How many orders should be made? How many brochures should be printed at a time?
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The TCC Art Gallery prints a brochure for visitors to the senior art showcase it sponsors at the college. There are about 16000 visitors per year to this event (held year round). Holding costs for the brochures are 25% and it costs $40 to place an order with the printer. The printer has offered the following discount
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|
Category |
Order Size |
Unit Cost |
|
|
1 |
0 - 1499 |
$2.60 |
|
|
2 |
1500 - 2999 |
$2.30 |
|
|
3 |
3000 and over |
$1.90 |
Answer the following questions in a text box in the worksheet excel
- How many orders should be made?
- How many brochures should be printed at a time?
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- BIKO is a bike retailer located in the outskirts of Paris. BIKO purchases bikes from PMX in orders of 250 bikes which is the current economic order quantity. PMX is now offering the following bulk discounts to its customers: 2% discount on orders above 200 units 4% discount on orders above 500 units 6% discount on orders above 600 units BIKO is wondering if the EOQ model is still the most economical and whether increasing the order size would actually be more beneficial. Following information is relevant to forming the decision: Annual demand is 5000 units Ordering cost is $100 per order Annual holding cost is comprised of the following: 5% insurance premium for the average inventory held during the year calculated using the net purchase price Warehousing cost of $6 per unit Purchase price is $200 per unit before discount (Hint: We need to compare the total inventory cost of the order quantities at the various discount levels with that of the economic order quantity)ESTRELLA is a bike retailer located in the outskirts of Bacolod City. ESTRELLA purchases bikes from STORAGEHUB in orders of 250 bikes which is the current economic order quantity. STORAGEHUB is now offering the following bulk discounts to its customers: Price 0% discount on orders less than 499 P3,500 10% discount on orders above 500 units - 999 3,150 15% discount on orders above 1,000 units 2,975 ESTRELLA is wondering if the EOQ model is still the most economical and whether increasing the order size would actually be more beneficial. Following information is relevant to forming the decision: Annual demand is 5000 units Ordering cost is $100 per order Annual holding cost is 25% QTY SETUP HOLDING PROODUCT COST TOTAL COST Q1 25423.73 25812.5 what is the product cost what is the total cost Q2 3000 198437.5 what is…ESTRELLA is a bike retailer located in the outskirts of Bacolod City. ESTRELLA purchases bikes from STORAGEHUB in orders of 250 bikes which is the current economic order quantity. STORAGEHUB is now offering the following bulk discounts to its customers: Price 0% discount on orders less than 499 P3,500 10% discount on orders above 500 units - 999 3,150 15% discount on orders above 1,000 units 2,975 ESTRELLA is wondering if the EOQ model is still the most economical and whether increasing the order size would actually be more beneficial. Following information is relevant to forming the decision: Annual demand is 5000 units Ordering cost is $100 per order Annual holding cost is 25% How much is the EOQ for each quantity discount? How much should be the EOQ?
- The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 350 baseballs per week. The team orders baseballs from Coopers-Town, Inc., a ball manufacturer noted for six-sigma–level consistency and high product quality. The cost to order baseballs is $100 per order and the annual holding cost per ball is 38 percent of the purchase price. Coopers-Town’s price structure is: Order Quantity Price per Unit 1–999 ........ $7.50 1,000–4999 ...... $7.25 5,000 or more ..... $6.50 a. How many baseballs should the team buy per order? b. What is the total annual cost associated with the best order quantity? c. Coopers-Town, Inc., discovers that, owing to special manufacturing processes required for the Buck’s base-balls, it has underestimated the setup time required on a capacity-constrained piece of machinery. Coopers-Town adds another category to the price structure to provide an incentive for larger orders and thereby hopes to reduce…The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 350 baseballs per week. The team orders baseballs from Coopers-Town, Inc., a ball manufacturer noted for six-sigma-level consistency and high product quality. The cost to order baseballs is $100 per order and the annual holding cost per ball is 38 percent of the purchase price. Coopers-Town’s price structure is: Order Quantity Price per Unit 1–999 $7.50 1,000–4999 $7.25 5,000 or more $6.50 a. How many baseballs should the team buy per order? b. What is the total annual cost associated with the best order quantity? c. Coopers-Town, Inc., discovers that, owing to special manufacturing processes required for the Buck’s baseballs, it has underestimated the setup time required on a capacity-constrained piece of machinery. Coopers-Town adds another category to the price structure to provide an incentive for larger orders and thereby hopes to…3) The TCC Art Gallery prints a brochure for visitors to the senior art showcase it sponsors at thecollege. There are about 16000 visitors per year to this event (held year round). Holding costs for thebrochures are 25% and it costs $40 to place an order with the printer. The printer has offered thefollowing discount schedule:Category Order Size Unit Cost1 0 - 1499 $2.602 1500 - 2999 $2.303 3000 and over $1.90Answer the following questions in a text box in the worksheet.A) How many orders should be made?B) How many brochures should be printed at a time?C) Please copy these two numbers and include them on the executive summary (the first worksheet).
- ITEMS 18 to 20 ARE BASED ON THE FOLLOWING INFORMATION: 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. At present, the company's total annual inventory costs is P 7,500. c. P24,375. P16,875. d. P22,500.Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is $30. The cost of holding one unit of inventory for one year is $15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Compute the economic order quantity. Economic order quantity = 1600 Compute the ordering, carrying, and total costs for the EOQ. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?Dream Resorts buys custom - made boxes in bulkand uses them to pack its wine, which it bottles and sells in its on - location Restaurant/ Wine shop. The annual requirement of these boxes is 1200 and each box costs $30. The ordering and carrying costs are $10 per order and 20%, respectively. The supplier from whom Dream Resorts purchases these boxes sells them only in lots of 20, that is, you only purchase quantities in multiples of 20 boxes. Required: a) How many boxes should the confectioner order so as to minimise inventory total stocking costs? b) If the supplier offers 2% discount on the cost of each box when the purchases are in quantities of 300 at a time, should the confectionewr accept this offer? c) Suppose the supplier has decided that instead of the 2% discount offer, a price reduction of $0.25 will be used for the order quantities as shown in Table Q1: Table Q1 Order quantity Cost per box Less than 100 $30.00 100 to 199 $29.75 200 or more $29.50 What order…
- A medical facility’s demand for N95 respirators and disposable gloves is deterministic and stable at a rate of 20 respirators per day and 100 gloves per day. The distributor charges $20 per pack of 20 respirators and $10 for a pack of 25 gloves. The distributor offered the healthcare facility the following plan: whenever the medical facility places a single order for both N95 respirators and gloves, the distributor will package one pack of respirators together with two packs of gloves to minimize shipping volume. The remainder of the order of gloves will be sent in the second shipment (without any extra shipping cost), which will be timed so that the healthcare facility receives the second shipment just before it runs out of gloves inventory. The shortages are not allowed. The fixed cost of placing an order is $10 and the holding cost rate is a 20% annual interest rate (assume 365 days per year). Calculate the average annual cost for this inventory system. If the lead time from the…Petromax Enterprises uses a continuous review policy to manage the inventory for one of its SKUs. The following information is available on the item. The firm operates 50 weeks in a year. Demand = 90,000 units/year Ordering Cost = $60/Order Holding Cost = $3/Unit/Order Lead Time = 10 weeks Standard Deviation of Weekly Demand = 200 units Suppose due to some recent changes to the target service level, they have determined the reorder point to be 20,000. If the inventory position of this SKU is currently 19,600, how many units should they order? (Round your answer to the nearest whole number, if it has decimals. Input 0 if they should not order now.)Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The company desires a safety stock of 500 units. A 5-day lead time is needed for delivery. Annual inventory carrying costs equal 25% of the average inventory level. The company pays P4 per unit to buy the product, which it sells for P8. The company pays P150 to place a detailed order, and the monthly demand for the product is 4,000 units. Compute for the annual inventory carrying costs
