for the cheese. How much should the sandwich bar order and roughly how often will they be placing an order on the distributor for this product?(2 (b) Calculate the reorder level the sandwich bar should use to ensure an in-stock frequency of 99%.
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- Company B is a retailer of mobile phones in Australia that works 250 days in a year. Themanager would like you to determine a minimum-cost inventory plan for an upcoming mobilephone to be launched in the market. They have collected the following information:• Annual demand: 750 phones• Phone cost: $1,005 each• Phone RRP: $1,149 each• Net weight: 167 g each• Tare weight: 257 g each• Annual inventory holding cost: 27.5%• Cost per order to replenish inventory: $81.71• Annual in-transit holding cost: 10%• Freight rate (per kg): $8.10• Freight-related charges (per shipment): $276.50 (i.e. handling fee, dangerous goodfee, and lithium battery fee)• Time to process order for freight: 2 day• Freight transit time: 5 daysThe manager wants you to determine the following information:a. Economic order quantityb. The total purchasing costc. The total ordering costd. The total inventory holding coste. The total transportation cost (by weight)f. The total freight-related cost (by shipment)g. The total…Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager is determining a minimum-cost inventory plan for an upcoming phone to be launched in the market. She has collected the following information: Annual demand: 1000 phones• Phone cost: $1,214 each• Phone RRP: $1,349 each• Net weight: 163 g each• Tare weight: 277 g each• Annual inventory holding cost: 15%• Cost per order to replenish inventory: $75• Annual in-transit holding cost: 10%• Freight rate: $8.10 per kg• Time to process order for freight: 1 days• Freight transit time: 3 days Solve this problem using a non-linear programming (NLP) model to determine the followings:a. Economic order quantity for the phone in units and in kgb. The total cost for purchasing the phonesc. The total cost for orderingd. The total cost for holding the inventorye. The total cost for transportationf. The total cost for holding the phones during transitg. The total cost for this inventory planh. The number of…Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager is determining a minimum-cost inventory plan for an upcoming phone to be launched in the market. She has collected the following information: • Annual demand: 1000 phones • Phone cost: $1,214 each • Phone RRP: $1,349 each • Net weight: 163 g each • Tare weight: 277 g each • Annual inventory holding cost: 15% • Cost per order to replenish inventory: $75 • Annual in-transit holding cost: 10% • Freight rate: $8.10 per kg • Time to process order for freight: 1 days • Freight transit time: 3 days Solve this problem using a non-linear programming (NLP) model to determine the followings:d. The total cost for holding the inventory e. The total cost for transportation f. The total cost for holding the phones during transit g. The total cost for this inventory plan h. The number of orders i. Ordering point j. The profit from this inventory plan
- Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager is determining a minimum-cost inventory plan for an upcoming phone to be launched in the market. She has collected the following information: • Annual demand: 1000 phones • Phone cost: $1,214 each • Phone RRP: $1,349 each • Net weight: 163 g each • Tare weight: 277 g each • Annual inventory holding cost: 15% • Cost per order to replenish inventory: $75 • Annual in-transit holding cost: 10% • Freight rate: $8.10 per kg • Time to process order for freight: 1 days • Freight transit time: 3 days Solve this problem using a non-linear programming (NLP) model to determine the followings: a. Economic order quantity for the phone in units and in kg b. The total cost for purchasing the phones c. The total cost for ordering d. The total cost for holding the inventory e. The total cost for transportation f. The total cost for holding the phones during transit g. The total cost for this inventory plan…Native Customs sells two popular styles of hand-sewn footwear: a sandal and a moccasin. The cost to make a pair of sandals is $18, and the cost to make a pair of moccasins is $24. The demand for these two items is sensitive to the price, and historical data indicate that the monthly demands are given by S = 360 − 9P1 and M = 400 − 20P2, where S = demand for sandals (in pairs), M = demand for moccasins (in pairs), P1 = price for a pair of sandals, and P2 = price for a pair of moccasins. To remain competitive, Native Customs must limit the price (per pair) to no more than $60 and $75 for its sandals and moccasins, respectively. Formulate this nonlinear programming problem to find the optimal production quantities and prices for sandals and moccasins that maximize total monthly profit.Dorothy’s pastries are freshly baked and sold at several spe-cialty shops throughout Perth. When they are a day old, theymust be sold at reduced prices. Daily demand is distributedas follows:Demand Probability50 0.25150 0.50200 0.25Each pastry sells for $1.00 and costs $0.60 to make. Each onenot sold at the end of the day can be sold the next day for$0.30 as day-old merchandise. How many pastries should bebaked each day?
- Dorothy’s pastries are freshly baked and sold at several spe-cialty shops throughout Perth. When they are a day old, theymust be sold at reduced prices. Daily demand is distributedas follows:Each pastry sells for $1.00 and costs $0.60 to make. Each onenot sold at the end of the day can be sold the next day for$0.30 as day-old merchandise. How many pastries should bebaked each day?Community Hospital orders latex sanitary gloves from a hospital supply firm. The hospital expects to use 40,000 pairs of gloves per year. The cost to order and to have the gloves delivered is $180. The annual carrying cost is $0.18 per pair of gloves. The hospital supply firm offers the following quantity discount pricing schedule: Quantity Price 0–9,999 $0.34 10,000–19,999 0.32 20,000–29,999 0.30 30,000–39,999 0.28 40,000–49,999 0.26 50,000+ 0.24 Determine the optimal order size for the hospital.Catlea Merchandising is engaged in selling school shoesfor both boys and girls in their teenage years. Catlea needs 32,000 pairs of shoes in a year in order to satisfy the market demand. It costs ₱ 48 to place an order while ₱ 8 is needed to hold each quantity of shoe in Catlea's inventory. Upon checking on Catlea's supplier, it takes 8 days in between placing an order and eventually receiving it. a. Determine the Economic Order Quantityb. Determine the number of order per monthc. Determine the reorder point
- Problem 20-10 (Algo) You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.50 a copy. You sell a copy of San Pedro Times for $1.25. Daily demand is distributed normally with mean = 335 and standard deviation = 67. At the end of each morning, any leftover copies are worthless and they go to a recycle bin. a. How many copies of San Pedro Times should you buy each morning? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Round your z-value to 2 decimal places and final answer to to 2 decimal places.) b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.)Boreki Enterprises has the following 10 items ininventory. Theodore Boreki asks you, a recent OM graduate, todivide these items into ABC classifications.ITEM ANNUAL DEMAND COST/UNITA2 3,000 $ 50B8 4,000 12C7 1,500 45D1 6,000 10E9 1,000 20F3 500 500G2 300 1,500H2 600 20I5 1,750 10J8 2,500 5a) Develop an ABC classification system for the 10 items.b) How can Boreki use this information?c) Boreki reviews the classification and then places item A2 intothe A category. Why might he do so?The Farmer’s Wife is a country store specializing in knickknacks suitable for a farm-house décor. One item experiencing a considerable buying frenzy is a miniature Holstein cow. Average weekly demand is 30 cows, with a standard deviation of 5 cows. The cost to place a replenishment order is $15 and the holding cost is $0.75/cow/year. The supplier, however, is inChina. The lead time for new orders is 8 weeks, with a standard deviation of 2 weeks. The Farmer’s Wife, which is open only 50 weeks a year, wants to develop a continuous review inventory system for this item with a cycle-service level of 90 percent.a. Specify the continuous review system for the cows. Explain how it would work in practice.b. What is the total annual cost for the system you developed?