bsop 434 week 1 lab assignment n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
BSOP 434 WEEK 1 LAB ASSIGNMENT PowerPoint Presentation
Download Presentation
BSOP 434 WEEK 1 LAB ASSIGNMENT

Loading in 2 Seconds...

play fullscreen
1 / 2

BSOP 434 WEEK 1 LAB ASSIGNMENT - PowerPoint PPT Presentation


  • 0 Views
  • Uploaded on

\nVisit Below Link, To Download This Course:\n\nhttps://www.tutorialsservice.net/product/bsop-434-week-1-lab-assignment/\n\nOr \nEmail us on\nSUPPORT@TUTORIALSSERVICE.NET\n\nBSOP 434 WEEK 1 LAB ASSIGNMENT\nLab Assignment:\n1. After making some wise short-term investments at a race track, Chris Low had some additional cash to invest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 kegs, and they were sold to retail customers in an even flow. Low was uncertain of how many nails to order at any time. Initially, only two costs concerned him: order-processing costs, which were $60 per order without regard to size, and warehousing costs, which were $1 per year per keg space. On average, the rented warehouse space is only half full. This meant that Low had to rent a constant amount of warehouse space for the year, and it had to be large enough to accommodate an entire order when it arrived. Low was not worried about maintaining safety stocks, mainly because the outward flow of goods was so even. Low bought his nails on a delivered basis.\n

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'BSOP 434 WEEK 1 LAB ASSIGNMENT' - tutorialsservicesnet


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
bsop 434 week 1 lab assignment

BSOP 434 WEEK 1 LAB ASSIGNMENT

Visit Below Link, To Download This Course:

https://www.tutorialsservice.net/product/bsop-434-week-1-lab-assignment/

Or

Email us on

SUPPORT@TUTORIALSSERVICE.NET

BSOP 434 WEEK 1 LAB ASSIGNMENT

Lab Assignment:

1. After making some wise short-term investments at a race track, Chris Low had some additional cash to

invest in a business. The most promising opportunity at the time was in building supplies, so Low bought

a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 kegs, and

they were sold to retail customers in an even flow. Low was uncertain of how many nails to order at any

time. Initially, only two costs concerned him: order-processing costs, which were $60 per order without

regard to size, and warehousing costs, which were $1 per year per keg space. On average, the rented

warehouse space is only half full. This meant that Low had to rent a constant amount of warehouse space

for the year, and it had to be large enough to accommodate an entire order when it arrived. Low was not

worried about maintaining safety stocks, mainly because the outward flow of goods was so even. Low

bought his nails on a delivered basis.

Question 1: Using the EOQ methods outlined in Chapter 9, determine how many kegs of nails Low should

order at one time.

Step 2: Low-Quantity Discount

Question 2: Assume that all conditions in Question 1 hold, except that Low’s supplier now offers a

quantity discount in the form of absorbing all or part of Low’s order-processing costs. For orders of 750 or

more kegs of nails, the supplier will absorb all order-processing costs; for orders between 249 and 749

kegs, the supplier will absorb half. What is Low’s new EOQ? (It might be useful to lay out all costs in

tabular form for this and later questions.)

Step 3: Low Rent

question 3 temporarily ignore your work

Question 3: Temporarily ignore your work on Question 2. Assume that Low’s warehouse offers to rent

Low space on the basis of the average number of kegs that Low will have in stock, rather than on the

maximum number of kegs that Low would need room for whenever a new shipment arrived. The storage

charge per keg remains the same. Does this change the answer to Question 1? If so, what is the new

answer?

Step 4: New EOQ

Question 4: Take into account the answer to Question 1 and the supplier’s new policy outlined in

Question 2, and the warehouse’s new policy in Question 3. Then determine Low’s new EOQ.

Step 5: Financing Inventory

Question 5: Temporarily ignore your work on Questions 2, 3, and 4. Low’s luck at the race track is over;

he now must borrow money to finance his inventory of nails. Looking at the situation outlined in Question

1, assume that the wholesale cost of nails is $40 per keg and that Low must pay interest at the rate of

1.5% per month on unsold inventory. What is his new EOQ?

Step 6: Final EOQ

Question 6: Taking into account all of the factors listed in Questions 1, 2, 3, and 5, calculate Low’s EOQ

for kegs of nails.

Download Now