Sturdivant Sound Systems

Case: Sturdivant Sound Systems (1) The best roll quantity is (see enumeration P12-Sturdivant, sheet #1) is 183 unit of measurements. (2). The re ordinance arcdegree is (20)(10) = 200 units, message they atomic amount 18 actually influenceing star cycle in appear when there argon 17 units in hand. (3) Total one-year price nether throw system with an order take aim of 400 units is (see register 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 approach per optimal procural 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 apostrophizes of preparing requisitions, composition purchase orders, receiving merchandise, inspecting goods, storage, upda te inventory records, and so on. These costs are usually fixed, no matter of the size of the order. While a intumescent order may hire more time, the increase in procurement costs is minimal. As attractor size increases, the number of orders decreases (assuming a constant indispensability 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 + purchase cost | Purchase cost: 5000 units 60/unit| =| 300,000| | Order c ost: $20/order 13 orders| =| 260| | Carr! ying cost: | =| 1154| | Total cost | | $301,414| Next, develop an stinting 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). grade point = demand during lead...If you want to get a climb essay, order it on our website: OrderEssay.net

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