a. What is the economic quantity for Ben to order? b. At what inventory level should he place an order?
Q: A grocer carries 9,300 different items in their store. In a normal week, demand occurs for 4,900 of…
A: Given- Retailer carries the item in a store= 9300 items Weekly demand = 4900 items
Q: Videoworld is a discount store that sells color televisions. The annual demand for color…
A: Q=2CODCcCs+CcCs=2×650×4004560+4560=142.21 Hence, the optimal order quantity is 142.21 sets.
Q: ABC Inc., purchases Widgets from an overseas supplier under a continuous review system. The average…
A: Given that: Average demand(d) = 300 Holding cost (H) = $0.25 Lead time(L) = 5 days Lead Time…
Q: Alocal retailer anticipates an annual demand 12000 units of a product. The retailer allows shortages…
A: Disclaimer- Since you have asked multiple questions we will solve the first question for you. If you…
Q: An electronics retailer carries a particular cellular telephone with the following…
A: a. The formula for determining the Economic order quantity, EOQ is EOQ = 2DSH where, D is annual…
Q: In a two-bin inventory system, the demand for three-inch lag bolts during the 2-week lead time is…
A: Given Lead Time = 2 weeks Demand = 53 units per week standard deviation of weekly demand = 5 units…
Q: XYZ Print Inc. uses plain paper for copying needs. Weekly demand for that paper follows a normal…
A: The expected on-hand inventory is the amount of product that a business anticipates needing in the…
Q: Mac-in-the-Box, Inc., sells computer equipment by mail and telephone order. Mac sells 1,200 flat-bed…
A: Given that, Annual demand = 1,200 unitsOrdering cost = $300Annual holding cost = 16% of item price
Q: Ime of 6 days. purchase cost is $31.4 per unit. The cost to place and process an order from the…
A: Given that: EOQ= 1053 units Unit Price = $31.4 Holding cost per unit (H)= 12.2% of 31.4 = 3.8308…
Q: A Mercedes dealer purchases vehicles for $20,000. The annual holding cost is estimated to be 25% of…
A:
Q: The manager would like to know what the probability is that a grass seed stockout will occur before…
A: Out-of-stock items, often known as stockouts, are described as the inability to purchase specified…
Q: Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory…
A: Given Unit cost = $10.75/bag Demand = 95 bags/week Order cost = $58/order Holding cost = 25%
Q: Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory…
A: Given d = 100 bags/ week With 52 weeks per year, Annual demand D = 100*52 = 5200 bags / year Order…
Q: The daily demand for Sunlight paint at the Rainbow Paint Store in East Ridge is normally…
A: The reorder point is nothing but the inventory level at which the new order is placed. The formula…
Q: he weekly demand for a product is 770 units. The standard deviation of daily demand is 10 units. The…
A: Safety stock is a phrase utilized by logisticians to define a level of excess stock that is stated…
Q: A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 75…
A: a.Calculate the EOQ for coffee beans given the demand or per year, given the…
Q: The manager of a depanneur on Ste-Catherine’s street sells 5 cases of Corona per day. The order…
A: The answer is as below:
Q: Demand during lead time for one brand of TV is normally distributed with a mean of 36 TVs and a…
A: Given that: Mean demand (d) = 36 TV's σ = 15 TV's Service Level = 90% ≈0.90
Q: A local retailer anticipates a daily demand of 50 units of a product. The retailers] allows…
A: Given- Daily demand = 50 units Number of days in a year = 300 Annual Demand D= 50*300 = 15000 units…
Q: Answer the following true or false.c. The newsvendor model does not include a fixed order cost
A: The answer is true.
Q: How long is the order cycle time? Now assume the manager does not use the EOQ model. Instead, the…
A: Order cycle refers to the processing of a particular route on the cycle through which the cycle gets…
Q: The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 350…
A: Optimal order quantity for highest price range = [ 2 x demand per annum x cost of ordering / cost of…
Q: Daily demand for a product is 50 units, with a standard deviation of 35 units. The review period is…
A: Given data Daily demand (d) = 50 units Standard deviation (σ)= 35 days Review period (R) = 5 days…
Q: First image is an example on how to do this exercise. Table one is a reference I need help to find…
A: Unit cost c =$8.00 per bag A number of operating weeks = 52 weeks per year, 6 days per week. Weekly…
Q: A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 60…
A: Given Annual Demand D= 12000 pounds (200x60) Ordering cost Co=$15 Holding Cost Ch=$3 per pound per…
Q: What would be the safety stock, the reorder point and the total cost if: a) There is a constant lead…
A: Annual Demand (D) = Weekly demand(d) × No. of weeks = 80 × 50…
Q: Red Lip Cherry (RLC) is a local retailer of cherries. During the cherry seasons, daily demand…
A: Given data, Average daily demand=100 pounds, standard deviation=10, The purchase cost per pound=12…
Q: A local gas station is open 7 days per week, 365 days per year. Sales of 10W40 grade premium oil…
A:
Q: Customers at Joe’s Office Supply Store demand an -average of 6000 desks per year. Each time an order…
A: Annual Demand = D = 6,000 desks per year Ordering Cost = O = $300 Holding Cost = H = 25% of $200 =…
Q: A subcontracting firm Gamma Pharmaceuticals Ltd. located in Western India dealing with generic…
A: answer: d) Using the fixed order quantity system to control inventory, EOQ is determined by using…
Q: What is the average inventory level if JTP uses an order quantity of 1,371 tires?
A: Demand is the total quantity of commodities for which the consumers are willing to purchase at…
Q: Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile…
A: Annual demand (D) = 10,821 units It is given that JTP uses an order quantity of 1,728 tires.…
Q: Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Jim recently acquired a designer shoe store in downtown silver spring. The former owner always…
A: Annual total cost using the old policy: Number of shoes per order=100 Holding cost=$12 Total cost:…
Q: A local boutique hotel purchases boxes of luxury soap using a periodic review system. The average…
A:
Q: 1. Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review…
A: Re-order level is the level at which the stock trigger to refill a particular inventory in an…
Q: The electrolyte drink for our beloved NMSU soccer team average normally distributed demand of 5…
A: The reorder point (ROP) can be defined as a degree of stock which triggers an activity to recharge…
Q: Mama Mia’s Pizza purchases its pizza delivery boxes from a printing supplier. Mama Mia’s delivers…
A: Given, Deman- 225 Order cost-12.50
Q: Braneast Airlines uses 500 taillight per year. Each time an order for taillights is placed, an…
A: Economic Order quantity (EOQ) is a inventory ordering method which helps to identify the optimal…
Q: KVS Pharmacy stocks a popular brand of over the counter flu and cold medicine. The average demand…
A: Instead of employing a reorder quantity calculation, many firms place orders depending on what they…
Q: Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile…
A: Find the Given Details below: Given details Demand (D) 8888 Units/year Carrying (Holding) cost…
Q: AV City stocks and sells a particular brand of laptop. Itcosts the firm $625 each time it places an…
A: Optimal order quantity per order = √2CO / I…
Q: ARP Engines is a producer of outboard motors and ships worldwide. The company has recently set up a…
A:
Q: A toy manufacturer uses 48,000 rubber wheels per year for its dump truck. The trucks are assembled…
A:
Q: During the last 5 weeks, demands for a certain SKU at a retailer were 7 units (5 weeks ago), 4…
A: Order up to level is when stock levels are periodically reviewed, and an amount of the item is…
Q: he weekly demand for a product is 770 units. The standard deviation of daily demand is 10 units. The…
A: From the given information, Weekly demand, D = 770 units. Standard deviation, S = 10 units. Lead…
Q: The carrying cost curve and ordering cost curve of NEKO Inc.’s inventory intersect at 3,500 units.…
A: Total inventory cost is the cost incurred to store, manage, and sell the inventory in the market.…
Q: A small local pharmacy, Tacky Pharm sells self-test kits for diabetic patients. These kits cost…
A:
Q: Sam's Cat Hotel operates 51 weeks per year, 6 days per week. It purchases kitty litter for $7.00 per…
A:
Gentle Ben's Bar and Restaurant uses 7,200 quart bottles of an imported wine each year. The effervescent wine costs $9 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $25 each time an order is placed, and holding costs are 40 percent of the purchase price. It takes six weeks for an order to arrive. Weekly demand is 144 bottles (closed two weeks per year) with a standard deviation of 40 bottles.
Ben would like to use an inventory system that minimizes inventory cost and will provide a 99 percent service probability.
a. What is the economic quantity for Ben to order?
b. At what inventory level should he place an order?
Step by step
Solved in 2 steps with 2 images
- Sam's Pet Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: ≻Demand=75 bags/week ≻Order cost=$55.00/order ≻Annual holding cost=25 percent of cost ≻Desired cycle-service level=80 percent ≻Lead time=4 weeks (24 working days) ≻Standard deviation of weekly demand=15 bags ≻Current on-hand inventory is 320 bags, with no open orders or backorders. Part 2 a. Suppose that the weekly demand forecast of 75 bags is incorrect and actual demand averages only 50 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $enter your response here higher owing to the error in EOQ. (Enter your response rounded to two decimal places.) a. What is the EOQ? What would the average time between orders (in weeks)? b. What should R be? c. An inventory withdraw…Please do not give solution in image formate thanku. Weekly demand for HP printers at a Sam's Club store is normally distributed, with a mean of250 and a standard deviation of 150. The store manager continuously monitors inventory andcurrently orders 1,000 printers each time the inventory drops to 600 printers. HP currentlytakes two weeks to fill an order. How much safety inventory does the store carry? What CSLdoes Sam's Club achieve as a result of this policy? What fill rate does the store achieve?Ex:. Return to the Sam's Club store in . Assume that the supply lead time from HP isnormally distributed, with a mean of 2 weeks and a standard deviation of 1.5 weeks. Howmuch safety inventory should Sam's Club carry if it wants to provide a CSL of 95 percent?At Dot Com, a large retailer of popular books, demand is constant at 20,400 books per year. The cost of placing an order to replenish stock is $75, and the annual cost of holding is $6.00 per book. Stock is received 6 working days after an order has been placed. No backorder is allowed. Assume 250 working days a year. **(Enter your response rounded to the nearest whole number.)** Dot Com's optimal order quantity is ______ books. What is the optimal number of orders per year? What is the optimal enterable quotation in working days quotation between orders? What is the demand during the lead time? What is the reorder Point? What is the inventory position immediately after an order has been placed?
- The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 350 baseballs per week. The team orders baseballs from Coopers-Town, Inc., a ball manufacturer noted for six-sigma-level consistency and high product quality. The cost to order baseballs is $100 per order and the annual holding cost per ball is 38 percent of the purchase price. Coopers-Town’s price structure is: Order Quantity Price per Unit 1–999 $7.50 1,000–4999 $7.25 5,000 or more $6.50 a. How many baseballs should the team buy per order? b. What is the total annual cost associated with the best order quantity? c. Coopers-Town, Inc., discovers that, owing to special manufacturing processes required for the Buck’s baseballs, it has underestimated the setup time required on a capacity-constrained piece of machinery. Coopers-Town adds another category to the price structure to provide an incentive for larger orders and thereby hopes to…Sam’s Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags.Demand = 90 bags/weekOrder cost = $54/orderAnnual holding cost = 27 percent of costDesired cycle@service level = 80 percentLead time = 3 weeks 118 working days2Standard deviation of weekly demand = 15 bagsCurrent on-hand inventory is 320 bags, with no open orders or backorders.a. What is the EOQ? What would be the average time between orders (in weeks)?b. What should R be?c. An inventory withdrawal of 10 bags was just made. Is it time to reorder?d. The store currently uses a lot size of 500 bags (i.e., Q = 500). What is the annual holding cost of this policy? Annual ordering cost? Without calculating the EOQ, how can you conclude from these two calculations that the current lot size is too large?e. What would be the annual cost saved by shifting from the 500-bag lot size to the…ABC Inc., purchases Widgets from an overseas supplier under a continuous review system. The average demand for a popular model is 300 units a day with a Lead Time standard deviation of 70 units. It costs $60 to process each order and there is a five-day lead-time. The holding cost for a widget is $0.25 per year and the company policy is to maintain a 98% service level. ABC operates 200 days per year. What is the additional cost in $ of holding the safety stock necessary to maintain the 98% service level? What service level in % does a reorder point of 1,570 imply?
- Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics.Demand 1D2 = 20,000 units/yearOrdering cost 1S2 = $40/orderHolding cost 1H2 = $2/unit/yearLead time 1L2 = 2 weeksCycle@service level = 95 percentDemand is normally distributed, with a standard deviation of weekly demand of 100 units.Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders.a. Calculate the item’s EOQ. What is the average time, in weeks, between orders?b. Find the safety stock and reorder point that provide a 95 percent cycle-service level.Ann Chovies, owner of the Perfect Pasta Pizza Parlour, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and holding costs are 4 cents per pound per day. Lead time for each order is 3 days, and the pepperoni itself costs $3.00 per pound.If she were to order 80 pounds of pepperoni at a time, what would be the maximum inventory? Multiple Choice 50 100 200 20 80Enrun Corporation expects to order 140,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $300 per order; the purchase price per chip is $20; and the firm’s inventory carrying costs is equal to 20 percent of the purchase price. (Assume a 360-day year.) What is the economic ordering quantity for chips? If Enrun holds a safety stock equal to a 30-day supply of chips, what is its average inventory level? Assume that Enrun holds a safety stock equal to a 30-day supply of chips. What is the maximum amount of inventory that Enrun will have on hand at any time, that is, what will be the inventory level right after a delivery is made?
- Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile tires. The yearly demand of a particular brand of time is about 8,888 units per year. JTP purchases these tires from a supplier. The ordering cost is $124 per order and the holding cost is $19 per tire per year. The supplier always deliver the shipment within 6 days after receiving a replenishment order from JTP. The company operates 250 days per year. Assume EOQ model is applicable. What is the optimal annual inventory cost for JTP? Use at least 4 decimal places.The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 350 baseballs per week. The team orders baseballs from Coopers-Town, Inc., a ball manufacturer noted for six-sigma–level consistency and high product quality. The cost to order baseballs is $100 per order and the annual holding cost per ball is 38 percent of the purchase price. Coopers-Town’s price structure is: Order Quantity Price per Unit 1–999 ........ $7.50 1,000–4999 ...... $7.25 5,000 or more ..... $6.50 a. How many baseballs should the team buy per order? b. What is the total annual cost associated with the best order quantity? c. Coopers-Town, Inc., discovers that, owing to special manufacturing processes required for the Buck’s base-balls, it has underestimated the setup time required on a capacity-constrained piece of machinery. Coopers-Town adds another category to the price structure to provide an incentive for larger orders and thereby hopes to reduce…Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile tires. The yearly demand of a particular brand of time is about 10,908 units per year. JTP purchases these tires from a supplier. The ordering cost is $112 per order and the holding cost is $17.8 per tire per year. The supplier always deliver the shipment within 9 days after receiving a replenishment order from JTP. The company operates 250 days per year. Assume EOQ model is applicable. What is the average inventory level if JTP uses an order quantity of 1,371 tires?
