a) What is the economic order quantity? The EOQ is Ounits (round your response to the nearest whole number). b) How does your answer change if the holding cost doubles? The EOQ isO units (round your response to the nearest whole number). c) What if the holding cost drops in half? The EOQ is units (round your response to the nearest whole number).
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Can you assist me with Chapter 12 Question 3. Please show the steps it's easier to follow along instead of an excel spreadsheet. Thank you
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- Items purchased from a vendor cost $250 each, and the forecast for next year’s demand is 2,000 units. The optimal order size is 100. The firm operates 52 weeks next year and lead time is 3 weeks. It costs $5 every time an order is placed for more units, and the storage cost is $2 per unit per year. What is the number of orders per year? a.35 b.20 c.22 d.25 e.5Banana Inc. a Company that markets skin care products . The annual demond is 2400 units and ordering cost is 10 per order . The holding cost per year is 0.30 .Amount of the working days of the is 250 days in a year , Lead time of the order is 2 days . a. What is the optimal order size? b. What is the optimal number of orders per year? c. What is the optimal number of days between orders? d. What is the annual inventory cost? e. If the lead time were 2 days, what would be the reorder point? f. For what value of ordering cost would 1000 units of order size be optimal? g. Determine how often the firm should order. h. Determine the size of each order ı. At what price should the firm order?You are managing a company that stocks and distributes hardware. Thecompany employs two purchasing agents who receive combined salaries of$90,000. They process 6,000 purchase requests per year. Average inventoryin storage is $600,000, and the total cost of running the warehouse is$200,000. You are told that the company purchases 5,000 hammers per yearat a cost of $5.34 per hammer.a. Using the economic order quantity (EOQ) formula, how many hammersshould be ordered at one time?b. If the hammer vendor stated that it would charge $5.00 per hammer if youordered 200 or more at a time, what should you do?
- Sharp, Inc., a company that markets painless hypodermic needles to hospitals, would like to reduce its inventory cost by determining the optimal number of hypodermic needles to obtain per order. The annual demand is 1,000 units; the setup or ordering cost is $10 per order; and the holding cost per unit per year is $.50. If D increases to 1,200 units, what is the new Q *? If Sharp has a 250 day working year, find out what is the number of Orders (N) What is the expected time between orders What is the total cost? 2. Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,000 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 10% of the items in inventory are A items, 35% are B items, and 55% are C items. She would like to set up a system in which all A items are counted monthly (every 20 working days), all B items are counted quarterly (every 60 working days), and all C items are…If D = 8,500 per month, S = $46 per order, and H = $2.00 per unit per month, Part 2 a) What is the economic order quantity? The EOQ is 625625 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 enter your response here units (round your response to the nearest whole number).Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 305 per day, and it uses these subcomponents at a rate of 12,500 per year (of 250 working days). Holding costs are $2 per item per year, and ordering costs are $32 per order. a) What is the economic production quantity?b) How many production runs per year will be made?c) What will be the maximum inventory level?d) What percentage of time will the facility be producing components?e) What is the annual cost of ordering and holding inventory?
- Fursan Inc. needs 310 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it takes 14 work days to receive it. The annual holding cost is 15 % of purchase price. The price RO 1 per kg. The company is operating 6 days per week. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer Select one: a. 200 b. 175 c. 181 d. 188Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand = 36 units per day Average lead time = 50 days Item unit cost = $70 for orders of less than 400 units Item unit cost = $68 for orders of 400 units or more Ordering cost = $45 Inventory carrying cost = 25% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time. Calculate EOQ if unit cost is $70 and $68. (Note: These EOQs do not need to be feasible in theirprice range.) (Round up your answers to the next whole number.) EOQ Unit cost at $70 units Unit cost at $68 units Calculate annual ordering costs for each alternative? (For the first value, use your rounded EOQ from Part a. For the second value, use the lowest feasible order quantity needed to qualify for that price level. Round your answers to 2 decimal places.) Annual Ordering Cost Unit cost at $70 Unit…Dalia, the office manager of a desktop publishing outfit, stocks replacement toner cartridges for laser printers. Demand for cartridges is approximately 30 per year and is quite variable (Le., can be represented using the Poisson distribution). Cartridges cost $100 each and require three weeks to obtain from the vendor. Dalia uses a (Q, r) approach to control stock levels (a). If Dalia wants to restrict replenishment orders to twice per year on average, what batch size Q should she use? If she wants to ensure a service level (i.e., probability of having the cartridge in stock when 2 out of 2 needed) of at least 98 percent, what reorder point r should she use? (Hint: Use Table 2.6.(b). If Dalia is willing to increase the number of replenishment orders per year to six, how do Q and r change? Explain the difference in r.
- The annual demand for a product is 14,500 units. The weekly demand is 279 units with a standard deviation of 85 units. The cost to place an order is $32.00, and the time from ordering to receipt is six weeks. The annual inventory carrying cost is $0.20 per unit. a. Find the reorder point necessary to provide a 95 percent service probability. (Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places.) b. Suppose the production manager is asked to reduce the safety stock of this item by 55 percent. If she does so, what will the new service probability be? (Use Excel's NORM.S.DIST() function to find the correct probability for your computed z value. Round "z" value to 2 decimal places and final answer to 1 decimal place.)Gamin Inc. produces various GPS devices with a wide assortment of different models for its customers. One item, RC1 is very popular. Keen of keeping its stock under control, a decision is taken to order only the optimum economic quantity, for this item, each time. You have the following information. Annual demand (units) 115,200 Purchase price per unit $ 300 Carrying/Holding costs per unit $ 8 Cost per order $ 200 Required: a)Fill the blanks in the following table using the above data. b)Determine the EOQ using the equation method and calculate the holding, ordering cost & their total cost at the EOQ level and also plot the graph at the EOQ level showing the numbers . c)Garmin Inc. has been offered a 2 per cent discount on the cost if it places orders in quantities of 19,200. Discuss whether the company should accept the discount and place larger orders, show your workings. No. of orders 1 10 20 30 90 120 Order size…Garden Variety Flower Shop uses 870 clay pots a month. The pots are purchased at $3.60 each. Annual carrying costs per pot are estimated to be 40 percent of cost, and ordering costs are $25 per order. The manager has been using an order size of 1,250 flower pots. a.What additional annual cost is the shop incurring by staying with this order size? (Round your optimal order quantity to the nearest whole number. Round all other intermediate calculations and your final answer to 2 decimal places. Omit the "$" sign in your response.) Additional annual cost$_____? b.Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,250)? (Use the rounded order quantity from Part a. Round your final answer to the nearest whole percent. Omit the "%" sign in your response.) About ____% of the storage space would be needed.