Costs and Location Essay

1 . A car rental agency uses ninety six boxes of staples a year. The containers cost $4 each. That costs $10,50 to order staples, and carrying costs are $0. 80 every box with an annual basis. Determine:

(A) the purchase quantity which will minimize the sum of ordering and holding packing containers of worn (B) the annual expense of ordering and carrying the boxes of staplesВ

2 .. A service garage uses one hundred twenty boxes of cleaning cloths 12 months. The boxes cost $6 each. Buying cost is $3 and possessing cost is 10 percent of buy cost every unit with an annual basis. Determine:

(A) The economic order volume

(B) The total cost of transporting the towels (excluding obtain price) (C) The average inventoryВ

3.. A store that makes candle lights offers a scented candle light, which has a month to month demand of 360 containers. Candles could be produced for a price of thirty-six boxes every day. The shop operates twenty days a month. Assume that require is uniform throughout the month. Setup expense is $60 for the run, and holding value is $2 per box on a monthly basis. Determine the subsequent:

(A) the economic work size

(B) the maximum products on hand

(C) the quantity of days within a runВ

5. Estimated demand for gold-filled lockets at Sam's Bargain Jewelry and Housewares is a couple of, 420 lockets a year. Administrator Veronica Winters has suggested that purchasing cost is $45, and that the next price schedule applies: one particular to 599 lockets, $. 90 every; 600 to 1, 199 lockets, $. 70 each; and 1, two hundred or more, bucks. 75 every. What purchase size will certainly minimize total cost if carrying value is $. 18 per locket on an twelve-monthly basis? В

5. Guess that you are definitely the manager of a production department that uses 400 containers of cheville per year. The supplier rates you an amount of $8. 50 per box intended for an order size of 199 boxes or less, a cost of $8. 00 every box for orders of 200 to 999 bins, and a price of $7. 50 per box pertaining to an order of 1, 000 or more boxes. You give a keeping cost of 20% of the price to this products on hand. What order quantity might you use in case the objective is usually to minimize total annual costs of...

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