Question
In: Operations Management
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 minimize total cost.
What is the optimal order Quantity?
A what price per unit?
Solutions
keosha answered 1 year 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
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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
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a.
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