Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that Palmer can order the ink at a cost of $2 per gallon plus fixed ordering costs of $125 per order. The firm’s carrying cost is 20 percent of the inventory value, at cost. How much is the carrying cost per unit? * How much is the total inventory cost? *
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Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that Palmer can order the ink at a cost of $2 per gallon plus fixed ordering costs of $125 per order. The firm’s carrying cost is 20 percent of the inventory value, at cost.
How much is the carrying cost per unit? *
How much is the total inventory cost? *
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- Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that Palmer can order the ink at a cost of $2 per gallon plus fixed ordering costs of $125 per order. The firm’s carrying cost is 20 percent of the inventory value, at cost. How much is the holding cost? * How many number of orders are there in a year? *Abalos Appliance Store sells an average of 160 units per month. Each order the store places is for 300 units. The cost per unit is P5. The cost per order is P12. Carrying cost is P0.15 per dollar invested per year. The rate of return is 18 percent. The tax rate is 46 percent. Requirement: (a) What is the investment in average inventory? (b) What is the annual ordering cost?My Kitchen Delights (MKD), a regional producer ofgourmet jams and jellies, uses approximately 24,000 glass jarseach month during its production. Because of space limitations,MKD orders 5000 jars at a time. Monthly holding cost is $0.08 perjar, and the ordering cost is $60 per order. Th e company operates20 days per month.(a) What penalty cost is the company incurring by its presentreplenishment policy?(b) MKD would prefer to order eight times each month butneeds to justify any change in order size. How muchwould ordering cost need to be reduced to justify a lot sizeof 3000 jars?(c) If MKD can reduce its ordering cost to $30, what is theoptimal replenishment order quantity?
- A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 perorder. Annual carrying cost is $75 per bag.a. Determine the economic order quantity.b. What is the average number of bags on hand?c. How many orders per year will there be?d. Compute the total cost of ordering and carrying flour.e. If holding costs were to increase by $9 per year, how much would that affect the minimum totalannual cost?Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that Palmer can order the ink at a cost of $2 per gallon plus fixed ordering costs of $125 per order. The firm’s carrying cost is 20 percent of the inventory value, at cost. A. How much is the holding cost? B. How much is the ordering cost? C. How many number of orders are there in a year?Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of order-ing tape is $1, and carrying costs are 40 cents per roll a year. Lead time is three days. a. What is the EOQ?b. What ROP will provide a lead time service level of 96 percent?
- Please do not give solution in image format thanku Daily demand for Chandler's Footballs varies according to the normal distribution with a mean of 195 and a standard deviation of 12. The lead time is 3 days. If Chandler wants a 98.5% level of service, what should his reorder point be?Energyzer , a regional electronics retailer , estimates that sells 13 , 000 4-packs of batteries per year (or 250 per week). Each 4-pack of batteries costs the retailer $2.00; with a carrying cost rate of 32%; and ordering costs of $40.00 per order. a. Calculate the optimum order period—in terms of weeks , b. Calculate the economic order quantity PLEASE SHOW WORKA microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how much is delivered) and $1.20 per gallon. Annual holding cost is 35% of the price per gallon. Usage is 250 gallons/week. d) If order quantity is 2500 gallons, what is the sum of the ordering and holding costs PER GALLON? e) If orders are for EOQ amount, what is the annual cost of the inventory system as a percentage of the annual purchase cost?
- Maroons Medical Supplies, Inc. must order masks from its supplier in lots of 1 dozen boxes. Given the information provided below, complete the following table: Annual demand 26,000 dozen Cost per order placed P30 Carrying cost 20% Price per dozen P7.80 Order Size (Dozen) 250 500 1,000 2,000 13,000 26,000 Number of orders Average inventory Carrying cost Order cost Total cost 1. What is the EOQ? Thank you so much!Tata Company manufactures Toyota cars. It produces 250 cars a month. It buys the tires for cars from a supplier at a cost of 35 R.O per tire. The Company's inventory carrying cost is estimated to be 15% of cost and the ordering cost is 45 R.O per order. Calculate the EOQ What is the number of orders per year? Compute the average annual ordering cost? Compute the average inventory? What is the average annual carrying cost? Compute the total cost? Please answer completePlease do not give solution in image format thanku 3. SunValley Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering tape is $1, and carrying costs are 40 cents per roll a year. Lead time is three days. a. What is the EOQ? b. What ROP will provide a service level of 95 percent? c. What would be the ROP for the tape if the lead time has a standard deviation of 1 days?