent, Order cost = R50/order. The lead time is 10 working days. Assuming 20 working days per month. Determine the Economic Order QuantityDetermine the reorder pointDetermine the average inventorySuppose orders are placed only at review time. what is the optimal period and the optimal order quantity.
March sales are $100,000 and cost of goods sold is $65,000. What is the entry to Finished Goods Inventory? $65,000 debit $65,000 credit $35,000 debit $100,000 credit
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Whole Nature Foods sells a gluten-free product for which theannual demand is 5,000 boxes. At the moment, it is paying $6.40 for each box; carrying cost is 25% of the unit cost; order-ing costs are $25. A new supplier has offered to sell the same item for $6.00 if Whole Nature Foods buys at least 3,000 boxesper order. Should the firm stick with the old supplier, or takeadvantage of the new quantity discount?
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