The supplier offers the Krewe of Orpheus a deal; if they will buy at least 50,001 at a time, they will pay only 4 cents each, and if they buy at least 100,001 at a time, they will pay only 3 cents each. What is the optimal order quantity?
The Krewe of Orpheus maintains a supply of swizzle sticks for events throughout the year. Demand for swizzle sticks is shockingly low, a quick check of krewe records from last year reveals that they used only 585,000, but the krewe president believes that they should be good stewards of what they have, so they seek to manage this inventory using the EOQ policy, although they prefer to refer to it as an EOKrewe policy for obvious reasons. Swizzle sticks are not expensive items, they cost a nickel apiece largely due to the club logo printed on each one. This also serves to increase the lead time as they can't be obtained from a standard restaurant supply house. Instead, they must be ordered with an eye towards the six day lead time. It costs $15 to place an order, most of this cost is a result of explaining the meaning of "Laissez les bons temps rouler" and why it should be printed on the edge of each swizzle stick. Holding cost is 20% of purchase price.
A) 41,892
B) 46,837
C) 50,001
D) 100,001
Answer: D
You might also like to view...
______ kind of feedback enhances behavior in progress and serves as a reinforcing function, causing us to continue our behavior.
A. Negative B. Positive C. Internal D. External
A key distinction between a risk response and a contingency plan is
A. A risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails. B. A risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan. C. A risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning. D. A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired. E. A risk response is established only for moderate risks while contingency plans are established for major risks.
Text messaging cannot be used for business purposes as it is strictly a social communication tool
Indicate whether the statement is true or false
The law will carefully scrutinize contracts between Pete, a trustee, and Mason, a beneficiary of the trust, to make sure there was no undue influence by Pete
a. True b. False Indicate whether the statement is true or false