11th Edition

ISBN: 9780132921145

Author: Jay Heizer

Publisher: PEARSON

Concept explainers

The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project get…

Cost Analysis

The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer …

Inventory Management

Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.

Project Management

Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective…

Videos

Textbook Question

Chapter 12, Problem 8P

Matthew Liotine’s Dream Store sells beds and assorted supplies. His best-selling bed has an annual demand of 400 units. Ordering cost is $40; holding cost is $5 per unit per year.

a. To minimize the total cost, how many units should be ordered each time an order is placed?
b. If the holding cost per unit was $6 instead of $5, what would be the optimal order quantity?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 12, Problem 7P

Chapter 12, Problem 9P

Students have asked these similar questions

Suppose that R&B Company has a soft drink product that shows a constant annual demand rate of 3600 cases. Ordering costs are $20 per order and holding costs are $0.77. Find the EOQ. Round to two decimal places. __________________ Find the order cost using the EOQ as the quantity. Round to two decimal places. _________________

Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 400 units. Ordering cost is $38;holding cost is $5 per unit per year. a) To minimize the total cost, how many units should be ordered each time an order is placed? EOQ = enter your response here units (round your response to the nearest whole number). b) If the holding cost per unit was $6.00 instead of $5, what would the optimal order quantity be? New EOQ = enter your response here units (round your response to the nearest whole number).

Energyzer , a regional electronics retailer , estimates that sells 13 , 000 4-packs of batteries per year (or 250 per week). Each 4-pack of batteries costs the retailer $2.00; with a carrying cost rate of 32%; and ordering costs of $40.00 per order. a. Calculate the optimum order period—in terms of weeks , b. Calculate the economic order quantity PLEASE SHOW WORK

Chapter 12 Solutions

Operations Management

Ch. 12 - Question 1. Describe the four types of inventory.Ch. 12 - Question 2. With the advent of low-cost...Ch. 12 - Question 3. What is the purpose of the ABC...Ch. 12 - Question 4. Identify and explain the types of...Ch. 12 - Question 5. Explain the major assumptions of the...Ch. 12 - Question 6. What is the relationship of the...Ch. 12 - Question 7. Explain why it is not necessary to...Ch. 12 - Question 8. What are the advantages of cycle...Ch. 12 - What impact does a decrease in setup time have on...Ch. 12 - When quantity discounts are offered, why is it not...

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.

Solution Summary: The author explains how to calculate the order quantity (EOQ) when the holding cost is altered.

Concept explainers

Videos

Want to see the full answer?

Chapter 12 Solutions