CPG Bagels starts the day with a large production run of bagels. Throughout the morning additional bagels are produced as needed. The last bake is completed at 3 pm, and the store closes at 8 pm. It costs approximately $0.56 in materials and labor to make a bagel. The price of a fresh bagel is $2.29. Bagels not sold by the end of the previous day are sold the next day as "day- old" bagels for $0.15 each. CPG Bagels uses the Newsvendor model to management the inventory of the bagels. The critical ratio- Report the answer without the percentage sign and keep one decimal in your answer. For example, if your answer is 0.9232 (92.32%), report 92.3 in your answer.
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- The table below provides demand data for 11 days (days 10-20 for the current year) for one product for the next 4 questions. The previous order was for 300 units at the end of day 9. The lead time is a constant two days. At the beginning of day 10 the inventory level is 450 units. Orders are made at the end of a day. Suppose inventory is managed with a reorder point system where Q=300 and the reorder point is 250. Day Demand Inventory 10 120 11 150 12 120 13 100 14 80 15 80 16 60 17 60 18 60 19 40 20 80 1) When is the next order? end of day ________ 2) How large is the next order? ________ 3) When is the subsequent order (after that above)? end of day _______ 4) How large is that order? _________. CPG Bagels starts the day with a large production run of bagels. Throughout the morning, additional bagels are produced as needed. The last bake is completed at 3 p.m. andthe store closes at 8 p.m. It costs approximately $0.20 in materials and labor to make a bagel. The price of a fresh bagel is $0.60. Bagels not sold by the end of the previous day are sold the next day as “day old” bagels in bags of six for $0.99 a bag. About two-thirds of the day-old bagels are sold; the remainder are just thrown away. There are many bagel flavors, but for simplicity, concentrate just on the plain bagels. The store manager predicts that demand for plain bagels from 3 p.m. until closing is normally distributed with a mean of 54 and a standard deviation of 21. a. How many bagels should the store have at 3 p.m. to maximize the store’s expected profit (from sales between 3 p.m. and closing)? (Hint: Assume day-old bagels are sold for $0.99/6 = $0.165 each; that is, don’t worry about the fact that…Please do not give solution in image formate thanku. A given product has an expected demand of 240 units per month, with a standard deviation of 70 units per month. Leadtime is 0.5 months. Customer service level (CSL) has been set so that we have a value of k=1.28. We want to manage this product's inventory using a (R, S) periodic review policy. We plan to order every 2 months (R = 2 months). Using the k value from above, what is the order up to level, S, for this policy? Give your answer rounded to the closest integer. Since orders are placed every 2 months, and the demand is variable, the order quantities are not identical. But we can estimate an average order size. What is the expected average order size for the policy described above? Under this policy, how many orders are placed per year? Placing each order costs $100. What is the annual ordering cost?
- Ardie Corporation uses 30,000 units. Each order placed is for 1,500 units. The stockout units is 300. Management is willing to accept a stockout probability of 40 percent. The stockout cost per unit is P3.20. What does the total stockout cost? choose the letter of the correct answera. P2,680.00b. P3,680.00c. P4,680.00d. P5,680.00e. P7,680.00Suppose that an organization is engaged in the manufacturing and sales of a seasonal product. Based on a sales forecast of 1000, 500, 500, and 2000 per quarter, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $7 per unit per quarter, what is the annual cost of carrying inventory? Assume that the opening and ending inventories are zero. (With steps)Please do not give solution in image format thanku A company produces sandals in four different patterns for summer. The demand for all four patterns is seasonal and normally distributed. Each of the four patterns has an expected demand of 10,000 pairs with a standard deviation of 4,000 pairs. Currently, all patterns are produced before the start of the season. Production cost is $20 per pair, and they are sold for a wholesale price of $36 per pair. Any unsold sandal at the end of the season is sold at discounted price of $15 per pair. It costs $1 per pair to hold the sandals in inventory for the entire season if it does not sell. The company is considering the postponement of printing the pattern of the sandals. This will require the base sandals to be made in advance (identical for each of the four models) and the final patterns to be printed later. This will increase production cost of sandals to $22. 5 per pair. What is the optimal cycle service level before postponement? (choose…
- Please complete the sup part: e,f and g. 1.B&H needs to decide how to manage its inventory of cameras. The demand for cameras at B&H is 200 cameras per week. Each time that B&H places an order for a new shipment of cameras, it must pay $80 in fixed processing fees. A camera costs B&H $60 to purchase. The cost for B&H to hold a camera in its store for one week is $4. Assume that the lead time for the delivery of a camera is 0 weeks.a. Suppose that B&H places orders for cameras in quantities of 50 cameras at a time and places a new order for cameras each time that it runs out. Draw a graph showing the number of cameras that B&H has on-hand in inventory at each point in time up until the time when it places its fourth-order. Label the points in time at which B&H places a new order. Assume that B&H places its first order for 50 cameras on day 0.b. Suppose again that B&H places orders for 50 cameras at a time. What will be B&H’s average holding…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.You were asked to assist with optimising the stock ordering and holding process for a company that sells car batteries. As part of the process, you need to decide the optimal order size to minimise associated costs. You are given the following information: • The batteries cost R400 each. • Sales volumes are constant at 600 batteries per month. • The lead time from order to delivery is 14 days. • It costs R360 for every order to be processed. It is calculated that it costs R5 to store a battery per month. 4) Calculate the optimal total costs.
- The following information pertains to Emy Manufacturing Corporation's Product X: Annual demand 33,750 units Annual cost to hold one unit of inventory P15 Setup cost (or the cost to initiate a production run) P500 Beginning inventory of product X 0 At present, the Company produces 2,250 units of Product X per production runt for a total of 15 production runs per year. The company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product X. If the EOQ model is used, the economic lot size is a.2,250 units. c. 2,250,000 units. b.1,500 units. d. P1,500.XYZ company produces staplers and other items. The production cost per unit is $8 and the cost of setting up the production line for this is $60. The annual holding cost rate is 30%. The company works 250 days per year. The production rate for this product is 120 per day. If the annual demand is 20,000 units, Which batch size should the company use? What is the minimum monthly cost? iii. What is the total production time allocated to this product annuallyWorld’s Greatest Coffee EOQ Problem A natural food store carries a brand of coffee called World’s Greatest Coffee. The following data shouldbe used in your calculations.Demand/Sales = 10 cases of coffee per week (you will need to convert this to an annual amount)Ordering Cost = $12 per orderCarrying Charge = 18% per yearUnit Cost = $75 per case Answer the following questions and be sure to show your computations. You can use whatever symbolyou need for square root, if typing in Word.1. How many cases should be ordered at a time? (This number will be the EOQ)2. How often should the coffee be ordered?3. What is the annual cost or ordering the coffee? What is the annual cost of carrying the coffee?And what is the total cost (ordering and carrying costs added together)?4. Name three reasons or factors that might cause the firm to order a larger or smaller amountthan the EOQ. Scoring – 20 possible pointsSection Possible PointsQuestion 1 – EOQ computation 4Question 2 – Frequency of…