Instructions: Reference Case 8-1 (attached). The research question is how much should Chris Low order?
Write a 4 Page paper in APA format.
Below is a recommended outline.
1. Introduction
a. A thesis statement
b. Purpose of paper
c. Overview of paper
2. Body
a. Using the EOQ methods outlined in chapter 8, how many kegs of nails should Low order at one time? Show your calculations in the text. (Chapter 8 – The Textbook is: Contemporary Logistics, Tenth Edition Custom Course Smart ISBN: 1-25-677441-3).
b. Assume all conditions in Question 1 (a) above hold, except that Low’s supplier now offers a quantity discount in the form of absorbing all or part of Low’s order-processing costs. For orders of 750 or more kegs of nails, the supplier will absorb all the order-processing costs; for orders between 249 and 749 kegs, the supplier will absorb half. What is Low’s new EOQ? Show your calculations in the text.
c. Low’s luck at the racetrack is over; he now must borrow money to finance his inventory of nails. Looking at the situation outlined in Question (a), assume that the wholesale cost of nails is $40 per keg and Low must pay interest at the rate of 1.5 percent per month on unsold inventory. What is his new EOQ? Show your calculations in the text.
4. Conclusion – Summary of main points
5. References – List the references you cited in the text of your paper according to APA format.
(Note: Do not include references that are not cited in the text of your paper). The reference material used should include the Textbook: Contemporary Logistics, Tenth Edition Custom Course Smart ISBN: 1-25-677441-3). eText: ISBN-10 0-13-611076-2, ISBN-13 978-0-13-611076-7
NB. THE WRITER MUST ADDRESS AND ANSWER ALL THREE QUESTIONS (a, b, c) IN THE BODY OF THE ASSIGNMENT AND ESSAY BE IN APA STYLE.
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