A manufacturer has a production facility that requires 15,604 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 7 days. The unit purchase cost is $25.6 per unit. The cost to place and process an order from the supplier is $121 per order. The unit inventory carrying cost per year is 10.5 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. If the manufacturer uses a constant order quantity of 2,640 units per order, what is the annual holding cost? Use at least 4 decimal places.
Q: A department supervisor is considering purchasing one of two comparable photocopy machines, A or B.…
A: Given,
Q: AutoTime, a manufacturer of electronic digital timers, has a monthly fixed cost of $50,000 and a…
A: Monthly Fixed cost = $50,000 Production Cost = $7 each Selling Price = $15 each
Q: A specialized machine essential for a company's operations costs $5,000 and has operating costs of…
A: Calculations:
Q: Joe is selling Christmas trees to pay his college tuition.He purchases trees for $10 each and sells…
A: Since this question provides no limiting data to do the calculations. Lets assume that we will have…
Q: A manufacturer has a monthly fixed cost of $44,000 and a production cost of $9 for each unit…
A: Fixed cost is the cost that is not dependent on the number of goods and services produced or sold in…
Q: CWD Electronics sells Televisions (TV), which it orders from the USA. Because of shipping and…
A: Given, Lead time (weeks) Probability Demand/week Probability 1 0.45 1 0.15 2…
Q: The Noname Computer Company builds a computer-designated model ICU2. It imports the motherboard of…
A: Given - Noname Computer Company manufactures an ICU2 computer by utilizingthe following things- 1…
Q: Vetox sells industrial chemicals. One of their inputs can be purchased in either jugs orbarrels. A…
A: Vetox sells industrial chemicals. One of their inputs can be purchased in either jugs orbarrels. A…
Q: A barge company moves CoB freight between Memphis and New Orleans. Each barge tow is limited to 15…
A: Given - The round trips take time = 6 days Days in a month = 30 days Forecasts call = 37 round trip…
Q: Eastern Electric (EE) is a major appliance manufacturer with a large plant in the Chicago area. EE…
A: Golden’s new proposal will result in low transportation costs for EE if the plant manager orders in…
Q: A food manufacturing company orders raw material A, 1200 kg annually. The company estimates its…
A: SOLUTION: Annual Demand D = 1200 kg Holding Cost H =0.50×12 = 6.00 Per year Ordering Cost S = 250.00
Q: A phone retailer buys three phone models from the same supplier. The retailer pays per unit cost of…
A: A = Annual usage in units (Demand)S = ordering cost (per order) in dollars or rupeesi = annual…
Q: Kooyman hardware sells 16 different types of drills. They had demand for 10 of the drills and…
A: ANSWER : Given , Sells 16 types of drills Demand = 10 Satisfied demand = 80% fill rate for drills?…
Q: The Sports Shoe Company is a manufacturer of basketball and football shoes. The manager of marketing…
A: Given data, Pair of shoes sponsored for football team = 120 Basketball team = 32 Pairs Amount…
Q: A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that…
A: Given - Annual Demand = 1,180,000 brake pads Working Days = 250 days
Q: A small firm uses 3,400 lbs of chemical dye a year. Currently the firm purchases 300 lbs per order…
A: Given data is Demand(D) = 3400 lbs Order cost(S) = $100 Holding cost(H) = $0.51
Q: A tire store orders its stock for a popular winter tire once every year. The cost of a tire for the…
A:
Q: 3. Daily demand for tablets of amazon is normally distributed, with a mean of 100 and standard…
A: Given data: Daily mean demand=100 The standard deviation of demand=30 The time to replenish…
Q: Tyrelle's T-shirts purchases shirts for $4. If a markup of $5 per shirt is applied, the selling…
A: Markup refers to the difference between selling price and cost price of the product. However,…
Q: A manufacturing company produced 90000 units that sold for OMR 360000. The total variable costs for…
A: Units Produced = 90000 Revenue from sales = 360000 Per unit selling cost = 360000/90000 = 4 Total…
Q: Dr. Thompson makes three bean mixes for coffee shops located in the Austin. The three mixes,…
A: Given data, Stock and Cost Details Stock (pounds) Cost Cost/ pounds Arabica 6000 7500…
Q: for managing its data processing operation: continuing with its own staff, hiring an outside vendor…
A: When the expected value of a decision alternative is turned as the sum of weigh payoffs for the…
Q: A salesperson in a large bicycle shop is paid a bonus ifhe sells more than 4 bicycles a day. The…
A: Our task is to simulate n number of days and find the bonus earned by the salesman each day using…
Q: A company manufactures a component which sells for £33. The variable cost associated with its…
A: Here, There are two different questions, As per the guideline, I'm supposed to answer the first…
Q: Demand for an item is 1000 units per year. Each unit costs $20 and each order placed costs $10.…
A: Given data Annual demand (D) = 1000 units Unit cost = $20 Ordering cost (S) = $10 Holding cost =…
Q: The following information pertains to Emy Manufacturing Corporation's Product X: Annual demand…
A: given, Annual demand 33,750…
Q: Pierre's can bake the bread only in batches of a dozen loaves each. Each loaf costs 25¢ to make.…
A: Below is the solution
Q: A company has an annual demand for a product of 2000 units, a carrying cost of $20per unit per year,…
A: Given Information: Annual Demand (D) = 2000 units Before Set-up Reduction: Carrying Cost per unit…
Q: 3. Daily demand for tablets of amazon is normally distributed, with a mean of 100 and standard…
A: Here, the firm is following a periodic review policy, the review period is 30 days, considering the…
Q: You are thinking of opening a small copy shop. It costs $5000 to rent a copier for a year, and it…
A:
Q: The production rate is 2000 units per year. The demand is 200 units. The setup cost is $4000. The…
A: Economic order quantity (EOQ) is the optimal quantity that a company should buy to lower the costs…
Q: One item a computer store sells is supplied by a vendor who handles only that item. Demand for that…
A: Given data.Probability of at least 96% of not having a stock out ..Standard…
Q: A company is known to have 4 request periods in 1 year. In the first quarter year demand amounted to…
A: Find the given details below: Period 1 2 3 4 Total Forecast 750 900 1500 900 4050
Q: The Hilton Hotel at Dallas has 100 total rooms available for Dec 31. There are two types of…
A: Total number of rooms = 100 As per the demand distribution for business customers on Dec 31st,…
Q: Soup4U is a restaurant that sells soup. Soup4U makes production decisions using the news vendor…
A: A news vendor model is one of the core concepts in the supply chain and inventory management. Given,…
Q: A well-known multi-brand manufacturer uses the production lot sizing (EPQ) model to determine the…
A: Given- Current Production Batches = 5000 units Production cycle length = 10 days Cost of…
Q: A manufacturer has a production facility that requires 11,645 units of component JY21 per year.…
A: From the given information, Annual demand, D = 11,645 UNITS. Ordering cost, C = $140 Annual…
Q: You manage a production line that operates using a monthly production cycle. There are five…
A: Line capacity = 500 hrs. Product 1 Product 2 Product 3 Product 4 Product 5 Monthly Demand…
Q: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand…
A: Contribution Margin per unit = Sales price per unit - Variable cost per unit = $0.5 - $0.2 = $0.3…
Q: DaShu is a retailer store that sells T-shirts to its customers. Suppose the customer demand in a…
A: Mean customer demand = 1000 units Standard deviation = 300 units Service level = 90%
Q: Daily demand of a chemical at an oil refinery is normally distributed with a mean of 60 litres and a…
A: given,Average daily demand, d = 60 litres Std dev of daily demand, σ = 7 Lead time, L = 1 week = 7…
Q: A company uses the newsvendor model to manage its inventories and faces normallydistributed demand…
A: Inventory management refers to the process including ordering, storing and using a company's…
Q: A food processor purchases corn for use in its products. The firm uses 700 pounds of corn per week…
A: Optimal order quantity is the quantity that company should purchase so that their total inventory…
Q: 5. Snoblo, a manufacturer of snowblowers, sells four models. The base model, Reguplo, has demand…
A: Solution Following are the details of current sourcing one line Particulars Reguplo Other lines…
Q: A printing company anticipates using 40,000 reams of paper at a uniform rate over the next year.…
A: EOQ is the economic order quantity that the company should purchase every time they order so that…
Q: A certain medical device will result in an estimated $15,000 reduction in hospital labor expenses…
A:
Q: Dr. Thompson makes three bean mixes for coffee shops located in the Austin. The three mixes,…
A: Given data, Types of Beans Shipment amount Cost per shipment Arabica 6000 7500 Robusta…
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhoodstores. One…
A:
Q: What is the optimal weekly purchase quantity for the chocolate croissant? What is average inventory?
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Step by step
Solved in 2 steps with 1 images
- Consider a hardware supply warehouse that is contractually obligated to deliver 1000units a specialized fastener to a local manufaturing company each week. Each time thewarehouse places an order for these items from its supplier, an ordering and transporationfee off $20 is charged to the warehouse. The warehouse pays $1.00 for each fastener andcharges the local firm $5.00 for each fastener. Annual holding cosst iss 25% off inventoryvalue, or $0.25 per year. The warehouse manager would like to know how much to orderwhen inventory gets to zero.Assume that the warehouse works 50 weeks/year.The bookstore at Tech purchases jackets emblazoned withthe school name and logo from a vendor. The vendor sellsthe jackets to the store for $38 apiece. The cost to the bookstore for placing an order is $120, and the annual car-rying cost is 25% of the cost of a jacket. The bookstore manager estimates that 1700 jackets will be sold during theyear. The vendor has offered the bookstore the followingvolume discount schedule: Order Size Discount1–299 0%300–499 2%500–799 4%800 5% What is the bookstore’s optimal order quantity, given thisquantity discount information?The purchasing manager for the Atlantic Steel Company must determine a policy for orderingcoal to operate 12 converters. Each converter requires exactly 5 tons of coal per day to operate,and the firm operates 360 days per year. The purchasing manager has determined that the orderingcost is $80 per order and the cost of holding coal is 20% of the average dollar value of inventoryheld. The purchasing manager has negotiated a contract to obtain the coal for $12 per ton forthe coming year. If 5 days of lead time are required to receive an order of coal, how much coal should be on hand when an order is placed?
- Cooler Corporation is a manufacturer of cooling products. It purchases 14,400 units of a particular component (CK55) each year at a cost of $60 per unit. Cooler Corporation requires a 12% annual rate of return on investment. In addition, relevant carrying costs for insurance, material-handling, and breakage are $0.40 per unit per quarter, whereas warehousing rental cost is $12,000 per month. Relevant costs per purchase order are $144.00. Purchasing manager’s salary is $80,000 per year. Required: Calculate Cooler’s EOQ for CK55. Calculate Cooler’s total ordering and carrying costs. Assume that demand is uniform throughout the year and is known with certainty. The purchasing time is half a month. Calculate the reorder point for CK55.ANT Infra orders two kinds of precast items: A and B for use in its projects from two different suppliers. The precasts are needed throughout the entire 52-week year. Precast A are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. While, precast B is ordered from a supplier who delivers by every three weeks. Data for both precast items are as follows:Item Precast A Precast BAnnual demand 10,000 5,000Holding cost (% of item cost)20% 20%Order cost $150 $25Lead time 4 weeks 1 weekSafety stock 55 units 5 unitsItem cost $10.00 $2.00 a. Employ Q system for precast A and calculate the EOQ, the reorder point, total inventory cost? b. Employ P system for precast B and estimate the target level inventory and total inventory cost?Bold Vision, Inc., must purchase toner from a local supplier. The company does not wish to carry raw material inventory and therefore only purchases enough toner to satisfy the demand of each individual batch of cartridges. Each toner cartridge requires one pound of toner. The raw material supplier offers Bold Vision a purchase discount of $2.00 per pound if the company orders at least 2,000 pounds at a time. Should Bold Vision accept this offer and alter its toner purchase quantity?
- A department store uses a (Q, R) policy to control its inventories. Sales of a pocket FM radioaverage 1.4 radios per week. The radio costs the store $50.00, and fixed costs of replenishmentamount to $20.00. Holding costs are based on a 20 percent annual interest charge, and thestore manager estimates a $12.50 cost of lost profit and loss of goodwill if the radio is demanded when out of stock. Reorder lead time is 2 weeks, and statistical studies have shownthat demand over the lead time is accurately described by a Poisson distribution. Find the optimallot sizes and reorder points for this item.Consider a closed-loop supply chain subject to both finite product life cycle and limited component durability. The sales rate follows an isosceles trapezoid with T = 6 years, Q = 18000, and z = 2. The time interval between the sale of a product and its possible resale after being collected and remanufactured is 2 years. The maximum number of lives n is 2 for the product. Remanufactured and new items are perfect substitutes. Assume that Cman = 4, Creman = 1.5, Ccoll = 0.5, and Cdisp = 0.5. Calculate the average production cost difference ∆C (a) when the collection rate c is 1 and (b) when c is 0.5.Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost minimizing solution for this product each year? ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.
- You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.25 a copy. You sell a copy of the San Pedro Times for $1.00. Daily demand is distributed normally with mean = 250 and standard deviation = 50. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.a. How many copies of the San Pedro Times should you buy each morning?b. Based on part (a), what is the probability that you will run out of stock?A manager receives a forecast for next year. Demand is projected to be 600 units for the first half of the year and 920 units for the second half. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order. a.Assuming that monthly demand will be level during each of the six-month periods covered by the forecast (e.g., 100 per month for each of the first six months), determine an order size that will minimize the sum of ordering and carrying costs for each of the six-month periods. (Round your answers to the nearest whole number.) Period Order Size 1 – 6 months?_____units 7 – 12 months?_____units b.If the vendor is willing to offer a discount of $10 per order for ordering in multiples of 50 units (e.g., 50, 100, 150), would you advise the manager to take advantage of the offer in either period? If so, what order size would you recommend? (Round intermediate calculations to 2 decimal places.) Period Order Size 1 – 6 months?____ units 7 – 12 months?____…A manager must set up inventory ordering systems for two new production items, P34 and P35.P34 can be ordered at any time, but P35 can be ordered only once every four weeks. The companyoperates 50 weeks a year, and the weekly usage rates for both items are normally distributed. Themanager has gathered the following information about the items.Item P34 Item P35Average weekly demand 60 units 70 unitsStandard deviation 4 units per week 5 units per weekUnit cost $15 $20Annual holding cost 30% 30%Ordering cost $70 $30Lead time 2 weeks 2 weeksAcceptable stockout risk 2.5% 2.5%a. When should the manager reorder each item?b. Compute the order quantity for P34.c. Compute the order quantity for P35 if 110 units are on hand at the time the order is placed.