# DeVry BSOP 434 Week 1 Lab Latest

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## DeVry BSOP 434 Week 1 Lab Latest

Note!

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Submit your assignment to the Dropbox located on the silver tab at the top of this page.

(See the Syllabus section “Due Dates for Assignments & Exams” for due dates.)

### Scenario/Summary

After making some wise short-term investments at a race track, Chris Low had some additional cash to invest in a business. The most promising opportunity at the time was in building supplies, so Low bought a business that specialized in sales of one size of nail. The annual volume of nails was 2,000 kegs, and they were sold to retail customers in an even flow. Low was uncertain of how many nails to order at any time. Initially, only two costs concerned him: order-processing costs, which were \$60 per order without regard to size, and warehousing costs, which were \$1 per year per keg space. This meant that Low had to rent a constant amount of warehouse space for the year, and it had to be large enough to accommodate an entire order when it arrived. Low was not worried about maintaining safety stocks, mainly because the outward flow of goods was so even. Low bought his nails on a delivered basis.

### Deliverables

This week’s lab consists of six questions. Please be certain that you answer all of the questions and address all of the areas outlined in the grading rubric below.

### Step 5: Financing Inventory

Question 5: Temporarily ignore your work on Questions 2, 3, and 4. Low’s luck at the race track is over; he now must borrow money to finance his inventory of nails. Looking at the situation outlined in Question 1, assume that the wholesale cost of nails is \$40 per keg and that Low must pay interest at the rate of 1.5% per month on unsold inventory. What is his new EOQ?

### Step 6: Final EOQ

Question 6: Taking into account all of the factors listed in Questions 1, 2, 3, and 5, calculate Low’s EOQ for kegs of nails.

### Step 7: Final Step

Submit your completed assignment to the this week’s Lab Dropbox in a MS Word document for grading. The cover page should adhere to the APA 6.0 guidelines.

See the Syllabus section “Due Dates for Assignments & Exams” for due dates.

• Be sure to answer all of the questions.
• It is recommended that you show all of your work. If you only provide the answers and any of them are incorrect, you will lose all of the points allocated to the incorrect answer. However, if you show your work, you might be able to earn partial credit even if the answer is incorrect. An example would be if you set up the problem correctly, but then made a math error in calculations.

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DeVry BSOP 434 Week 1 Lab Latest

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