Problem 20-39 (Algo)CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, tomeet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and otherdata for the problem:Price of copper0.80 per pound up to 2,499 pounds0.79 per pound for orders between 2,500 and 4,999 pounds%240.77 per pound for orders 5,000 pounds or greater51,000 pounds per year30 percent per unit per year of the price of the copperAnnual demandHolding costOrdering cost30Which quantity should be ordered?Quantitypounds

Economic order quantity is the optimal quantity of products or resources that the company should buy…

Answered: Which quantity should be ordered?…

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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how does purchasing help in reducing order cycle to achieve effieciency?
Here it’s the answers I just need an explanation of how did you get that number.
If economic order quantity is 2,500 units and consumption in units for one year are 15,000 units, then number of orders in a year will be: a. 10 orders b. 5 orders c. 12 orders d. 6 orders
1. (EOQ)The Wallace Stationary Company purchases paper from the Seaboard Paper Company. Wallace produces stationary that require 1,415,000 sq. yards of stationary per year. The cost per order for the company is $2,200; the cost of holding 1 yard of paper in inventory is $0.08 per year. Determine the following: a. Economic order quantity (please show your work) B. Minimum total annual cost c. Optimal number of orders per year d. Optimal time between orders
If no safety stock is required, what would the re-order point be?
Define total ordering cost (TOC)
Question 7 Firm develop new products to a.gain market share and build brand equity b.keep their research and development teams gainfully employed c.take up slack in capacity d.gain first mover advantage and eliminate waste Question 8 Economic order quantity (EOQ) assumes all of the following conditions apply .demand is known and is constant over time .there are no shortages allowed.lead time for the receipt of orders is constant.Order quantity is received all at once true or false? question 10 Trade-offs in the new product development relate to A.Product / service design, time to market and profitability B.Proft. Expenditure and market share C.Time. cost and quality D.Market reach, product / service design and timing
3. a) Calculate the Lot size for Zara production clothes. D d р Q H S = = 11 Annual demand = 400,000 units Daily demand = 400,000/250= 1,600 per day Daily production rate = 4,000 units EOQ desired = 400 = Holding cost $20 per unit Setup cost (to be determined) = b) Determine optimal number of needles to order. D = 1,000 units S = $10 per order H = $.50 per unit per year c) Determine expected number of orders. d) Determine the total annual cost.
The units of Manganese Plus available for sale during the year were as follows: Mar. 1 June 16 Nov. 28 Inventory Purchase Purchase 23 units @ $29 32 units @ $30 42 units @ $36 97 units $667 960 1,512 $3,139 There are 14 units of the product in the physical inventory at November 30. The periodic inventory system is used. a. Determine the inventory cost by the FIFO method. $ b. Determine the inventory cost by the LIFO method. $ c. Determine the inventory cost by the weighted average cost methods. Round intermediate calculations and final answer to two decimal places.

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Which quantity should be ordered? Quantity pounds