Sturdivant Sound Systems

Case: Sturdivant Sound Systems (1) The best roll quantity is (see pull in P12-Sturdivant, sheet #1) is 183 unit of measurements. (2). The re purchase send arcdegree is (20)(10) = 200 units, subject matter they atomic amount 18 actually ordering adept cycle in appear when there argon 17 units in hand. (3) Total one-year price down the stairs surrender system with an order take aim of 400 units is (see commit P12-Sturdivant, sheet #2): Cost of equipment = (5,000 units)($60) = $300,000 Procurement greet = ($20 per order)(12.5 orders) = 250 Carrying greets = [(400/2) units]($6/unit) = 1,200 Total = $301,450 Total yearly follow per optimal procurement 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 be associated with procurement of materials include make ups of preparing requisitions, composition purchase orders, receiving merchandise, inspecting goods, storage, update inventory records, and so on. These costs are usually fixed, regardless of the size of the order. While a intumescent order may pack more time, the increase in procurement costs is minimal. As locoweed size increases, the number of orders decreases (assuming a constant requisite level). Consequently, procurement costs result decrease with increases in lot sizes. | Sturdivant Sound Systems | 1.Compute the optimal order quantity.

First, tally the cost under the present policy: Number of orders/year orders Average order size or 385 units Total cost = order cost + holding cost + p urchase cost | Purchase cost: 5000 unit! s 60/unit| =| 300,000| | Order cost: $20/order 13 orders| =| 260| | Carrying cost: | =| 1154| | Total cost | | $301,414| Next, develop an frugal Order Quantity, and determine the total costs: or 183 units where: D = period demand, S = setup or order cost, H = holding cost 2.Determine the appropriate reorder point (in units). rank point = demand during lead...If you want to get a replete essay, order it on our website: BestEssayCheap.com

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