QUESTION 3 A company will begin stocking remote control devices. Expected monthly demand is 750 units. The controllers will be purchased from RCD supplier offering price breaks for quantities. RCD...
A company will begin stocking remote control devices. Expected monthly demand is 700 units. The controllers will be purchased from RCD supplier offering price breaks for quantities. RCD’s price list is as follows: Quantity Range Unit Price 0 to 299 16.00 300 to 399 15.80 400 to ? 15.10 Given that ordering cost is $40 and annual holding cost is 0.25 of unit price per unit, provide the following results: • What is the feasible quantity? o What is the...
QUESTION 2 A company is about to begin production of a new product. The manager of the department wants to know how often the machine used to produce the current item will be available for the production of the new product. The machine produces the current item at a rate of 220 units a day. 70 units will be used daily in assembling the final product. Assembly takes place five days a week, 50 weeks a year. The manager estimates...