EBK PRINCIPLES OF OPERATIONS MANAGEMENT
10th Edition
ISBN: 8220102744059
Author: HEIZER
Publisher: PEARSON
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Chapter 12, Problem 27P
Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the accompanying table. Annual usage is 2,400 valves; order cost is $10 per order; and annual inventory holding costs are $3.33 per unit.
Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost?
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Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 800 valves; order cost is $7 per order; and annual inventory holding costs are $2.15
per unit.
D
Vendor A
units at a time from
Vendor C
Vendor B
Quantity
1-14
15-24
25-99
100-199
200-399
400+
Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost?
Chris Sandvig Irrigation should order
(enter your response as a whole number).
Vendor A
Price
$35.00
34.75
33.55
32.35
31.15
30.75
Vendor D
Vendor B
Quantity
1-24
25-99
100-199
200-399
400+
Price
$34.75
34.00
32.80
31.60
30.50
Vendor C
Quantity
1-49
50-149
150-299
300+
Price
$34.50
33.75
32.50
31.10
Vendor D
Quantity
1-149
150-299
300+
Price
$34.25
33.00
31.00
Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 1,100 valves; order cost is $10 per order; and annual inventory
holding costs are $7.55 per unit.
D
D
Vendor A
Quantity
1-14
15-24
25-99
100-199
200-399
400+
Price
$35.00
34.75
33.55
32.35
31.15
30.75
Vendor C
Vendor D
Vendor A
D
Vendor B
Vendor B
Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost?
Chris Sandvig Irrigation should order
units at a time from
(enter your response as a whole number).
Quantity
1-24
25-99
100-199
200-399
400+
Price
$34.75
34.00
32.80
31.60
30.50
MacBook Air
O
Vendor C
Quantity
1-49
50-149
150-299
300+
Price
$34.50
33.75
32.50
31.10
Vendor D
Quantity
1-149
150-299
300+
Price
$34.25
33.00
31.00
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Chris Sandvig Irrigation, Inc., has summarized theprice list from four potential suppliers of an underground controlvalve. See the accompanying table on the next page. Annual usageis 2,400 valves; order cost is $10 per order; and annual inventory holding costs are $3 .33 per unit.Which vendor should be selected and what order quantity isbest if Sandvig Irrigation wants to minimize total cost?
Chapter 12 Solutions
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
Ch. 12 - Ethical Dilemma Wayne Hills Hospital in tiny...Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - What is the purpose of the ABC classification...Ch. 12 - Prob. 4DQCh. 12 - Explain the major assumptions of the basic EOQ...Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - What impact does a decrease in setup time hive on...
Ch. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Explain the following: All things being equal, the...Ch. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - When demand is not constant, the reorder point is...Ch. 12 - Prob. 17DQCh. 12 - State a major advantage, and a major disadvantage,...Ch. 12 - L. Houts Plastics it a large manufacturer of...Ch. 12 - Prob. 2PCh. 12 - Jean-Mane Bourjollys restaurant has the following...Ch. 12 - Lindsay Electronics, a small manufacturer of...Ch. 12 - William Sevilles computer training school, in...Ch. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Matthew Liotines Dream Store sells beds and...Ch. 12 - Southeastern Bell stocks a certain switch...Ch. 12 - Lead time for one of your fastest-moving products...Ch. 12 - Annual demand for the notebook binders at Duncans...Ch. 12 - Thomas Kratzer is the purchasing manager for the...Ch. 12 - Joe Henrys machine shop uses 2,500 brackets during...Ch. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Cesar Rego Computers, a Mississippi chain of...Ch. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - M. P. VanOyen Manufacturing has gone out on bid...Ch. 12 - Chris Sandvig Irrigation, Inc., has summarized the...Ch. 12 - Prob. 28PCh. 12 - Prob. 29PCh. 12 - Prob. 30PCh. 12 - Barbara Flynn is in charge of maintaining hospital...Ch. 12 - Prob. 42PCh. 12 - Authentic Thai rattan chairs (shown in the photo)...Ch. 12 - Prob. 44PCh. 12 - Prob. 45PCh. 12 - Prob. 46PCh. 12 - Prob. 47PCh. 12 - Gainesville Cigar stocks Cuban agars that have...Ch. 12 - A gourmet coffee shop in downtown San Francisco is...Ch. 12 - Prob. 51PCh. 12 - Henrique Correas bakery prepares all its cakes...Ch. 12 - Prob. 53PCh. 12 - Prob. 1.1CSCh. 12 - Prob. 1.2CSCh. 12 - Prob. 1.3CSCh. 12 - Prob. 2.1CSCh. 12 - Prob. 2.2CSCh. 12 - Prob. 2.3CSCh. 12 - Managing Inventory at Frito-Lay Frito-Lay hat...Ch. 12 - Prob. 1.2VCCh. 12 - Prob. 1.3VCCh. 12 - Prob. 1.4VCCh. 12 - Prob. 1.5VCCh. 12 - Prob. 1.6VCCh. 12 - Managing Inventory at Frito-Lay Frito-Lay hat...Ch. 12 - Inventory Control at Wheeled Coach Controlling...Ch. 12 - Prob. 2.2VCCh. 12 - Inventory Control at Wheeled Coach Controlling...
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