a) What is the economic order quantity? 306 units (round your response to the nearest whole number). b) What are the annual holding costs? $3365 (round your response to the nearest whole number). c) What are the annual ordering costs? $ 3364 (round your response to the nearest whole number).
Q: In 2017, Aurecon was appointed by the City of Ekurhuleni to design and construct rail line…
A: Project: Project is defined as “A project is an activity to meet the creation of a unique product or…
Q: Define ‘transparency’ and construct the case for greater transparency in the governance of the…
A: Transparency refers to the public disclosure of all relevant information in a manner that is clear,…
Q: Problem 12-5 (Algo) Garden Varlety Flower Shop uses 810 clay pots a month. The pots are purchased at…
A: Given data Monthly Demand (d) = 810 clay pots Annual demand (D) = Monthly Demand× No. of months in a…
Q: South Beach University is conducting an online exam. There are 1,200 students taking this exam.…
A: Little’s Law: Little’s Law is defined as the long-term average number of customers…
Q: A company trades with a number of items and the management is interested in classifying the items…
A: Find the Calculation methods below: Step 1: Find annual usage: (Annual demand * Unitary cost) Step…
Q: ABC INVENTORY CLASSIFICATION A company trades with a number of items and the management is…
A: A' items – items account for 85% of the annual consumption value of the items (asked 82% so taken up…
Q: vering the following critical aspects; 1. Identify the risks to start preparing a risk register and…
A: All undertakings have a certain amount of risk, which presented both possibilities and hazards for…
Q: A regional bank training center has the physical ability to handle 1,300 participants. However,…
A: Design Capacity of training center = 1300 participants Effective capacity = 1100 participants Actual…
Q: On a toll road, there are 2 lanes for drivers to pay their toll. Customer arrival times are…
A: A queueing node is often described and categorized using Kendall's notation (or occasionally Kendall…
Q: 7. (Graduate Students Only) The MJK Manufacturing Company must produce two products in sufficient…
A: In aggregate planning, to determine the optimal production plan, the production schedule can be…
Q: The following table lists the tasks and preceding tasks for a project. Draw the activity-on-node…
A: Activity diagram based on the given activity table:
Q: Solve the following linear programming problem using simplex method. A printing company makes…
A: Let x denote the better quality poster, Y be the intermediate quality and z be the poorer quality…
Q: If the part fails and a spare is not available, it will take The cost for idle equipment is $500 per…
A: The optimal order quantity is the number of units a company needs to order to get the best possible…
Q: Need help please show formula how to solve please. Thanks A newly formed company must decide on a…
A: Choosing the best location based on the expected profit is the most suitable solution for given…
Q: The following data give the ages (in years) of all six members of a family. 58 51 28 27 22 12…
A: The given data is 58, 51, 28, 27, 22 and 12 to calculate the mean. Population Mean is the value of…
Q: Matilda had an appointment at the dentist's office, but couldn't make it on time due to traffic. By…
A: Introduction: Service is a set of activities through which an organization or a company achieve…
Q: Please answer part D to the below four part question. I've included the answers for the first three…
A: Please note that the provided answers are not relevant to the actual questions. here I have solved…
Q: What are the importance of Quality control department for the national and international…
A: The quality control department is the one who is responsible for the quality of products and…
Q: Planning for quality is necessary but often forgotten or dismissed function on a project. Discuss…
A: A project quality plan is one of the important component of the project management. At the…
Q: WK Qu. 7-14 A manufacturer produces both widgets... A manufacturer produces both widgets and…
A: Decision variable: Suppose-W = No. of widgets to be manufacturedG = No. of gadgets to be…
Q: What does it mean for something to be improved inside a system?
A: You may create the life you want by adamantly mending the systems in your life and putting the…
Q: Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a…
A: Find the Calculations methods below: Total Weighted Score = ∑ (Weights * Site Scores) Given details:…
Q: 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in…
A: Find the total cost equations below: Location x = Fixed cost (x) + (Variable cost (x) * Units (x))…
Q: What is supplier management in operation management ?
A: Introduction : The practice of managing and improving communications with an organization's vendors…
Q: How would you control the project budget? What techniques would you use?
A: NOTE: We are allowed to do one question only. Budget control is the process of monitoring and…
Q: integration and how well do the Woolworths internal functions integrate. Make use of practical…
A: The phrase "internal supply chain" describes the series of business operations that culminate in the…
Q: Customers filter into a record shop at an average of 1 per minute (exponential interarrivals) where…
A: The formula to calculate this in a multiple-server case is as follows: Ls=Lq+λμ
Q: Advise the new junior salesman as to what globalisation is.
A: Globalization is basically everything carried out to arrive at business sectors with various…
Q: I only need help with part C,D,E. I already got the answer for A and B. Thank you in advance…
A: Given data: Average rarrival rate λ = 3 units in 8 hours = 38 units per hour = 0.375 units per…
Q: Discusses design and innovation at Dyson Appliances Limited (DAL). As a purchasing manager, advice…
A: A purchasing manager has very high responsibility that s/he must take very seriously. The job is…
Q: Cesar Rego Computers, a Mississippi chain of computer hardware and software retail outlets, supplies…
A: Ordering cost is the cost that the company incurred during the purchase and transporting the…
Q: chain analysis. Critically discuss the primary value chain activities ( Inbound logistics,…
A: The systems that a business or organization employs to generate revenue are combined into a value…
Q: 1. The most-desired management skill is good communication, followed by a sense of vision, honesty,…
A: The media selection framework refers to the matrix that helps the decision-maker to select the…
Q: A manager wishes to build a 3-sigma range chart for a process. The sample size is five, the mean of…
A: Given x bar =45 r bar = 7.90 D3 = 0 D4 = 2.115
Q: Mr. John produces a special type of shoes on an assembly line. The process involves eight different…
A: To ensure the smooth flow of work in a product line, assigning tasks to workstations with…
Q: ii) Prepare a Flow Process Chart from the following data: a) Need a computer? b) New or current one?…
A: A flow process chart is a diagram that illustrates the sequential steps in a process. It is often…
Q: Answer: 1. What is the economic order quantity? Q=. 7 (round to nearest whole number) 2. If average…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Abstract: The extract reports that in November 2017, the department of water affairs and sanitation…
A: Social responsibility is a term that is widely used in business management where individual…
Q: Should tipping in restaurants be mandatory?
A: In the United States, almost every restaurant expects a tip after a meal, despite the fact that it…
Q: Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in…
A: Find the Calculations below: Total cost = (Fixed cost + (Number of units * Variable Cost)) Cost…
Q: You have a new team member on board and she is new to the profession of project management. How…
A: In project management, A work breakdown structure - is a tool mainly used to specify & group a…
Q: Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply…
A: The transportation method is a special kind of linear programming. It is used to determine the…
Q: Many companies say that their goal is to provide quality products or services. What actions might…
A: As per the case, the company XYZ is the hotel company that focuses on quality services and win the…
Q: How can I effectively collect the necessary information to write a comprehensive operations manual?
A: An operations manual is a document that consists of standard operating procedures and rules and…
Q: You are employed as a quality manager at Mr Price in Durban. Critically analyse how you would…
A: Total quality management (TQM) is a method of management that focuses on long-term success through…
Q: Calculate the average inventory
A: EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…
Q: List ways in which the critical component of the procurement cycle could be corrupted
A: Procurement: Procurement process contains the series of actions to collect the goods…
Q: Which of the following is likely to be data rather than information? a. Top 3 suppliers with the…
A: Data: Data is a collection of unprocessed, raw facts and information, such as text, observations,…
Q: 6. The Childfair Company has three plants producing child push chairs that are to be shipped to four…
A:
Q: Mr. John produces a special type of shoes on an assembly line. The process involves eight different…
A: Necessary information: The following information is required to balance the assembly line. these are…
Step by step
Solved in 5 steps
- Your firm uses a continuous review system and operates 52 weeks per year. One of the Stock-Keeping Units (SKUs) has the following characteristics:Demand = 20000 units/year = 385 units/weekOrdering cost = $40/orderHolding cost = $2/unit/yearService level = 95 percentz=1.65Lead time = 2 weeksDemand is normally distributed, with a standard deviation of weekly demand of 100 units. a)Calculate the item's EOQ. b)Find the safety stock and reorder point that provide a 95 percent service level. c)For these policies, what are the annual costs of (i) holding the cycle inventory and (ii) placing orders?The annual demand for sugar at a local soft drink company is normally distributed with a mean of 800 tons and a standard deviation of 25 tons. The sugar sells for OMR 500 each ton, and the annual inventory holding cost rate is 10%. Ordering costs are OMR5 per order. The delivery time for sugar is 5 working days. Assume that there are 250 working days in a year. 1) Evaluate the fill rate B for a safety stock of 5 tons. 2) What is the expected number of units short per year? 3) Compare the level of safety stock for each policy a=B=0.95.Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? A. P8,160 B. P5,280 C. P5,760 D. P2,400
- Southeastern Bell stocks a certain switch connectorvat its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. Southeastern estimates its annual holding cost for this item to be $25 per unit. The cost to place and process an order from the supplier is $75. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. a) Find the economic order quantity. b) Find the annual holding costs. c) Find the annual ordering costs. d) What is the reorder point?The annual demand for the Super Thrive brand plant food manufactured by Cumberbatch and Dunst Indoor Plants Company is 120,000 pounds. The annual holding cost (also known as carrying charge) is $0.05 per pound, and Operations Manager Kirsten Benedict has calculated the cost of setting up machinery for making the plant food to be $20. 1) What is the annual holding (carrying) cost for the EOQ that you calculated? 2) What is the annual setup cost for the EOQ that you calculated? 3) Compare the total cost of inventory management (holding + setup cost) for the two quantities (5,000 and the EOQ you calculated) and comment on the difference. Based on your knowledge of the idea behind EOQ, what explains the differences (in words – no need to reconcile the exact differences quantitatively). Write three to five sentences in response to this question.Norris Harrell’s Computer Store in San Fernando sells a printer for $200. The annual demand for this is 600 units, with a standard deviation of 1.5 units daily. The holding cost is $20, while the cost of ordering is $60 per order. Currently the company is ordering 12 times per year. There are 250 working days per year and the lead time is 10 days. a. Given the current policy of ordering, what is the total ordering and holding costs? b. If the company uses the absolute best inventory policy, what would be the total ordering and holding costs?
- Briefly explain five of the assumptions leading to the basic economic order quantity model (EOQ) The Star Equipment Company purchases 54,000 bearing assemblies each year at a unit cost of $40.00. The holding cost is $9.00 per unit per year, and the ordering cost is $20.00. What is the economic order quantity? How many orders should be placed per year? If the lead time is one (01) month, what is the re-order point for the assemblies?A local artisan uses supplies purchased from an overseas supplier. The ownerbelieves the assumptions of the EOQ model are met reasonably well. Minimization ofinventory cost is her objective. Relevant data, from the files of the credit firm, are annualdemand (C) = 240 units, ordering cost (B) = 42 MU/order, and holding cost = 4MU/unit/year.a) How many should she order at one time?b) How many times per year will she replenish its inventory of this material?c) What will be the total inventory costs associated with this material? Please mention formulas and do it in detail so I can understand.3. A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 1.5 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal backorder (shortage) level in units? Round - up to the nearest integer ?? a. 633 b. 1132 C. 1450 d. 860 e. 895 f. None is correct
- Happy Pet, Inc., is a large pet store located in LongBeach Mall. Although the store specializes in dogs, it a lso sellsfish, turtle, and bird supplies. The Everlast Leader, a leather leadfor dogs, costs Happy Pet $7 each. There is an annual demand for6,000 Everlast Leaders. The manager, Stephan Wagner, has determinedthat the ordering cost is $20 per order and the carrying cost,as a percentage of unit cost, is 15%. Happy Pet is now consideringa new supplier of Everlast Leaders. Each lead would cost only$6.65, but, in order to get this discount, Happy Pet would have tobuy shipments of 3,000 at a time. Should Happy Pet use the newsupplier and take this discount for quantity buying?EOQ, reorder point, and safety stock Alexis Company uses 937units of a product per year on a continuous basis. The product has a fixed cost of $44 per order, and its carrying cost is $4 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate daily usage.) c. Determine the reorder point. d. Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity.Dave's Sporting Goods sells Mountain Mouse freeze-dried meals. Dave's uses a continuous review system to manage meal inventories. Suppose Mountain Mouse offers the following volume discounts to its customers: 1−950 meals: $6.50 per meal 951 or more meals: $4.50 per meal. Annual demand is 2,900 meals, and the cost to place an order is $23. Suppose the holding cost is $1.50 per meal per year. How many meals should Dave's order at a time? Part 2 Dave's Sporting Goods should order ______ meals at a time to take advantage of the lower cost per unit. (Enter your response rounded to the nearest whole number.)