I need the help with this question. 10. A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 poundsannually. The beans are purchased from a local supplier for $2.40 per pound. Thecoffeehouse estimates that it costs $45 in paperwork and labor to place an order forDTOthe coffee, and holding costs are based on a 20 percent annual interest rate.tud jona. Determine the optimal order quantity for Colombian coffee.b. What is the time between placement of orders?ç. What is the average annual cost of holding and setup due to this item?based

A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 annually. The beans are purchased from a local supplier for $2.40 per pound coffeehouse estimates that it costs $45 in paperwork and labor to place an c the coffee, and holding costs are based on a 20 percent annual interest rate. a. Determine the optimal order quantity for Colombian coffee. b. What is the time between placement of orders? What is the average annual cost of holding and setup due to this item

A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 annually. The beans are purchased from a local supplier for $2.40 per pound coffeehouse estimates that it costs $45 in paperwork and labor to place an c the coffee, and holding costs are based on a 20 percent annual interest rate. a. Determine the optimal order quantity for Colombian coffee. b. What is the time between placement of orders? What is the average annual cost of holding and setup due to this item

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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Skinnerís Fish Market buys fresh Boston bluefish daily for $5.60 per pound and sells it for $9.80 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $3.80 per pound. Daily demand can be approximated by a normal distribution with a mean of 105 pounds and a standard deviation of 24 pounds. 1. What inventory model should be used to determine the order quantity to maximize the total expected proÖt? Why? 2. What is the service level under the optimal order quantity? 3. How much fresh Boston blueÖsh should Skinnerís Fish Market order so as to maximize the total expected proÖt?
Exercise 2: The demand per year (D) for product X is 12,100 units. The costs of placing an order (S) are $4.50. The unit cost (C) of the item is $25.00. The maintenance cost (H) per unit per year is 30% of the item's cost. 1. Use the economic order quantity (EOQ) model to determine: *Optimal quantity to order* The expected number of orders*Optimal time between orders*The total annual cost of maintaining that optimal amountNOTE: Show calculations of how you arrived at each amount 2. Answer, what are the potential benefits of using EOQ analysis for inventory management? How can you help businesses strike a balance between inventory holding costs and ordering costs?
1) What is the total demand of an enterprise with an economic order quantity of 1,500 units, a cost of 11.250 TL for each order, and 75 TL for one unit of inventory?a) 20,000b) 17,500c) 7,500d) 12,500f) 2,500 2) What is the total inventory cost of this business?a) 200,000b) 239,000c) 185,250d) 168,750e) 218,500
A) In supply management, logistic management become an important process. As part of logistic management, explain with relevent examples how is the trucking industry doing to improve efficiency. B) Describe ABC inventory analysis in one sentence identify 3 policies based upon the results of an ABC analysis
1.An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. Theannual demand is approximately 1,400 batteries. The supplier pays $32 for each batteryandestimates that the annual holding cost is 30 percent of the battery's value. It costs approximately$25 to place an order (managerial and clerical costs). The supplier currently orders 140batteriesper month. Determinetheordering, holding, andtotal inventory costs forthe currentorderquantity. Determine the economic order quantity (EOQ). How many orders will be placed per year using the EOQ? Determine the ordering, holding, and total inventory costs for the EOQ. Howhas ordering cost changed? Holding cost? Total inventory cost?
Berry Computer is considering moving some of its operations overseas in order to reduce labor costs. In the United States, its main circuit board costs Berry $75 per unitto produce, while overseas it costs only $65 to produce. Holding costs are based on a20 percent annual interest rate, and the demand has been a fairly steady 200 units perweek. Assume that setup costs are $200 both locally and overseas. Production leadtimes are one month locally and six months overseas.c. Might considerations other than cost favor local over overseas production?
At Dot Com, a large retailer of popular books, demand isconstant at 20,400 books per year. The cost of placing anorder to replenish stock is $35, and the annual cost of holdingis $6 per book. Stock is received 5 working days after an orderhas been placed. No backordering is allowed. Assume 250working days a year.a. What is Dot Com’s optimal order quantity?b. What is the optimal number of orders per year?c. What is the optimal interval (in working days) betweenorders?
An organization manufactures supplies for landscaping companies which has an annual demand of 16,000. The cost of storing each unit is $2.5/year and $50 to make an order. Say the company has 300 days of annually, answer the following questions: a. What is the optimal order quantity? b. How many orders in a year? c. How many days between orders? d. How much is the total inventory cost?
b. The average daily demand for watermelons from Trinbago Super Farmers Limited (TSFL) is 90units, with a standard deviation of 10 units. The review period is 28 days and the lead time is 7days. Management has set a policy of satisfying 95 percent of the demand from items in stock. Atthe beginning of the review period, there are 185 units in inventory. (i) How many units of watermelons should be ordered?
If D = 8,500per month, S = $46per order, and H = $2.00per unit per month, Part 2 a) What is the economic order quantity? The EOQ is 625 units (round your response to the nearest whole number). Part 3 b) How does your answer change if the holding cost doubles? The EOQ is 442 units (round your response to the nearest whole number). Part 4 c) What if the holding cost drops in half? The EOQ is enter your response here units (round your response to the nearest whole number).
3) The Omnigroup stocks and sells Kipor generators. The firm gathered the following information from its Kathmandu office: Demand = D = 19,500 units per year Ordering cost = S = $25.60 per order Holding cost = H = $4.40 per unit per year The firm wants to calculate the: a) EOQ for the Kipor generators. b) Annual holding costs for the Kipor generators. c) Annual ordering costs for the Kipor generators. Hint: EOQ = square root of (2DS/H) Annual Holding Cost = (Q/2) H Annual Ordering Cost = (D/Q) S
Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Period Regular Time Overtime Subcontract Demand Forecast 1 30 15 5 40 2 30 15 5 45 3 30 20 5 50 Initial inventory 20 units Regular-time cost per unit $100 Overtime cost per unit $160 Subcontract cost per unit $200 Carrying cost per unit per month $4 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Part 2 Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $enter your response here (enter your response as a whole number).