1. A store is determining how potato chips to order considering the annual demand for this is 200, the cost to order is Php 10.00, and the holding cost per jar is Php 0.15.
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- Over t he past 5 weeks, dema nd for wine atWinston's Winery has averaged 1,890 bottles, and the varianceof demand has been 793,000 bottles. Winston has ordered anaverage of l ,900 bottles per week over that time period, with avariance of orders of I ,805,000 bottles.a) What is the bullwhip measure for glass bottles for Winston's Winery?b) Is Winston's Winery providing an amplify ing or smoothing effect?A plant manager of a chemical plant must determine the lot size for a particular chemical that has a steadydemand of 30 barrels per day. The production rate is 190 barrels per day, annual demand is 10,500 barrels,setup cost is $200, annual holding cost is $0.21 per barrel, and the plant operates 350 days per year.a. Determine the economic production lot size (ELS).b. Determine the total annual setup and inventory holding cost for this item.c. Determine the time between orders (TBO), or cycle length, for the ELS.d. Determine the production time per lot.What are the advantages of reducing the setup time by 10 percent?Catlea Merchandising is engaged in selling school shoesfor both boys and girls in their teenage years. Catlea needs 32,000 pairs of shoes in a year in order to satisfy the market demand. It costs ₱ 48 to place an order while ₱ 8 is needed to hold each quantity of shoe in Catlea's inventory. Upon checking on Catlea's supplier, it takes 8 days in between placing an order and eventually receiving it. a. Determine the Economic Order Quantityb. Determine the number of order per monthc. Determine the reorder point
- 1. The bottleneck operations for manufacturing the chairs is cutting the woods. It is know that it takes 10 minutes to cutting the woods to make one chair. The company operates 8 hours per day, 20 days per month, what is the monthly capacity of the manufacturing process? 2. A company uses transportation mode analysis to decide whether to choose slower shipping or faster shipping from Portland to Los Angeles using ship connectors. The value of the connectors is $1,200. The holding cost is 10% per year. And the company knows one carrier is 1 day faster but $15 more expensive. Please help the company to make the decision.: whether to choose slower shipping or faster shipping.(1) An architect firm uses an average of 60 boxes of copier paper a day. The firm operates 280 days a year.Storage and handling costs for the paper are $30 a year per box, and its costs approximately $60 to orderand receive a shipment of paper.(a) What quantity order size would minimize the total annual inventory cost?________________________________________________________________________________(b) Determine the minimum total annual inventory cost.________________________________________________________________________________(c) The office manager is currently using an order size of 300 boxes. The partners of the firm expect theoffice to be managed "in a cost-efficient manner." Would you recommend the manager to use yourquantity from part (a) rather than 300 boxes? _______.Justify your answer (by determining the total annual inventory cost for 300 boxes):_____________________________________________________________________________Riex Blocks – “Hastang gahi a” specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a semi-annual order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 7% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 145 per order per year. *SHOW SOLUTIONSa.) What is the economic order quantity? (choose from the choices) -282 -200 -75 -52 -35 b.) How many orders should be made each year? (choose from the choices)- 9 -12 -13 -17 -64
- Riex Blocks – “Hastang gahi a” specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a semi-annual order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 7% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 145 per order per year. What is the economic order quantity? and how many orders should be made each year?Emarpy Appliance is a company that produces a llkinds of major appliances. Bud Banis, the president of Emarpy,is concerned a bout the production policy for the company's bestsellingrefrigerator. The annual demand has been about 8,000units each year, and this demand bas been constant throughoutthe year. The production capacity is 200 units per day. Each timeproduction starts, it costs the company $ 120 to move materialsinto place, reset the assembly line, and clean the equipment. Theholding cost of a refrigerator is $50 per year. The current productionplan calls for 400 refrigerators to be produced in each productionrun. Assume there are 250 working days per year.a) What is the daily demand of this product?b) If the company were to continue to produce 400 units each timeproduction starts, how many days would production continue?c) Under the current policy, how many production runs per yearwould be required? What would the annual setup cost be?d) lf the current policy continues, how many…Operations Manager of PT Radio Gaga is calculating production costsa telecommunication radio taking into account the following needs:i. Week 1 : 20 unitsii. Week 2 : 36 unitsiii. Week 3 : 46 unitsiv. Week 4 : 45 unitsv. Week 5 : 20 unitsvi. Week 6 : 26 unitsIt is known that there is inventory from the previous week as many as 20 units. Assuming 52week per year, lead time booking for 1 week, setup cost of $40 andholding cost of $0.75 per week, you are required to assist the Operations Manager of PTRadio Gaga to calculate the estimated production cost as follows: a. Calculate EoQ b. Create a 6-week MRP Lot Sizing Table with EoQ method c. Calculate Total Production Cost using EoQ method d. Create a 6-week MRP Lot Sizing Table using the Lot methodfor Lot e. Calculate Total Production cost by using Lot for Lot methodF. Which method will PT Radio Gaga's Operations Manager take?
- Race One Motors is an Indonesian car manufacturer. Atits largest manufacturing facility, in Jakarta, the company producessubcomponents at a rate of 300 per day, and it uses these subcomponentsat a rate of 12,500 per year (of250 working days). Holding costsare $2 per item per year, and orde1ing (setup) costs are $30 per order.a) What is the economic production quantity?b) How many production runs per year will be made?c) What will be the maximum inventory level?d) What percentage of time will the facility be producing components?e) What is the annual cost of ordering and holding inventory?The following are the details of the inventory of Aloysius Pharmacy Equipment = PhP 2,500 Handling = 500 Labor = 1,500 Obsolescence = 100 Protective measures = 300 Pilferage = 100 Inventory value = 100,000 Opportunity cost = 10% Insurance = 4% Taxes = 7% How much is the Inventory Cost? PhP 2,500 PhP 4,500 PhP 5,000 PhP 100,000 None of the given choices What is the Inventory Carrying Rate? 4% 5% 7% 10% 100% None of the given choicesYour options for shipping $100,000 of machineparts from Baltimore to Kuala Lumpur, Malaysia, are (1) usea ship that will take 30 days at a cost of $3,800 or (2) truck theparts to Los Angeles and then ship at a total cost of $4,800.The second option will take only 20 days. You are paid via aletter of credit the day the parts arrive. Your holding cost isestimated at 30% of the value per year.a) Which option is more economical?b) What customer issues are not included in the datapresented?