The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she...

Question

Question

The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last

B) What is the annual holding cost? C) What is the annual ordering cost? D) What are the annual cost of the silverware with a

business Operations-Management

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Optimum order uantity considering smaller order ( under 2000)

= [ 2 x44400x205 / 1.8x0.05]^1/2 = 14222

Since the order range lies in 10001 amd above, the last rate of 1.25 piece will be more appropriate

[ 2 x44000x205 / 0.05 x1.25]^1/2 = 16989.4 =16990

annual holding cost = (16990/2 ) x0.05 x1.25 = 530.93 =531

annual ordering cost = (44400/16990) x 205 = 535.72

annual cost of silverware =1.25x44400 = 55500
Total cost = 55500+531+535,72 = 56566.72 =56567

Add a comment

Answer 2

Similar Homework Help Questions

The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she...

The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500 people, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer. For a small order (2,000 pieces or less) her vendor quotes a price of $1.80/piece. If...
The manager of a car wash received a revised price list from the vendor who supplies...

The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was 4 days, but now the vendor promises a reduction of 25 percent in that time. Annual usage of soap is 5990 gallons. The car wash is open 360 days a year. Assume that daily usage is normal, and that it has a standard deviation of 4.0 gallons per...
The manager of a car wash received a revised price list from the vendor who supplies soap, and a ...

The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was 8 days, but now the vendor promises a reduction of 25 percent in that time. Annual usage of soap is 4650 gallons. The car wash is open 360 days a year. Assume that daily usage is normal, and that it has a standard deviation of 3.0 gallons per...

Anna owns and operates a small bagel shop in Montreal, Canada. She is constantly baking bagels...

Anna owns and operates a small bagel shop in Montreal, Canada. She is constantly baking bagels which are sold fresh out of the oven and customers line up to purchase them. She manages the inventory of the bread flour used to make the bagels very carefully. The quantity of bread flour she uses is exactly equal to 21 kilos per day (which makes exactly 210 bagels). The selling price of a bagel is $1. The bread flour is purchased from...
2. The Hercules Machine Company purchases 38,000 units of a component each year at a price...

2. The Hercules Machine Company purchases 38,000 units of a component each year at a price of $4.00 per unit. The ordering cost is $9.00 per order, and the annual holding cost is estimated at 25% of the unit value. (a) What is the economic order quantity for the component? (b) What is the total annual inventory cost for the component if it is ordered in economic quantities? (c) What is the maximum number of components in inventory at one...
question 2 1) David and Beth Sheba run a health food store. Their top selling item...

question 2 1) David and Beth Sheba run a health food store. Their top selling item is called Heavenly Kelp. The annual demand for this is 810 units, and demand is constant throughout the year. The cost of placing an order is $20, while the holding cost per unit per year is $4. Determine the economic order quantity a) 80 b) 90 c) 360 d ) 180 e) None of these (Question 2 and 3) Ivonne Callen sells beauty supplies....

There was no question about Carl’s genius. Seven years ago he decided to enter the competitive...

There was no question about Carl’s genius. Seven years ago he decided to enter the competitive nightmare that the personal computer business had become. Although on the surface that appeared to be a rather non-genius-like move, the genius came in the unique designs and features that he developed for his computer. He also figured a way to promise delivery in only two days for the local and regional market. Other computer makers also had rapid production and delivery, but they...
Should World Kitchen outsource Pyrex production and close the Charleroi plant? If so, how many suppliers should the company employ and where should they be located? We were una...

Should World Kitchen outsource Pyrex production and close the Charleroi plant? If so, how many suppliers should the company employ and where should they be located? We were unable to transcribe this imagedishwas resulted from a process that pressed together yers of thin, strengthened opaque glass. products if they were moved overseas and simply source the lower-cost private-label versions directly sales and marketing functions. THE MARKET Givsn its extensive experience with outsourcing the Giobal Sourcing Department at World Kitchen had...
My question is about the case study “ Comparing Apples and Oranges: which group yuelds the...

My question is about the case study “ Comparing Apples and Oranges: which group yuelds the best profit?” 1) Using the Excel apreadsheet attached to complete the rooms sold and revenue projections based on the above case study. Case Study: "Comparing Apples and Oranges: Which Group Yields the Best Profit?" The Diamond Peak Hotel, one of 45 hotels in the Host Marriott management company, was bustling with business this Thursday afternoon as the hour of the daily revenue meeting drew...

Please read the article and answer about questions. You and the Law Business and law are...

Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...

The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she...

Homework Answers