a) For what value of ordering cost would its action be optimal? Its action would be optimal given an ordering cost of $ per order (round your response to two decimal places).
a) For what value of ordering cost would its action be optimal? Its action would be optimal given an ordering cost of $ per order (round your response to two decimal places).
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...
Related questions
Question
Question 1, Problem 12
![b) If the true ordering cost turns out to be much less than your answer to part (a), what is the impact on the firm's
ordering policy?
O A. The order quantity should be decreased.
B. The order quantity should not be changed.
C. The order quantity should be increased.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60ae2238-d375-4701-9aec-2226c586eada%2F8f9fbbf4-3752-489e-a299-6e0ffc45826b%2Fprk5h7h_processed.png&w=3840&q=75)
Transcribed Image Text:b) If the true ordering cost turns out to be much less than your answer to part (a), what is the impact on the firm's
ordering policy?
O A. The order quantity should be decreased.
B. The order quantity should not be changed.
C. The order quantity should be increased.
![Henry Crouch's law office has traditionally ordered ink refills 70 units at a time. The firm estimates that carrying cost is 35% of the $12 unit cost and that annual demand is about 240 units
per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?
a) For what value of ordering cost would its action be optimal?
Its action would be optimal given an ordering cost of $ per order (round your response to two decimal places).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60ae2238-d375-4701-9aec-2226c586eada%2F8f9fbbf4-3752-489e-a299-6e0ffc45826b%2F30vj4rb_processed.png&w=3840&q=75)
Transcribed Image Text:Henry Crouch's law office has traditionally ordered ink refills 70 units at a time. The firm estimates that carrying cost is 35% of the $12 unit cost and that annual demand is about 240 units
per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?
a) For what value of ordering cost would its action be optimal?
Its action would be optimal given an ordering cost of $ per order (round your response to two decimal places).
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
![Business in Action](https://www.bartleby.com/isbn_cover_images/9780135198100/9780135198100_smallCoverImage.gif)
![Purchasing and Supply Chain Management](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
![Production and Operations Analysis, Seventh Editi…](https://www.bartleby.com/isbn_cover_images/9781478623069/9781478623069_smallCoverImage.gif)
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.