7. The following were taken from the records of Sauyo Company:YearCost ofBeginningEndingGood SoldInventoryInventory(In Pesos)(In Pesos)340,50025,30030,2002.435,04030,20035,400520,40035,40036,4004547,50036,40038,300600,70038,30039,000Required: Compute the inventory turn-over for year 5. Round off answer to whole number.

The given data is as follows Cost of goods sold 600700 Average Inventory…

Answered: 7. The following were taken from the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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I Carry rents trucks for moving and hauling. Each truck costs the company anaverage of $8,000, and the inventory of trucks varies monthly depending on thenumber that are rented out. During the first eight months of last year, I Carry hadthe following ending inventory of trucks on hand:Month Number of Trucks Month Number of TrucksJanuary 26 May 13February 38 June 9March 31 July 16April 22 August 5I Carry uses a 20 percent annual interest rate to represent the cost of capital.Yearly costs of storage amount to 3 percent of the value of each truck, and the costof liability insurance is 2 percent.a. Determine the total handling cost incurred by I Carry during the period Januaryto August. Assume for the purposes of your calculation that the holding costincurred in a month is proportional to the inventory on hand at the end of themonth.b. Assuming that these eight months are representative, estimate the average annual cost of holding trucks
A hospital orders its thermometers from a hospitalsupply firm. The cost per thermometer depends on the ordersize q, as shown in Table 6. The annual holding cost is 25%of the purchasing cost. Let EOQ80 be the EOQ if the costper thermometer is 80¢, and let EOQ79 be the EOQ if thecost per thermometer is 79¢.a Explain why EOQ79 will be larger than EOQ80. b Explain why the optimal order quantity must be ei-ther EOQ79, EOQ80, or 100. c If EOQ80 100, show that the optimal order quan-tity must be EOQ79. d If EOQ80 100 and EOQ79 100, show that theoptimal order quantity must be either EOQ80 or 100.e If EOQ80 100 and EOQ79 100, show that the optimal order quantity must be EOQ79.
The best quantity to order One of the formulas for inventorymanagement says that the average weekly cost of ordering, payingfor, and holding merchandise iswhere q is the quantity you order when things run low (shoes,TVs, brooms, or whatever the item might be); k is the cost ofplacing an order (the same, no matter how often you order); c isthe cost of one item (a constant); m is the number of items soldeach week (a constant); and h is the weekly holding cost per item(a constant that takes into account things such as space, utilities,insurance, and security). Find dA>dq and d2A>dq2.
Henrique Correa's bakery prepares all its cakesbetween 4 A.M. and 6 A.M. so they will be fresh when customersarrive. Day-old cakes are virtually always sold, but at a 50% discountofT the regular $ 10 price. The cost of baking a cake is $6, anddemand is estimated to be normally distributed, with a mean of25and a standard deviation of 4. What is the optimal stocking level?
An optometrist orders eyeglass frames at a cost of $40per frame and sells each frame for $70. Annual holding costis 20% of the optometrist’s cost of purchasing a frame. Eachtime frames are ordered, a cost of $200 is incurred. Becauseof lost goodwill, a cost of $50 is incurred each time acustomer wants a frame that is not in stock. Frames aredelivered one week after an order is placed. Annual demandfor frames is N(1,040, 15.73).a Assuming all shortages are backlogged, determinethe order quantity and reorder point. b Assuming all shortages result in lost sales, deter-mine the order quantity and reorder point. c To meet 95% of all orders from stock, what shouldbe the reorder point?d To have shortages occur during an average of twolead times per year, what should be the reorder point?
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
The materials manager of a tire manfacturer must predict periodically place order for a key chemical one of the raw materials used in manufacturing uses the chemical at a rate of 300lbs each week and the lead time of delivery is 4 days. Assume that the manufacturing operation runs 5 days a week. At what point should the chemical be reorderedd a. when 1200lbs are remaining b. where 0lbs are remaining c. where 375lbs are remaining d. when 240lbs are rem
A hot dog vendor at Wrigley Field sells hot dogs for$1.50 each. He buys them for $1.20 each. All the hot dogshe fails to sell at Wrigley Field during the afternoon can besold that evening at Comiskey Park for $1 each. The dailydemand for hot dogs at Wrigley Field is normally distributedwith a mean of 40 and a standard deviation of 10.a If the vendor buys hot dogs once a day, how manyshould he buy?b If he buys 52 hot dogs, what is the probability that hewill meet all of the day’s demand for hot dogs at Wrigley?
A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)d. Which method resulted in the lowest-cost policy for this problem?
A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)a. What ordering policy is recommended by the Silver–Meal heuristic?
A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)c. What ordering policy is recommended by the least unit cost heuristic?
A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)b. What ordering policy is recommended by the part period balancing heuristic?

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