please solve all parts within 30 minutes. A. A newspaper is bought for Rs. 5 from ashopkeeper and sold at Rs. 10. Any unsoldnewspaper for the day can be salvaged atRs. 1.50 per paper. As per his experience sofar, demand for this newspaper had been50 on an average with SD 5 normallydistributed. What should be the order sizehe makes? B. Every week a retailer makes anorder for a particular furniture to a carpentershop. The carpenter takes 3 days to ship.The daily demand for that furniture is 5 onan average with SD 2. If the retailer wants to99% of the demand, what should be theorder size he need to make if he has 2 itemsin hand?

Find the Given details below: Given Details: Mean (Average Demand) 50 Newspapers Standard…

Answered: A. A newspaper is bought for Rs. 5 from…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Economic Order Quantity and Reorder PointFind the economic order quantity and the reorder point, givenAnnual demand ( D )= 1, 000 unitsAverage daily demand ( d¯ ) = 1, 000 ∕365ordering cost ( S ) = $5 per orde rHolding cost ( H ) = $1.25 per unit per yearLead time ( L ) = 5 daysCost per unit ( C ) =$12.50What quantity should be ordered?
Race One Motors is an Indonesian car manufacturer. Atits largest manufacturing facility, in Jakarta, the company producessubcomponents at a rate of 300 per day, and it uses these subcomponentsat a rate of 12,500 per year (of250 working days). Holding costsare $2 per item per year, and orde1ing (setup) costs are $30 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?
show work not done in excel Firm Y faces the following: Revenue per order = $10,000 750 orders/deliveries per year Net cost as a percent of revenue = 65% 80% of late deliveries redelivered; 20% cancelled Cost of redelivery = $300 Invoice deduction for redeliveries = $250 4. What is the total lost profit or cash flow from an 85% on-time delivery rate? 5. What is the total lost profit or cash flow from a 95% on-time delivery rate? 6. What is the percentage reduction in total lost profit or cash flow from this 10% increase in on-time delivery?
Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $35per delivery (no matter how much is delivered) and $1.20 per gallon. Joe’s annual holdingcost per unit is 35 percent of the price per gallon. Joe uses 250 gallons of malt per week.a. Suppose Joe orders 1000 gallons each time. What is his average inventory (in gal)?b. Suppose Joe orders 1500 gallons each time. How many orders does he place with hissupplier each year?c. How many gallons should Joe order from his supplier with each order to minimize thesum of the ordering and holding costs?d. Suppose Joe orders 2500 gallons each time he places an order with the supplier. Whatis the sum of the ordering and holding costs per gallon?e. Suppose Joe orders the quantity from part (C) that minimizes the sum of the orderingand holding costs each time he places an order with the supplier. What is the annualcost of the EOQ expressed as a percentage of the annual purchase cost?f. If Joe’s supplier only accepts…
A company stocks an item that is consumed at the rate of 35 units each day. Every time an order is placed for new supply, $ 105 must be paid. A unit inventory held in stock will cost $ 0.15. a) What is the economic order quantity (EOQ)? b) What is the cycle time for the EOQ? c) What is the total cost for the EOQ?
A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bagsa year. Preparing an order and receiving a shipment of sugar involves a cost of P 135.Annual carrying costs are P 630 per bag. The bakery operates 280 days per year.Lead time = 2 weeks.a. Determine the economic order quantity.b. What is the average number of bags on hand?c. When should the bakery order for more sugar?d. How many times per year will the bakery order for sugar?
For each of the following costs, indicate whether the cost would be an out-of-pocket carrying cost (C), or a cost of placing an order (P). If the item does not qualify for either of these categories, note that it as none of the above (N) Assume that wages vary with the level of work while salaries are fixed for a monthly or longer time period.1.Hourly fee for inventory audit. 2. Salary of purchasing supervisor.3. Costs to audit purchase orders and invoices, on a per-order basis.4. Taxes on inventory.5. Stockout costs.6. Storage costs charged per unit in inventory.7. Fire insurance on inventory.8. Fire insurance on warehouse.9. Obsolescence costs on inventory. 10. Shipping costs per shipment.
Q/ A stockiest has to supply 400 units of a product every Monday to his customers. He gets the product at Rs. 50/- per unit from the manufacturer. The cost of ordering and transportation from the manufacturer is Rs. 75 per order. The cost of carrying inventory is 7.5% per year of the cost of the product. Find:(a) Economic order quantity,(b) The total optimal cost.
A company stocks an item that is consumed at the rate of 20 units each day. Every time an order is placed for new supply, $ 100 must be paid. A unit inventory held in stock will cost $ 0.15. (a) What is the economic order quantity (EOQ)? (b) What is the cycle time for the EOQ? (c) What is the total cost for the EOQ? (d) What is the total cost if the order quantity is 300 more than EOQ? (e) What is the optimum number of orders (rounded to the closest integer) that the company has to place each year? Assume that the company has a standing policy of not allowing shortages in demand.
If D = 8,500 per month, S = $46 per order, and H = $2.00per unit per month, a) What is the economic order quantity? The EOQ is enter your response here units (round your response to the nearest whole number).
1. Which of the following costs do not come under inventory carrying cost calculation? a) Investment in a software for updating stock position online b) Investment in stores space c) Salaries of procurement personnel d) Cost of maintaining the inventory stocks 2. Which of the following will have lesser bullwhip effect in a supply chain? a) Supply Chain co-ordination b) Opening more stocking points closer to the point of consumption c) Empowering the lower echelons of the inventory to take decisions on fulfilling the demand d) All of the above 3. What is the effect of delayed differentiation strategy? a) The number of variants offered will be reduced b) The inventory carrying costs will come down c) Production Planning and Control will become more difficult d) Bullwhip effect will be more pronounced
PT Bulan Sabit is a company engaged in fan manufacturingair conditioner with the following production datai. Setup fee = $15ii. Inventory cost per fan per year = $ 125iii. Production capacity per day = 246 fansiv. Production time per fan = 2 daysv. Fan requirement per year = 20,000 fansvi. Safety stock = 1/2 day fan productionIf PT Bulan Sabit wants to implement Kanban, then calculate the needs of the companyas follows:a) Explain the definition and purpose of kanban b) Specify production order quantity c) Calculate the container kanban that must be provided by PT Bulan Sabit Assuming the time used is per year 50 weeks and 5 days per week

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