Economic order quantity (EOQ) for Organic Hummus

 

 

 

Andronico’s in the financial center is open 300 days a year. They sell Organic Hummus; and sales are approximately normally distributed with an average of 100 tubs/day and a standard deviation of 25 tubs/day. The wholesale cost is $1.80/tub, and they calculate their annual holding costs by using 20% of the wholesale cost. Orders cost $50 to place, regardless of number of tubs ordered and take 4 days to arrive

What is the economic order quantity (EOQ) for Organic Hummus?
What are total annual cycle-stock holding costs for Organic Hummus?
What are the total annual fixed order costs for Organic Hummus?
Now Andronico’s has decided to save money and manufacture their own Hummus in-house, with a production rate of 600 tubs/day, their setup cost would only be $7.50/run, and their annual holding cost would be $0.20/tub, but all other parameters remain unchanged. What is the Economic Production Quantity?

 

Sample Solution

The lesson was conducted over two weeks as time was a constraint when using the iPad as the lessons within placement A are relatively short, so these lessons will be discussed as a whole. At the start of the lesson, students were sat down and given a routine of the lesson and what it would involve. The observing teacher stated on the observation sheet that she liked how the AT sat the students down and were given a ‘’clear routine” of the lesson (Appendix 6). The AT insured that the lesson was carefully planned and that a competent knowledge was showcased when it came to integrating the iPad to avoid issues such as ‘lack of time’ highlighted previously by Pyle and Esslinger (2013). As this limited knowledge and experience of ICT in education can be seen as a barrier to learning for students (Honan, 2008; Kiridis et al, 2006). Which in turn will affect students’ progress. The idea of giving a ‘clear routine’ was to ensure the students knew behaviour expectations for the AT to keep control of the class as the iPad could disrupt learning (Henderson and Yeow, 2012) hindering progress.

During the lesson, students were asked to create a gymnastic sequence while linking in other parts of the curriculum. They looked at three keywords taken from the SOW on the board of Tension, extension and precision (Appendix 2) and had to craft a sequence. At this point, it was clear to see that the students were excited about using the iPad as the observing teacher mentioned in a professional discussion that students were ‘’Optimistic and engaged compared to previous lessons”. The students were engaged straight away, with the theme occurring throughout the lesson. Students knew they would be recording their performances and assessing themselves based on the keywords, focusing them on what constitutes success and supports them in assessing their own learning and progress (Bartlett, 2015) which meant the stud

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