Wednesday
April 23, 2014

Homework Help: quantitative methods for business

Posted by trai on Friday, July 19, 2013 at 7:14pm.

A manager of an inventory system believes that inventory models are important
decision-making aids. Even though often using an EOQ policy, the manager never considered a backorder model because of the assumption that back orderes were “bad” and should be a avoided. However, with upper management’s continued pressure for cost reduction, you have been asked to analyze the economics of a backorder policy for some products that can possibly be backordered. For a specific product with D = 800 units per year, Co = $150, Ch = #3, and Cb = $20, what is the difference in total annual cost between the EOQ model and the planned shortage or backorder model? If the manager adds constraints that no more than 25% of the units can be backordered and that no customer will have to wait more than 15 days for an order, should the backorder inventory policy be adopted? Assume 250 working days per year.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Quantitative Methods - The reorder point [see equation 14.6] is defined as the ...
Business - In simple terms describe and explain the differences between ...
Quantitative Analysis - To make meaningful causal inferences when conducting ...
ICT - 1) Name three methods of implementing a new system. 2)After the system is ...
business accounting - Lakie uses a perpetual inventory system. Ending inventory ...
accounting - Schumacher Company uses the perpetual inventory system, and it ...
math - Imagine that you're the manager of the Candle Shop. Figures C-1 contains ...
Finance accounting - Eddings Company had a beginning inventory of 400 units of ...
Math - Imagine that you’re the manager of an auto parts store. Figure A-2 ...
BUSINESS - Describe the kinds of inventory federal express corporation holds. ...

Search
Members