Calculate EOQ from the following? Consumption during the year = 600 units Ordering cost Rs. 12 per order. Carrying cost 20% Selling Price per unit Rs. 20
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A: Given that: D = 44000 I = $0.75 S = $8 C = 12%
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A: The detailed solution is given in Step 2. Safety stock = 332.72 or 333 chairs
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- 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!The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually. The wheat must be purchased in multiples of 2,000 bushels. Ordering costs, which include grain elevator removal charges of P3,500, are P5,000 per order. Annual carrying costs are 2 percent of the purchase price of P5 per bushel. The company maintains a safety stock of 200,000 bushels. The delivery time is 6 weeks. 1. What is the EOQ? 2. At what inventory level should an order be placed to prevent having to draw on the safety stock? 3. What are the total inventory costs, including the costs of carrying the safety stock? 4. The wheat processor agrees to pay the elevator removal charges if Strawberry Bread will purchase wheat in quantities of 650,000 bushels. Would it be to Strawberry Bread’s advantage to order under this alternative?RCR Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires 5-day lead time. The ordering cost is P25 per order and the carrying cost per unit is 10% of purchase price. (EOQ is 2,400 units). Use 360 days. Determine the following: a. Annual demand
- 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? Please include/fill the table and solve for EOQ. Thank you so much!The mythical Own Distributors has an annual demand of 2,000 units for itshandheld security wands. The average cost of the handheld security wand isUS$140. Carrying cost is 18% of the unit cost of the security wand. Orderingcosts are US$30 per order. If the company orders in quantities of 500 or more,it can get a 6% discount on the unit cost of the security wand. Should the OwenDistributors take the quantity discount?A local TV repairs shop uses 36,000 units of a part each year (A maximum consumption of 100 units per working day). It costs RM20 to place and receive an order. The shop orders in lots of 400 units. It cost RM4 to carry one unit per year of inventory. Calculate total annual ordering cost Calculate total annual carrying cost Calculate total annual inventory cost Calculate the Economic Order Quantity Calculate the total annual cost inventory cost using EOQ inventory Policy How much is the saving if using EOQ? Compute re-ordering point assuming the lead time is 3 days.
- 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?The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually. The wheat must be purchased in multiples of 2,000 bushels. Ordering costs, which include grain elevator removal charges of P3,500, are P5,000 per order. Annual carrying costs are 2 percent of the purchase price of P5 per bushel. The company maintains a safety stock of 200,000 bushels. The delivery time is 6 weeks. What is the EOQ? What are the total inventory costs, including the costs of carrying the safety stock? The wheat processor agrees to pay the elevator removal charges if Strawberry Bread will purchase wheat in quantities of 650,000 bushels. Would it be to Strawberry Bread's advantage to order under this alternative?EOQ is 1,500 units based on annual demand of 15,000 units. The ordering cost os P 25 and carrying cost is 0.3333. Find the Total Ordering Cost per year:
- Suzuki is a company that manufactures motorcycles. It produces 450 motorcycles a month. It buys tyres for motorcycles from Dunlop at a cost of $20 per tyre. The company’s inventory carrying cost per tyre is estimated to be 15% of the cost per tyre. The cost per order is calculated at 250% of the cost per tyre. Rquirement: i) Calculate the EOQ. ii) Determine the number of orders per year? iii) Compute the total cost.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 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 lead time service level of 96 percent?Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values. Part 2 a) What value of Z should be applied? ▼ 1.28? 2.06? 1.04? or 1.65? Part 3 b) How many drives should be carried as safety stock? ___________ units (round your response to the nearest whole number). Part 4 c) What is the appropriate reorder point? _________ units (round your response to the nearest whole number).