Millennium Liquors is a wholesaler of sparkling wines. Its most popular product is theFrench Bete Noire, which is shipped directly from France. Weekly demand is 45 cases.Millennium purchases each case for $120, there is a $300 fixed cost for each order(independent of the quantity ordered), and its annual holding cost is 25 percent.a. What order quantity minimizes Millennium’s annual ordering and holding costs?b. If Millennium chooses to order 300 cases each time, what is the sum of its annualordering and holding costs?c. If Millennium chooses to order 100 cases each time, what is the sum of the orderingand holding costs incurred by each case sold?d. If Millennium is restricted to ordering in multiples of 50 cases (e.g., 50, 100, 150, etc.),how many cases should it order to minimize its annual ordering and holding costs?e. Millennium is offered a 5 percent discount if it purchases at least 1000 cases. If itdecides to take advantage of this discount, what is the sum of its annual ordering andholding costs?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Millennium Liquors is a wholesaler of sparkling wines. Its most popular product is the
French Bete Noire, which is shipped directly from France. Weekly demand is 45 cases.
Millennium purchases each case for $120, there is a $300 fixed cost for each order
(independent of the quantity ordered), and its annual holding cost is 25 percent.
a. What order quantity minimizes Millennium’s annual ordering and holding costs?
b. If Millennium chooses to order 300 cases each time, what is the sum of its annual
ordering and holding costs?
c. If Millennium chooses to order 100 cases each time, what is the sum of the ordering
and holding costs incurred by each case sold?
d. If Millennium is restricted to ordering in multiples of 50 cases (e.g., 50, 100, 150, etc.),
how many cases should it order to minimize its annual ordering and holding costs?
e. Millennium is offered a 5 percent discount if it purchases at least 1000 cases. If it
decides to take advantage of this discount, what is the sum of its annual ordering and
holding costs?
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