Exercise 9 Exercise 10 Exercise 11 Exercise 12
A rice exporter buys rice from the only supplier. The demand of rice is certain throughout the year. Last year, the exporter exported 3,000 tons of rice. Ordering cost is $200 per order. The annual holding cost is 10% of the purchase cost. The exporter pays $500 per ton to the supplier.
a. What should the economic order quantity be?
b. What is the total annual holding cost?
c. What is the total annual ordering cost?
Exercise 13
A company produces and sells the swimsuits to the market with the following information:
- Fixed production cost: $200,000
- Variable production cost per unit: $100.
- During the summer season, selling price: $225 per unit.
- Salvage value: Any swimsuit not sold during the summer season is sold to a discount store for $80 per unit.
- Scenario1: demand ends up being 13,000 units
- Scenario1: demand ends up being 11,000 units
a. Based on above two scenarios calculate the average profit when the production output is 8,000; 10,000; 12,000; 14,000; 16,000 respectively
b. What production output should the company choose?
Demand
|
8,000
|
10,000
|
12,000
|
14,000
|
16,000
|
18,000
|
Probability
|
11%
|
11%
|
28%
|
22%
|
18%
|
10%
|
Share with your friends: |
