Calculate the avergare inventory and the annual holding cost as well as calculate the total annual cost of inventory and economic order quantity
Q: A product is ordered once each year, and the reorder point without safety stock (dL) is 100 units.…
A: Safety Stock Safety stock is a concept used to describe a degree of additional stock held to…
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A: Given that: Annual Demand, D = 1000 Lead Time, LT = 1 month Standard Deviation, σ = 69.82 Service…
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A: The information provided as follows:
Q: d) Assume that management has specified that no more than a 1% risk during stockout is acceptable.…
A: Note: As per the Bartleby norms, only the first three parts have been asnwered. Reorder point is…
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One…
A: THE ANSWER IS AS BELOW:
Q: Hayes electronics assumed with certainty that the ordering cost is $450 per order and the inventory…
A: a) $450 ordering cost per order $170 inventory carrying cost per unit per year D = annual demand…
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A: The detailed solution is given in Step 2.
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A: Hi, we are supposed to answer 3 subparts at a time. Since you have not mentioned which subpart to…
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A: Answer a: Data given: D = Days operational 270 days A = Annual Demand 2970…
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows…
A: Economic order quantity is the optimum quantity which should be ordered in order to have minimum…
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A: Item Demand Per unit price Revenue Revenue % Cumulative XYZ4 577…
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A: Given: Production rate R = 150 housings/month Cost of each housing = $85 Set up cost for beginning…
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One…
A: THE ANSWER IS AS BELOW:
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: A company stocks an item that is consumed at the rate of 30 units each day. Every time an order is…
A: Economic order quantity is the optimal quantity that the business needs to buy the inventory to…
Q: Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The…
A: Given data; Carrying cost 15 $ per kilo per year Stockout cost 70 $ per kilo Reorder point…
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailer allows…
A: Given: D = 12000 S = 200 OMR H = 1 OMR
Q: JAL Trading is a Hong Kong manufacturer of electroniccomponents. During the course of a year it…
A: Every business has to maintain certain level of inventory to meet the requirements of its customer.…
Q: A hypermarket store sells a popular soft drink with a constant annual demand of 24,000 cases. While…
A: Given- Annual demand (D) = 24,000 cases of soft drinksOrdering cost (S) = $25Holding cost (H) =…
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One…
A: Given data: Monthly average demand, d = 290 Standard deviation of monthly demand, s = 75 Annual…
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A: Note: - For a multiple subparts question we can answer only up to three subparts. So we will answer…
Q: The Demand for the 50 Kg Maize meal bag at Shoprite is 4000 units per month, Shoprite incurs a fixed…
A:
Q: Colours Galore buys a standard type of paint in 50 litres containers at a price of R800 per…
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Q: Given this information: Expected demand during lead time = 300 units Standard deviation of lead time…
A: The reorder point refers to the point at which an organization realizes the inventory drop at some…
Q: Marigold Corp. sells 2,750 dim-night bulbs per year, and places orders for 670 of these bulbs at a…
A: To calculate the safety stock,first have to calculate no: of order Marigold estimates a 60% chance…
Q: Henrique Correa's bakery prepares all its cakesbetween 4 A.M. and 6 A.M. so they will be fresh when…
A: Given that: Mean demand (d) = 25 Standard deviation (s) = 4 Cost of a cake (c) = $6 Selling price…
Q: A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an…
A: Formula:
Q: The home appliance department of a large department store is using inventory models to control the…
A: Given that: Daily demand = 150 Number of days in year = 365 Ordering cost(S)= $28 Item cost(C) =…
Q: A supplier for an electronics store has introduced quantity discounts to encourage larger order…
A: Here, we would determine the EOQ or Economic order quantity value, Given the data, Monthly…
Q: Each year, Y Company purchases 20,000 units of an item that costs P 640 per unit. The cost of…
A: Given data is, Number of units purchased(ending inventory) = 20,000 Beginning inventory = 0 Item…
Q: One of the products stocked at Weiss’s paint store, mentioned in Problem 14, is a certain type of…
A:
Q: Colours Galore buys a standard type of paint in 50 litres containers at a price of R800 per…
A: A Small Introduction about Inventory Management Inventory management alludes to the most common…
Q: The Fast Service Food Mart stocks frozen pizzas in a refrigerated display case. The average daily…
A: Economic order quantity is calculated for taking decisions with respect to Fixed demand and variable…
Q: The Swedish company Rossons Sport sells skis endski-equipment. They purchase skis at a price of $260…
A: c) Service level indicates vendor to fulfill the demand of x% of customers. To fulfill the demand of…
Q: A department store sells 10 000 cameras per year. The store orders cameras from a regional…
A: Economic order quantity (EOQ) is a company's optimal order quantity that undervalues its total costs…
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhood stores One…
A: Given data, Monthly average demand, d = 280Stdev of monthly demand, s = 70Annual demand, D = 280*12…
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailer allows…
A: Annual demand = 12000 unit Backorder rate= 3 OMR Ordering cost= 200 OMR Holding cost=1 OMR per unit…
Q: A company purchases wood for use in its products. The firm uses 760 pounds of wood per week and…
A: Eoq is the economic or optimal order quantity that company should purchase to minimise its total…
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One…
A: Given data Ordering cost = $100 per order Monthly demand (D) = 300 Lead time = 5 days Monthly…
Q: A manufacturing company produces furniture products. The company operates 300 working-day per year.…
A: Given - Annual Demand (D) = 12,000 units Holding Cost (H) = SR 0.10 Setting-up cost (S)= SR 50…
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailers allows…
A: ANSWER IS AS BELOW:
Q: A distributor of computer monitors purchases the monitors from an overseas supplier under a…
A: The target inventory level needed to achieve a 90% service level will be the safety stock required…
Q: An electronic manufacturer in San Francisco receives its motherboards from a supplier in Hong Kong.…
A: Given Data Lead time (LT) = 3 weeks Cost = $16 per units Holding cost (H) = $0.5 per week…
Q: Andy's Auto Dealership (AAD) is a family-run auto dealership selling both new and used vehicles. In…
A: given, AAD total sell = 160 vehicles new vehicles represent = 60% of sales
Q: A department store uses a (Q, R) policy to control its inventories. Sales of a pocket FM…
A: Given data, Sales of pocket FM radio average is 1.4 radio per week. Radio Cost of the stores =…
Q: Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items.…
A: Average weekly demand (d) = 100 units Standard deviation of weekly demand (d) = 20 units Review…
Q: A firm experiences demand with a mean of 100 units per day. Lead time demand is normally distributed…
A: Daily Demand = 100 units per day Mean = 1000 units Standard Deviation = 200 units Holding Cost = H =…
Q: PC World stocks and sells a particular brand of personal computer. It costs the store £ 460 each…
A: The optimal order quantity is the quantity that the company need to buy so that its annual inventory…
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- Colours Galore buys a standard type of paint in 50 litres containers at a price of R800 per container and 19200 of these containers are used each year. The stock controller estimates that the cost of placing and receiving a order is R450. The controller's estimate of the annual cost of carryinh this product is R6 per container. Suppose Colour Galore were to order 800 containers per order placed during the year. Calculate the avergare inventory and the annual holding costAn electronics retailer sells laptops at a steady rate of 7,500 per quarter. It costs the manufacturer $350 tomake each laptop, and they charge $400/laptop to the retailer. The manufacturer produces the laptop at asteady rate that matches demand, and incurs a fixed cost of $2,800 to fulfill each retail order. Both theretailer and the manufacturer have an annual holding cost percentage of 20%. The retailer places 10orders with the laptop manufacturer each quarter (which it determined from an EOQ calculation). Whatare the retailer’s and manufacturer’s costs under this current setup, as well as the total supply chain cost?An electronics retailer sells laptops at a steady rate of 7,500 per quarter. It costs the manufacturer $350 tomake each laptop, and they charge $400/laptop to the retailer. The manufacturer produces the laptop at asteady rate that matches demand, and incurs a fixed cost of $2,800 to fulfill each retail order. Both theretailer and the manufacturer have an annual holding cost percentage of 20%. The retailer places 10orders with the laptop manufacturer each quarter (which it determined from an EOQ calculation). Whatare the retailer’s and manufacturer’s costs under this current setup, as well as the total supply chain cost?What quantity discount should the manufacturer offer the retailer in order to minimize the total supplychain costs? Under this quantity discount, what are the new retailer and manufacturer costs? Does theretailer choose to use the quantity discount? PLEASE SHOW ALL CALUCALTIONS/EXCEL MODEL
- A Mercedes dealer purchases vehicles for $20,000. The annual holding cost is estimated to be 25% of the dollar value of inventory. The dealer sells an average of 500 cars per year. He believes that demand is backlogged, but estimates that if he is short one car for one year, he will lose $20,000 in future profits. Each time the dealer places an order for cars, the ordering cost amounts to $10,000. What is the (s, Q) ordering policy that results in a 90% CSL?ABC firm uses roughly 3,400 pounds of chemical dye a year. Currently, the firm purchases 300 pounds per order and pays P120.00 per pound. The supplier has just announced that orders of 1,000 pounds or more will be filled at a price of P80.00 per pound. The manufacturing firm incurs a cost of P4,000.00 each time it submits an order and assigns an annual holding cost of 17% of the purchase price per pound. a. Determine the order size that will minimize the total cost.b. If the supplier offered the discount at 1,500 pounds instead of 1,000 pounds, what order size would minimize total cost?Parasol Systems sells motherboards for personal computers. For quantities upthrough 25, the firm charges $350 per board; for quantities between 26 and 50,it charges $315 for each board purchased beyond 25; and it charges $285 eachfor the additional quantities over 50. A large communications firm expects torequire these motherboards for the next 10 years at a rate of at least 140 peryear. Order setup costs are $30 and holding costs are based on an 18 percentannual interest rate. What should be the size of the standing order?
- Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost minimizing solution for this product each year? ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.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 policiesA Mercedes dealer must pay $20,000 for each carpurchased. The annual holding cost is estimated to be 25%of the dollar value of inventory. The dealer sells an averageof 500 cars per year. He believes that demand is backloggedbut estimates that if he is short one car for one year he willlose $20,000 worth of future profits. Each time the dealerplaces an order for cars, ordering cost amounts to $10,000.Determine the Mercedes dealer’s optimal ordering policy.What is the maximum shortage that will occur?
- The Swedish company Rossons Sport sells skis endski-equipment. They purchase skis at a price of $260 per pair andsales price is $420. Skis not sold this season can be sold early nextseason at a discounted price, $200. In addition they estimate thestock holding cost between seasons to be $25 per pair of skis.Past sales shows that demand per season is normal distributedwith a mean of 459 pairs and a standard deviation of 56.a) Calculate the shortage and overage cost per pairb) Advice Rossons Sport how many pair of skis they should purchasec) What is the service level?Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 6 weeks, and the lead time for receiving the materials ordered from its wholesaler is 3 weeks. Weekly demand is normally distributed, with a mean of 100 units and a standard deviation of 20 units.a. What is the average and the standard deviation of demand during the protection interval?b. What should be the target inventory level if the firm desires 97.5 percent stockout protection?c. If 350 units were in stock at the time of a periodic review, how many units should be ordered?Please do not give solution in image format thanku Deltic sells this component for 55 per unit with a 4-month delivery lead time. Assume Deltic covers all transportation and related processing until delivery. TCX’s demand forecast for the upcoming selling season (12 months) is a normal distribution with mean 13500 and standard deviation 3736,4 . TCX sells each unit, after integrating their proprietary software, for 135. Assume that TCX uses a holding cost rate of 25 %, and any leftover units can be sold for 30 on average. Due to the long lead time and high minimum order quantity required, TCX is planning on a single order from Deltic to meet their needs in the next year. How many of these components should TCX order? Calculate the resulting expected annual profits for TCX.