Sturdivant Sound Systems

Case: Sturdivant Sound Systems (1) The outflank roll quantity is (see wedge away P12-Sturdivant, sheet #1) is 183 unit of measurements. (2). The regularize arcdegree is (20)(10) = 200 units, heart and soul they atomic amount 18 actually influenceing superstar cycle in come forward when there argon 17 units in hand. (3) list one-year price below ease up system with an array reduce aim of 400 units is (see file P12-Sturdivant, sheet #2): Cost of equipment = (5,000 units)($60) = $300,000 procurance greet = ($20 per order)(12.5 orders) = 250 Carrying greets = [(400/2) units]($6/unit) = 1,200 congeries = $301,450 Total yearly exist per optimal procurance policy is = (5,000)(60) + (5,000/183)(20) + (0.5)(183)(6) = $301,095.45. Cost populate egg = $301,450 - $301,095.45 = $354.55. (4) The typical make up associated with procurement of materials include be of preparing requisitions, composition barter for orders, receiving merchandise, inspecting goods, storage, update inventory records, and so on. These cost are usually fixed, regardless of the size of the order. While a intumescent order may engage more time, the increase in procurement costs is minimal. As pile size increases, the add of orders decreases (assuming a constant requisite level). Consequently, procurement costs resolve decrease with increases in lot sizes. | Sturdivant Sound Systems | 1.Compute the optimal order quantity.

First, tally the cost under the present policy: upshot of orders/year orders Average order size or 385 units Total cost = order cost + holding cost + purchase cost | Purchase cost: 5000 units 60/unit| =| 300,000| | give cost: $20/order 13 orders| =| 260| | Carrying cost: | =| 1154| | Total cost | | $301,414| Next, develop an economic Order Quantity, and determine the native costs: or 183 units where: D = period demand, S = frame-up or order cost, H = holding cost 2.Determine the distinguish reorder point (in units). grade point = demand during lead...If you call for to get a broad(a) essay, order it on our website: Ordercustompaper.com

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