3. Sarita Uribe opened a new beauty products retail store. There are numerous items in inventory, and Sarita knows that there are costs associated with inventory. However, her time is limited so she cannot carefully evaluate the inventory policy for all products. Sarita wants to classify the items according to the dollars invested in them. The following table provides information about the 10 items that she carries: ITEM NUMBER UNIT COST ($) DEMAND (UNITS) E102 4 800 D23 8. 1200 D27 3 700 R02 1000 R19 8. 200 S107 6. 500 S123 1 1200 U11 7 800 U23 1 1500 V75 4 1500 a) Use ABC analysis to classify these items into categories A, B, and C. b) Develop a cycle policy if class A items are to be reviewed every 20 days, B items every 60 days, and C items every 120 days.

3. Sarita Uribe opened a new beauty products retail store. There are numerous items in inventory, and Sarita knows that there are costs associated with inventory. However, her time is limited so she cannot carefully evaluate the inventory policy for all products. Sarita wants to classify the items according to the dollars invested in them. The following table provides information about the 10 items that she carries: ITEM NUMBER UNIT COST ($) DEMAND (UNITS) E102 4 800 D23 8. 1200 D27 3 700 R02 1000 R19 8. 200 S107 6. 500 S123 1 1200 U11 7 800 U23 1 1500 V75 4 1500 a) Use ABC analysis to classify these items into categories A, B, and C. b) Develop a cycle policy if class A items are to be reviewed every 20 days, B items every 60 days, and C items every 120 days.

Name: Please give answer to question (b) of the following table 3. Sarita Ur
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Description: Please give answer to question (b) of the following table 3. Sarita Uribe opened a new beauty products retail store. There are numerous itemsin inventory, and Sarita knows that there are costs associated with inventory.However, her time is limited so

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 14P

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The demand for a clothing brand is shown in the table below. The cost per order is about $4000. Cost of each unit of clothing = $5. Carrying cost percentage = 25% per item per 5 months. The analysis period = 5 month duration. Month Demand 1 400 2 300 3 200 4 400 5 500 a. Using this data, compute the solutions using the Lot for Lot and Periodic Order Quantity heuristics? Which of these heuristics would perform better and why? b. Assuming that the demand follows a normal distribution with the mean and variance from the data given above, determine the optimal order should be greater or lesser than the single period EOQ model.
Problem 20-40 (Algo) In the past, Taylor Industries has used a fixed−time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's items. ITEMNUMBER ANNUALUSAGE ITEMNUMBER ANNUALUSAGE 1 $ 1,600 11 $ 13,200 2 12,200 12 700 3 2,300 13 42,400 4 50,500 14 10,100 5 11,600 15 1,300 6 900 16 10,400 7 2,100 17 4,100 8 11,200 18 61,600 9 5,200 19 3,600 10 15,200 20 3,000 a. Classify each item in inventory using an ABC plan.
Quantity discounts. This type of problem can be recognized when a list showing prices for eachquantity range is given along with the basic EOQ information.a. If unit holding cost is constant, use these steps to solve the problem:1. Use Formula 13–2 to find Q.2. Locate Q in the price schedule.3. Compute TC using Formula 13–1 for Q and for all lower-cost price breaks.b. If unit holding cost is a percentage of unit price, use these steps to solve the problem:1. Beginning with the lowest cost, and using the corresponding H for that cost, compute Qusing Formula 13–2. Continue moving up in unit cost until a feasible Q is found.2. Locate the feasible Q in the price schedule.3. Compute TC using Formula 13–9 for Q and for all lower-cost price breaks. Remember to usethe corresponding H for each price.A small manufacturing firm uses roughly 3,400 pounds of chemical dye a year. Currently the firmpurchases 300 pounds per order and pays $3 per pound. The supplier has just announced that ordersof…
Consider that you work at Kroger Grocery store, and that you've been tasked with creating an ABC inventory classification for 6 items. The 6 items, as well as their profit per case and number of cases sold per week, are as follows:Ribeye Steak - $135 in profit per case, 3 cases sold per weekLobster Tail - $245 in profit per case, 3 cases sold per weekPasta - $23 in profit per case, 12 cases sold per weekSalt - $3 in profit per case, 2 cases sold per weekNapkins - $12 in profit per case, 2 cases sold per weekTomato Sauce - $23 in profit per case, 11 cases sold per weekUsing total weekly profits, please classify each products into A, B, or C categories. Which items form the boundary of the class A and B items in your classification, and why? Which items form the boundary of the class B and C items in your classification, and why?
The office manager for the Metro Life Insurance Companyorders letterhead stationery from an office products firm inboxes of 500 sheets. The company uses 6500 boxes peryear. Annual carrying costs are $3 per box, and orderingcosts are $28. The following discount price schedule isprovided by the office supply company: Order Quantity (boxes) Price per Box200–999 $161000–2999 143000–5999 136000 12 Determine the optimal order quantity and the total annualinventory cost.
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Omega DB Corp. has a policy of maintaining an inventory of finished goods equal to 40 percent of the next month’s budgeted sales. If Omega DB Corp. plans to produce 6,000 units in June, what are budgeted sales for July in units? Budgeted sales for the first six months of 2019 for Omega DB Corp. are listed below: Units:JANUARY 6,000FEBRUARY 7,000MARCH 8,000APRIL 7,000MAY 5,000JUNE 4,000
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