Purchase Solution

Inventory problem:

Not what you're looking for?

Ask Custom Question

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 and $10 per stone for lesser quantities. The jewelry firm operates 200 days per year. Usage rate is 25 stones per day and ordering costs are $48

A) If carrying costs are $2 per year for each stone, find order quantity that will minimize total annual cost

B) If annual carrying costs are 30 percent of unit cost, what is the optimal order size?

C) If lead time is six working days, at what point should the company reorder?

Purchase this Solution

Solution Summary

This posting contains solution to following inventory management problem.

Purchase this Solution


Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.