Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 18,000. The annual holding cost per unit is $2.30, and the cost to place an order is $50.
a. What is the economic order quantity EOQ? (Complete the following and calculate the EOQ)
Q = order quantity =
H = annual holding cost per unit =
D = annual demand =
S = ordering cost =
-Suppose demand for TricoFlexers doubles, to 36,000. Does the EOQ also double? Explain what happens. -The manufacturer of TricoFlexers has agreed to offer Pam a price discount of $5 per unit ($45 rather than $50) if she buys 1,500. Assuming that annual demand is still 18,000, (use the Quantity Discounts – Price reductions for ordering larger quantities.)
What is the total annual savings if she buys 1500 instead of the recommended EOQ calculated on question a above ?
Two inputs to the Plan Procurement Management process are the Project Scope Statementand the Work Breakdown Structure (WBS). Select either input and briefly discuss how that input affects the plan procurement management process and ultimate project procurement plan. https://opentextbc.ca/projectmanagement/chapter/chapter-13-procurement-management-project-management/
August 27, 2020
4:17 pm
Read More »
