Barksdale Biscuits is a small manufacturer of gourmet dog biscuits and uses anaverage of 6,400 pounds of flour per week and works 50 weeks per year. Barksdalebuys flour at $0.20/lb delivered. It costs them $75 to process an order. They use20% of the purchase price for flour to calculate the annual holding cost.Calculate the economic order quantity for flour for Barksdale Biscuits.Your Answer:

Given, Weekly demand = 6400 pounds / week Number of weeks / year = 50 Annual Demand D = 6400*50 =…

Answered: Barksdale Biscuits is a small…

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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Rocky Mountain Tire Centre sells 20,000 tires of a particular type per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20. per tire if fewer than 500 tires are ordered, $18. Per tire if more than 500 but fewer than 1,000 tires are ordered and $17. per tire if 1,000 or more tires are ordered. How many tires should Rocky Mountain order each time it places an order? Quantity Unit Price 1-499 $20. 500-999 $18. 1000 & over $17 Based on available information, lead time demand for CD-ROM drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. What value of Z should be applied? How many drives should be carried as safety stock?
1. David and Beth Sheba run a health food store. Their top selling item is called Heavenly Kelp. The annual demand for this is 3200 units, and demand is constant throughout the year. The cost of placing an order is $100, while the holding cost per unit per year is $4. How many orders per year should be placed if they wish to minimize their total cost ? If you want to be eligible for partial credit, give an idea as to how you arrived at that number?
A company would like to classify its inventory systems using ABC Inventory classification system. The rules for ABC dassification are STRICTLY applied such that 80% cumulative budget is assigned to A class inventory items. The next 15% cumulative budget is assigned to B class inventory items, and Only 5% of the cumulative budget is assigned to class inventory itemsThe inventory items are XYZ1, XYZ2, XYZ3and respectively. The Annual demands (units per year) for these items are 290,457159, and 577 respectively. Also, the corresponding per unit prices are 19 33, 126and respectively measured in OMR. Which items (among XYZ1, XYZ2, XYZ3, and XYZ4) are classified as Adass inventory
Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year.The purchase price is $20 per tire if fewer than 500 tires are ordered, $18 per tire if 500 or more-but fewer than 1,000- tires a re ordered, and $17 per tire if I ,000 or more tires areordered.a) How many tires should Rocky Mountain order each time it places an order?b) What is the total cost of this policy?
A store sells 100,000 tablet PCs every year. Each tablet PC costs $(159) and the store has an annual holding cost of (39)%. a. For what fixed cost per order would an order size of 50,000 units be optimal? b. For what fixed cost per order would an order size of 1,000 units be optimal? c. What are the annual total inventory costs for these policies
9. A local retailer anticipates an annual demand 12000 units of a product. The retailers allows shortages for that product, and these shortages are backordered at a rate of 3 OMR per unit backordered. The cost of ordering is 300 OMR whereas , the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year . What is the optimal backorder (shortage ) level in units? Round -up to the nearest integer a. 633 b. 1550 C. None is correct d. 860 e. 775 f. 895
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jeweler purchases silver for use in its products. The firm uses 190 grams of silver per week and purchases silver for $0.52 per gram from a supplier. Each time the firm orders silver from the supplier, the firm must pay a $11 order processing charge. The firm's annual holding cost percentage is 38%. Do not round intermediate calculations. Assume there are 52 weeks in a year and round your answer to two decimal places. If the jeweler orders 1,950 grams of silver with each order, what is the sum of the annual holding and ordering costs? dollars Please do fast ASAP fast
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8. A local retailer anticipates an annual demand 12000 units of a product. The retailer allows shortages for that product, and these shortages are backordered at a rate of 4 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal maximum inventory level? Round - up to the nearest integer ? a. 1987 b. 1789 c. 1960 d. None is correct e. 1898

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