Demand for your product averages 10,000 units per year. Placing an order costs $500. The holding cost per unit per year is 15% of the cost of the item, and items cost $6.00. What is the EOQ?
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Q: snip
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A: Economic order quantity is the optimum quantity which should be ordered in order to have minimum…
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Q: in a standard ABC analysis, 50 to 60 percent of the number of items in inventory but only about 10…
A: In a standard ABC analysis, 50 to 60 percent of the number of items in inventory but only about 10…
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A: The concept used here is Economic order quantity model.
Q: 5. A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows…
A: Below is the solution:-
Q: A certain type of computer costs RO 1000, and the annual holding cost is 20% of the value of the…
A: The economic order quantity, or EOQ, is a metric that is used to determine the optimal order…
Demand for your product averages 10,000 units per year. Placing an order costs $500. The holding cost per unit per year is 15% of the cost of the item, and items cost $6.00. What is the EOQ?
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- The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.A cable company needs to stock universal remote devices. They expect annual demand to be 1000 and ordering cost is $50. The annual holding cost is 25% of the unit price per unit. In addition, supplier has provided below price schedule. How much quantity would you order to minimize the cost? Show calculations to justify your answer. Quantity Unit Price 1-200 $15.00 201 - 399 $14.00It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 × 14 BSW. A perpetual inventory system has been used, so you examine this as well as other records and come up with the following data: Cost per tire $35 each Holding cost 20 percent of tire cost per year Demand 1,000 per year Ordering cost $20 per order Standard deviation of daily demand 3 tires Delivery lead time 4 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 98 percent. Assume the demand occurs 365 days per year. Determine the order quantity. Note: Round your answer to the nearest whole number. Determine the reorder point. Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the…
- The Annual demand of a product is 50000 and ordering cost is 7000 per order and EOQ is 10000 units. At optimum annual inventory, what is the total yearly holding cost?The demand rate for a product is 100 units per month. Each time an order is placed, a fixed cost of $40 is incurred. The purchase price for the product is $12 and its selling price is $20. The inventory holding cost rate is 20% per year. If the order lead time is 4 months, what is the reorder level of the (s, Q) policy?A big box store sells a lawn mower. Annual demand for the lawn mower is 600 units. The ordering cost per order of lawnmowers is $20. The annual holding cost per unit is $15. Assuming the store uses the EOQ as the order size, what would be the total annual ordering cost for the lawnmower? PLEASE WRITE ONLY THE TOTAL ORDERING COST WITHOUT $ sign in the box below.
- A small local pharmacy, Tacky Pharm sells self-test kits for diabetic patients. These kits cost Tacky $15 each. Customers want to buy the kits at a rate of 240 per week. The pharmacy operates 52 weeks per year. Tacky Pharm estimates ordering cost at $50. Annual holding costs are 20 percent of the unit cost. Lead time is 2 weeks. Using the information given Calculate the economic order quantity. Calculate the total annual costs using the EOQ. Determine the reorder point.Demand for your product averages 20 units per day, with a standard deviation of 4. Your lead time is 5 days. What should your reorder point be, if you want to have a 95% chance of not running out of products during the lead time? With this reorder level, how much safety stock do you have?Items purchased from a vendor cost $250 each, and the forecast for next year’s demand is 2,000 units. The optimal order size is 100. The firm operates 52 weeks next year and lead time is 3 weeks. It costs $5 every time an order is placed for more units, and the storage cost is $2 per unit per year. What is the total ordering cost for a year? a.100 b.50 c.250 d.500 e.300
- Rapallo Sneakers, Inc. sells a pair of LG sneakers for $40. Due to the recent fitness craze, these shoes are in high demand: 68 pairs of shoes are sold per week. The ordering cost is $40 per order, and the annual holding cost is 20 percent of the selling price. If the store operates 50 weeks a year, what can you say about the size of the current order quantity of 250 pairs?Daily demand for product sample kits is normally distributed with a mean of 35 units and a standard deviation of 4. Supply is virtually certain with a lead time of 9 days. The cost of placing an order is $20, and annual carrying costs for one kit is 25 percent. The price of one kit is $12.50. Assume a year has 365 days.If a 99% service level is desired, what is average inventory on hand? If demand had no variation, what would the reorder point be?As inventory manager, you must decide on the order quantity for an item that has an annual demand of 2,000 units. Placing an order costs you $20 each time. Your annual holding cost, expressed as a percentage of average inventory value, is 20 percent. Your supplier has provided the following price schedule:Minimum Order Quantity Price per Unit1 $2.50200 $2.40300 $2.251,000 $2.00What ordering policy do you recommend?