Sturdivant Sound Systems

Case: Sturdivant Sound Systems (1) The top hat roll quantity is (see instrument P12-Sturdivant, sheet #1) is 183 unit of measurements. (2). The place arcdegree is (20)(10) = 200 units, meaning they atomic amount 18 actually governing 1 cycle in surface when there argon 17 units in hand. (3) fundamental one-year price at a lower place symbolize system with an decree of magnitude study aim of 400 units is (see register P12-Sturdivant, sheet #2): Cost of equipment = (5,000 units)($60) = $300,000 procural greet = ($20 per order)(12.5 orders) = 250 Carrying greets = [(400/2) units]($6/unit) = 1,200 intact = $301,450 Total annual make up per optimal procural policy is = (5,000)(60) + (5,000/183)(20) + (0.5)(183)(6) = $301,095.45. Cost nest egg = $301,450 - $301,095.45 = $354.55. (4) The typical comprise associated with procurement of materials include cost of preparing requisitions, composition corrupt orders, receiving merchandise, inspecting goods, storage, modify inventory records, and so on. These cost are usually fixed, no matter of the size of the order. While a intumescent order may wait more time, the increase in procurement costs is minimal. As sens size increases, the numeral of orders decreases (assuming a constant necessary level). Consequently, procurement costs head decrease with increases in lot sizes. | Sturdivant Sound Systems | 1.Compute the optimal order quantity.

First, tally the cost under the present policy: compute 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| | place cost: $20/order 13 orders| =| 260| | Carrying cost: | =| 1154| | Total cost | | $301,414| Next, develop an scotch Order Quantity, and determine the entire costs: or 183 units where: D = period demand, S = setup or order cost, H = holding cost 2.Determine the conquer reorder point (in units). reorder point = demand during lead...If you motive to get a effective essay, order it on our website: Orderessay

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