1 Consider the demand for a cellphone model. Assume K-$450 and h=$3week124demand495540900660600720a) Determine the ordering policy using EOQ method and calculate costb) Determine the ordering policy using least unit cost method and calculate costc) Determine the ordering policy using the Wagner-within method

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Answered: Consider the demand for a cellphone…

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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CU Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price break and other data for the problem. Price copper $ .81 per pound up to 2,499 pounds .80 2,500-4,999 pounds .78 5,000 pound or greater Annual demand 51,000 pounds per year Holding cost 30 % per unit/yr. Of the price of copper Ordering cost $ 30 Which quantity should be ordered?
CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and other data for the problem: Price of copper $ 0.79 per pound up to 2,999 pounds $ 0.78 per pound for orders between 3,000 and 5,999 pounds $ 0.76 per pound for orders 6,000 pounds or greater Annual demand 50,000 pounds per year Holding cost 20 percent per unit per year of the price of the copper Ordering cost $ 30 Which quantity should be ordered?
A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to 5,999,$4.90 each; and 6,000 or more, $4.85 each. Ordering costs are $50, annual carrying costs per unitare 40 percent of purchase cost, and annual usage is 4,900 pulleys. Determine an order quantitythat will minimize total cost.
Problem 20-39 (Algo) CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and other data for the problem: Price of copper $ 0.84 per pound up to 2,499 pounds $ 0.83 per pound for orders between 2,500 and 4,999 pounds $ 0.81 per pound for orders 5,000 pounds or greater Annual demand 54,000 pounds per year Holding cost 25 percent per unit per year of the price of the copper Ordering cost $ 30 Which quantity should be ordered? Quantity_____________pounds
The maintenance department of a large hospital uses about 816 cases of liquid cleanser annually. Ordering costs are $12, carrying costs are $4 per case a year, and the new price schedule indicates that orders of less than 50 cases will cost $20 per case, 50 to 79 cases will cost $18 per case, 80 to 99 cases will cost $17 per case, and larger orders will cost S16 per case. Determine the optimal order quantity and the total cost Show your result on diagram with order quantity on X axis and cost on Y axis.
4 In the EOQ model, determining the optimal order quantity requires us to ______. a increase number of orders along with quantity ordered at any time b strike a balance between quantity and quality of materials ordered c strike a balance between ordering and holding costs d increase number of orders depending on the volume discounts provided 6 The total cost in the EOQ is ______. a insensitive to minor deviations in the order quantity from the EOQ amount b sensitive to minor deviations in the order quantity from the EOQ amount c insensitive to major deviations in the order quantity from the EOQ amount d sensitive to deviations in the order quantity from the EOQ amount by more than 20% 7 Sales and operations planning deal with ______ decision-making. a strategic b tactical c operational d weekly
AV City (Problem 13-1) assumed with certainty that the or-dering cost is $625/order and the inventory carrying cost is $130/unit/year. However, the inventory model parametersare frequently only estimates that are subject to somedegree of uncertainty. Consider four cases of variation inthe model parameters as follows: (a) Both ordering costand carrying cost are 10% less than originally estimated;(b) both ordering cost and carrying cost are 10% higherthan originally estimated; (c) ordering cost is 10% higherand carrying cost is 10% lower than originally estimated;and (d) ordering cost is 10% lower and carrying cost is 10% higher than originally estimated. Determine the opti-mal order quantity and total inventory cost for each of the four cases. Prepare a table with values from all four casesand compare the sensitivity of the model solution tochanges in parameter values.
A company has a chance to reduce their inventory ordering costs by placing larger quantity orders using the discount schedule below. What should their optimal order quantity be if this company purchases this single inventory item with an e-mail ordering cost of $4, an annual holding cost rate (per unit) of 2% of the price/unit, and an annual demand of 10,000 units? Order quantity (units) Price/unit ($) 0 to 2,499 1.20 2,500 to 3,999 1.00 4,000 or more 0.98
If the following data is known in determining the Quantity Discount with EOQ - Demand rate = 100.000 - Ordering Cost = 5000 - Holding/Carrying cost = 600 Price Range LOWER UPPER PRICE 1 1 1000 1000 2 1001 1500 900 3 1501 3000 800 4 3001 3500 700 5 3501 3750 650 6 3751 4000 600 Based on the data provided, determine the optimal order quantity and total cost for this case! 2 1001 1500 900 3 1501 3000 800 4 3001 3500 700 5 3501 3750 650 6 3751 4000 600
The demand for a certain product is 33.33 units per day. The holding cost is known to be $ 0.067 per unit per day and the shortage cost is $ 0.33 per unit per day. Historical data shows that the demand during the lead time is normal distribution with mean 3 and standard deviation 0.5. The optimal ordering policy / day =
Suppose that the EOQ is 100, average annual demand is1,000 units, and the lead time demand is a random variablehaving the distribution shown in Table 15.a What value of SLM1 corresponds to a reorder pointof 25?b If we wanted to attain a 95% value of SLM1, whatreorder point should we choose?c If we wanted an average of at most two stockouts peryear, what reorder point should we choose? Lead TimeDemand Probability10 16 15 14 20 14 25 112 30 14
The demand for a certain product is random. It has been estimated that the monthly demand of the product has a normal distribution with a mend of 390units. The unit price of product is ETB 25. Ordering cost is ETB 40 per order and inventory carrying cost is estimated to be 35 percent per year. Calculate economic order quantity (EOQ).

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