Demand for an item is 16 units a week. The unit cost of each item $5,000, while the ordering costs from Malaysia is $1000. The lead time is around 4 weeks and holding costs are around 16%. What inventory policy would you recommend? b. What would be the optimal time between consecutive orders? c. The supplier is planning to increase the lead time to six weeks. How would your policy in part (a) change? How would your ordering costs and holding costs change and why? а.

Q: How much would be the number of orders to be placed in a year? *

A:

Q: Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units.…

A: Given: Demand = 1,000 units Ordering cost = $5 per unit Storage cost = $4 per unit

Q: Carrefour estimates an annual demand of a grocery product at 5400 kgs. It costs RO 100 to make and…

A: Level at which company should place the order is known as reorder point.

Q: Samuelson will produce 20,000 units in January using level production. If each unit costs $500 to…

A: Production = 20,000 Units Opening balance = 10000 Units Sales = 15000 Units Cost per unit = $500

Q: Manitoba Transport collects 75% of its monthly sales immediately and the rest at the end of the…

A: Break-Even Sales - Break-even sales defined as the sales at which the company covers only the…

Q: es 250 day

A: Minimum level of stock refers to the minimum amount of quantity of raw Material which is required to…

Q: Nowlin Pipe & Steel has projected sales of 19,600 pipes this year, an ordering cost of $5 per order,…

A: a. Economic Order Quantity = (2S0 / C)1/2 where, C = carrying cost per unit S = total demand in…

Q: Morgan Inc. predicts sales of 4,000 frames in May & 14,000 units in June. Target end of month…

A: Note : As per the policy, we are supposed to solve first three subparts at a time. Kindly repost the…

Q: A local retailer anticipates an annual demand 15000 units of a product. The retailer allows…

A: The inventory management aims to accomplish to reach satisfaction on the custom services…

Q: A Company estimates that its carrying cost is 20% of the purchase price and its ordering cost at $40…

A: Economic order quantity represents quantity that leads to minimum cost of the inventory.

Q: Croy Inc. has the following projected sales for the next five months: Month Sales in Units 3,850…

A: Direct materials required and cost of direct materials can be found out using the production…

Q: Croy Inc. has the following projected sales for the next five months:   Month Sales in Units April…

A: Budget means the expected value of future. Budget is not affected by the actual value as it is…

Q: Green Tees, an on line retailer of t-shirts, orders 100,000 t-shirts per year from its manufacturer.…

A:

Q: Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make…

A: In order to minimise the total inventory costs that includes ordering costs and inventory holding…

Q: SamaCell has a demand of 2,000 cells per year. The cost of each unit is $80, and the inventory…

A: Economic Order Quantity (EOQ) refers to the concept of estimating the ideal quantity that a business…

Q: A merchandiser plans to sell 13,500 units next month at a selling price of $110 per unit. It also…

A: Contribution Margin - Contribution Margin is the difference between Sales and Variable Cost.

Q: The monthly demand of GHI's sole product is 30,000 cases. Based on data analysis, the carrying cost…

A: Inventory: Inventory is a physical item of trade sold by suppliers during their accounting period.…

Q: The demand for a product of Carolina Industries varies greatly from month to month. The probability…

A: a) Carolina's Monthly order quantity = (300*0.15)+(400*0.25)+(500*0.35)+(600*0.25) = 45+100+175+150…

Q: Croy Inc. has the following projected sales for the next five months:   Month Sales in Units April…

A: Croy Inc.       Production Budget         April May June Expected Unit Sales…

Q: A company is presently ordering on the basis of an EOQ. The demand is 10,000units a year, unit cost…

A: EOQ (Economic Order Quantity):-EOQ is the minimum order quantity that one should order to minimize…

Q: Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and…

A: Inventory level at which business should place order is known as reorder point in business.

Q: What is BBOS’s total inventory cost per year,

A: The optimum units of any given product that must be ordered such that its ordering and holding…

Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…

A: Semi annual requirement = 39000 Units Annual requirement (A) = 39000*2 = 78000 Units Price per unit…

Q: Minmax Processing Company has an average requirement of 5 boxes of its product per week. It has been…

A: Lead Time is equal to time gap between placement of order & receiving the Material. When Lead…

Q: Nowlin Pipe & Steel has projected sales of 6,400 pipes this year, an ordering cost of $5 per order,…

A: The conceptual formula used:

Q: Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $90, unit variable…

A: Contribution Margin = ( Unit Sales Price - Unit Variable Cost ) x Number of units Net profit=…

Q: Massa Machine Tools expects Total sales of 14,000. The price per unit is $6. The firm estimates an…

A: Optimum order size can be calculated with the economic order quantity technique. Eoq is considered…

Q: Croy Inc. has the following projected sales for the next five months:      Month Sales in Units…

A: Budgeted production = Budgeted sales + Desired ending inventories - Beginning inventory

Q: Croy Inc. has the following projected sales for the next five months:   Month Sales in Units April…

A: Budgeted production means how much units needs to be produced to achieve sales target and keeping…

Q: Cahuilla Corporation predicts the following sales in units for the coming four months: Sales in…

A: Budgeted Production units :— It means estimated Units of Product Manufactured Or Produced. It is…

Q: Given: Peter Piper has projected sales of 72,000 pipes this year, ordering cost of P6 per order,…

A: Economic Order Quantity refers to optimal level of inventory being purchased by an entity while…

Q: how many weeks are there between each optimal order quantity?

A: Economic Order Quantity (EOQ) is the inventory level at which the company is able to minimize the…

Q: Croy Inc. has the following projected sales for the next five months: Month Salen in Unita 3,850…

A: Following are the solutions to given problems

Q: The annual demand for an item is 20,000 units. The cost to process an order is $25 and the annual…

A: Here, Economic Order Quantity when purchase Price is not constant. When Purchase Price is not…

Q: Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make…

A: In order to minimise the total inventory costs that includes ordering costs and inventory holding…

Q: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The…

A: Given: Optimal order quantity = 2,500 units Safety stock = 500 units Price per unit = P4 Annual…

Q: Ricky Orange’s annual demand is 12,500 units. Ordering cost is $100 per order. Holding cost is…

A: Per unit carrying cost=20%×$50=$10

Q: A company stocks an item that is consumed at the rate of 30 units each day. Every time an order is…

A: As per Bartleby guideline, if questions are interlinked then first three sub parts to be answered.…

Q: Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The…

A: Average inventory level =Optimal order quantity2=2,500 units2=1,250 units

Q: Month Expected Demand  Jul 1,000  Aug 1,200  Sep 1,400  Oct 1,800  Nov 1,800  Dec 1,800…

A: Step 1 Carrying costs are the various costs a business pays for holding inventory in stock.

Q: Faber Manufacturing, Inc., of St. Paul, Minnesota has an economic order quantity considering…

A: The maximum level of inventory is the maximum quantity of material which have to keep in store. We…