module 3 quantitative assignment db430 2

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Calhoun Community College *

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320

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Industrial Engineering

Date

Apr 3, 2024

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xlsx

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3

Uploaded by annakatefreisen

1 Type Full Name in row 3 below: Anna Kate Freisen PROBLEM 1 (3 pts) a. Calculate inventory turnover for this item 3,250 +2,250 / 2 = 5,500/2 Average inventory= 2,750 Inventory turnover = 687,500 / 2750 =250 b .Calculate days inventory outstanding for this item 365/250 = 1.46 days PROBLEM 2 (4 pts) a. Find inventory turnover and days inventory outstanding for this item. 1,000 + 2,000 / 2 = 3000 / 2 = $1500 30,000/1500= 20 times a year 1500 /30,000 x 365 =18.25 days b. Explain, in words, what these numbers mean. The inventory turnover is the ratio that measures the number of times inventory is sold or used in a given Time period, which is calculated by dividing net sales by average inventory. The number of days of supply means the average number of days the inventory is held by the company Before it is being sold. The more days of supply means the fewer days of lost production. PROBLEM 3 (5 pts) Total annual cost = 30 x 50,000+50,000/1,000 x 200 = 1,000 /2 x 5 1,500,000 +10,000+2,500 Respond to all six (6) problems below. Be sure to scroll down and answer every question. For a particular electrical panel, you started the year with 3,250 units in stock. You ended the year with 2,250 units. Each unit costs you $100 to buy, and sells for $120. Total cost of goods sold for this unit during the year were $687,500. For a popular pair of safety gloves, COGS for the year were $30,000, beginning inventory at cost was $1,000, and ending inventory at cost was $2,000. Annual demand for a particular set of drill bits is 50,000 units. Each set costs you $30. Placing an order costs $200. Each unit costs $5 per year to hold. a. What is the total annual cost associated with purchasing, ordering, and holding this item if you order 1,000 units at a time?
2 Total annual cost = $1,512,500 2 x 50,000 x 200 /5 =2,000 units Total annual cost 1,500,000 +5,000 +5,000 Total annual cost = 1,510,000 2 x 50,000 x150/5 EOQ = 1,732 New total annual cost = 30 x 50,000 + 50,000 / 1,732 x150 +1732/2 x5 New total annual cost = 1,500,000 + 4,330 + 4,330 New total annual cost = 1,508,660 PROBLEM 4 (4 pts) a. What is the reorder point for this item? 1500 / 365 =4.10 per day x20 = 82 units z=0 for 50% service level with no safety stock there is a 50% probability of stock out. PROBLEM 5 (4 pts) Std.Dev. Of LT Demand, Desired service level: a. 50, 50% 50% = 0.00 300 + 0 (50) =300 + 0 = 300 units b. 50, 95% 95 % = 1.645 300 + 1.645 x 50 = 300 + 82.25 = 382 units c. 100, 95% 300 + 1.64.50 = 465 units d. 100, 98% b. Find the economic order quantity. What is the resulting total annual cost when ordering this quantity? c. You are able to reduce your ordering cost to $150. How much do the EOQ and total annual cost change, and in what direction? Annual demand for a hospital bed is 1,500 units. It takes 20 days for you to replenish your inventory for this item after placing an order. You keep no safety stock. b. If demand during the lead time is normally distributed, what is the probability you will stock out before you receive new inventory? The expected demand for rolls of copper wire during the lead time is 300 units. Compute the appropriate reorder for each combination of standard deviation of lead time demand and desired service level below.
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