Question
In: Operations Management
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price...
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.20 per stone for quantities of 600 stones or more, $8.70 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. The jewelry firm operates 214 days per year. Usage rate is 25 stones per day, and ordering costs are $48.
| a. |
If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Round your intermediate calculations and final answer to the nearest whole number.) |
| Order quantity | stones |
| b. |
If annual carrying costs are 27 percent of unit cost, what is the optimal order size? (Round your intermediate calculations and final answer to the nearest whole number.) |
| Optimal order size | stones |
| c. |
If lead time is 5 working days, at what point should the company reorder? |
| Reorder quantity |
stones |
Solutions
keosha answered 8 months agoRelated Solutions
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price...
A jewelry firm buys semiprecious stones to make bracelets and
rings. The supplier quotes a price of $8.00 per stone for
quantities of 600 stones or more, $8.30 per stone for orders of 400
to 599 stones, and $10 per stone for lesser quantities. The jewelry
firm operates 175 days per year. Usage rate is 25 stones per day,
and ordering costs are $48. a. If carrying costs are $2 per year
for each stone, find the order quantity that...
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price...
A jewelry firm buys semiprecious stones to make bracelets and
rings. The supplier quotes a price of $8.40 per stone for
quantities of 600 stones or more, $8.80 per stone for orders of 400
to 599 stones, and $9.30 per stone for lesser quantities. The
jewelry firm operates 113 days per year. Usage rate is 20 stones
per day, and ordering costs are $51. a. If carrying costs are $2
per year for each stone, find the order quantity that...
EOQ. A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a...
EOQ. A jewelry firm buys semiprecious stones to make bracelets
and rings. The supplier quotes a price of $8 per stone for
quantities of 600 stones or more, $9 per stone for orders of 400 to
599 stones, and $10 per stone for lesser quantities. The jewelry
firm operates 200 days a year. Daily demand is 200 stoned per day,
and ordering cost are $48. If carrying cost are $2 per year per
stone, find the order quantity that will...
Your company buys wheat to make bread. How can you hedge your exposure to the price...
Your company buys wheat to make bread. How can you hedge your
exposure to the price of wheat? Check all that apply: Buy call
options on wheat
1.Buy wheat futures
2.Buy put options on wheat
3.Sell call options on wheat
4.Sell wheat futures
The goal of the firm is to maximize firm value (maximize the stock price). How can the managers of the firm make this happen?
The goal of the firm is to maximize firm value (maximize the stock price). How can the managers of the firm make this happen? How might agency costs get in the way? Explain
A bicycle manufacturer currently produces 369,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $1.90 a chain. The plant manager believes that it would be cheaper to make these
A bicycle manufacturer currently produces 369,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $1.90 a chain. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct in-house production costs are estimated to be only $1.60 per chain. The necessary machinery would cost $293,000 and would be obsolete after ten years. This investment could be depreciated to...
A. In the short-run if the price of the firm’s product is $75 this firm will produce ______ units and (make a normal profit only; make an economic profit of $______; make an economic loss of $______).
Quantity TC0781156221932744320541065207660A. In the short-run if the price of
the firm’s product is $75 this firm will produce ______ units and
(make a normal profit only; make an economic profit of $______;
make an economic loss of $______). Suppose
this firm is typical of other firms in this industry. In the
long-run (firms in other industries will enter this
industry; firms in this industry will begin to leave)
so market supply will (increase, decrease), and
the price of the product...
Does the firm make more profits if it engages in 1st or 2nd-degree price discrimination? Explain...
Does the firm make more profits if it engages in 1st or
2nd-degree price discrimination? Explain with numerical graphical
examples. The more detailed the explanation you provide, the more
credits you’ll get
If (perfectly) competitive firms are price takers, how can such a firm make any economic profit...
If (perfectly) competitive firms are price takers, how can such
a firm make any economic profit in the short run? Can such a firm
continue to make economic profit in the long run/ Why/how/why not?
Explain.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- I cant not seem to get this right. I have tried and tried can I please...
- By using Java language, Complete the StackArray.java by using.stackArrayDemo.java. 1.Read the StackArrayDemo.java. 2. Use the demo...
- Regardless of the legal issues, do you feel it is fair for an employer to require...
- An investor believes that there will be a big jump in a stock price, but is...
- What experiences have you had with adaptation? Have you experienced culture shock and “return” culture shock?
- C language only please and please make a simple code Write a function that will find...
- Write a class DataSet that stores a number of values of type double in an array...
ADVERTISEMENT