Krissy operates its factory 300 days per year. Its annual used of Material Y is 300,000 gallons. It carries a 2,500 gallon safety stock of material and its lead time is 3 business days.The EOQ for Material is 7,500 gallons, and the carrying cost per gallon per year is P.25. What is the total annual carrying cost for Material?
Q: Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering…
A: In the question, following information is given: Order units = 1,000 Chair cost = Php 500 Ordering…
Q: Annual demand for the notebook binders at Dunca n'sStationery Shop is I 0,000 units. Dana Duncan…
A: Given data is Demand(D) = 10,000 units Working days = 300 days Lead time(L) = 5 days
Q: Combate uses 100,000 units of Material X Annually I its production. Ordering cost consists of P1,000…
A: Solution- Inventory costs - Inventory costs include the costs of ordering and holding products, as…
Q: (**) Average weekly demand for free-range dog biscuits is 80 bags per week, with a standard…
A: Given Average weekly demand = 80 bags Standard deviation = 16 bags Lead time = 2 weeks Z=1.64 for…
Q: The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually.…
A: Hi, we are supposed to answer three subparts at a time. Since you have not mentioned which subpart…
Q: Haulsee Inc. builds 800,000 golf carts a year and purchases the electronic motors for these carts…
A: given, ordering cost = $540 build 800,000 carrying cost =14% of inventory value
Q: Wheel-Rite, a small producer of metal parts, supplies XYZ, a larger assembly company, with 10,000…
A: From the above given information, Let, annual production of wheel bearings, D= 10000…
Q: Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite…
A: EPQ model of inventory management determines the quantity a company or retailer should order to…
Q: Clap Off Manufacturing uses 2,200 switch assemblies per week and then reorders another 2,200. Assume…
A: Ans// a) Restocking cost : fixed cost *total weeks = 620 x 52 Restocking cost: $32240 b)…
Q: Peachy Keen, Inc., makes mohair sweaters, blouses with Peter Pan collars, pedal pushers, poodle…
A: Formula:
Q: Raymond Bro. has been buying a given item in lots of 900 units, which is three months’ supply. The…
A: Given- Material Requirement for 3 Months = 900 Units Annual Demand (D)=9003×12 = 3600 Units Ordering…
Q: What is the EOQ? What is the average inventory? How many orders should be placed each year?
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: All-Star Bat Manufacturing, Inc., supplies baseball bats to major and minor league baseball teams.…
A: Q=2DCO1-DPChQ=Economic order quantityD=DemandCo=Ordering costP=productionCh=holding costHere ,…
Q: Wood County Hospital consumes 1,000 boxes of bandagesper week. The price of bandages is $35 per box,…
A: Given Information: Weekly Demand = 1000 boxes Annual Demand (D) = 1000(52) = 52,000 Price of…
Q: A components manufacturer uses approximately 20,000 units annually of an item. They are used at a…
A: The concept used here is Economic order quantity model.
Q: MGR Corporation sells table napkins. These are sold by dozen per package for Php 20. They sell 2,000…
A:
Q: Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyers choice). The…
A: Number of bags = 100 Price/bag = $6 Number of bags = 101 Price/bag = $4.5 Annual demand = 630 Fixed…
Q: Aunt Molly's Old Fashioned Cookies bakes cookies for retail stores. The company's best-selling…
A: From the given data, to calculate direct material quantity variance, we need the following data.…
Q: a) What is the optimum production quantity? units (round your response to the nearest whole…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: A components manufacturer uses approximately 20,000 units annually of an item. They are used at a…
A: The concept used here is the Economic order quantity model.
Q: Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyers choice). The…
A: To identify which ordering quantity is best, the total holding, ordering and item costs for the…
Q: Myer stores carries a specialty line of flavored syrups. One of the most popular of these is a…
A: given, Given Weekly demand d = 55 bottles Price = $9
Q: Melur based uses and sells 15,000 units of a products per year with the price of RM60,000. Carrying…
A: Economic order quantity is described as a metric through which ideal or effective order size is…
Q: Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts.…
A: Given that , wheel bearing each year = 9,700 setup cost for wheel = $39 holding cost…
Q: Manufacturing company uses five 500-sheet boxes of copy paper a week. Experience suggests that usage…
A: The company has five 500-5heets boxes of copy paper. The usage of copy paper in the company follows…
Q: Princeton GI Roofing Ltd wants to reduce its total inventory cost using the appropriate EOQ model.…
A: Given, Annual demand, d=43420 sheets Ordering cost, o=Php 120 Holding cost, h=0.20 ×400= Php 80 Lead…
Q: Alimin Sdn. Bhd’s plant experiences a daily demand of 100 units of component B that is purchased…
A: Daily Demand = 100 units Annual Demand = D = 36,000 units Order Size = 400 units Ordering Cost = O =…
Q: Wang Distributors has an annual demand for an air-port metal detector of 1,400 units. The cost of a…
A: EOQ is Economic order quantity is defined as the ideal order quantity, the company need to purchase…
Q: A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests thatusage…
A: EOQ = [2 x annual demand x ordering cost / holding cost of per unit per year ]1/2 = [ 2…
Q: Thomas Kratzer is tbe purchasing manager for theheadquarters of a la rge insurance company chain…
A: Note: Since you have posted an inquiry with different sub-parts, we will settle the initial three…
Q: A comapny producing electronic equipment purchase batterys at $ 31.5 per unit. The annual…
A: A Small introduction about Purchasing Purchasing is one of the crucial cycles typical to all…
Q: Johnson's Juice sells bottles of "keep me awake during class" fruit juice to college students.…
A: Given,Annual demand of juice bottles= 88,000Holding cost = 16% = 0.16Setup cost = $ 45 per orderThe…
Q: A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests thatusage…
A: Given that, Demand = 5 units per week Annual demand if there are 52 weeks in the year = 260 units…
Q: Scary Clows Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 900…
A: The clown's manufacturer firm sells its special makeup to the circus. Economic order quantity (EOQ)…
Q: A components manufacturer uses approximately 20,000 units annually of an item. They are used at a…
A: The concept used here is the Economic order quantity model.
Q: Nestle Ltd. produces its premium plant food in 30 Kg bags. Demand is 100,000 Kgs. per week and the…
A: Demand is the total quantity of products and services for which the customers are willing to…
Q: The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually.…
A: Given data is Annual demand = 2,600,000 Ordering costs = P5,000 per order Carrying cost = P0.1 per…
Q: The economic order quantity of NEKO Inc. is 1,000 unit. They sold their sole product for a selling…
A: Cost of ordering 1000 units = 20000 Cost of ordering 1 unit, S = 20000/1000 = 20 EOQ =…
Q: What is the EOQ? How many orders should Warriors placed each year? How many units must be order…
A: EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…
Q: A florist carries an average inventory of $12,000 in cut flowers. The flowers requirespecial storage…
A: Average Inventory - $12,000 Capital Cost - 10% Storage Cost - 25% Risk cost - 50% Total carrying…
Q: The annual demand for notebook binders at a stationary shop is 10,000 units. The shop operates…
A: Annual demand (D) = 10,000 units Number of days per year (N) = 300 Lead time (L) = 5 days
Q: Top Hatz Inc. makes a variety of ski hats. The average demand for the ‘Nordic Dream’ hat is 125 per…
A: Given that the average demand for hats per week=125 Considering that there are 52 weeks in a year,…
Q: Peachy Keen, Inc., makes mohair sweaters, blouses with Peter Pan collars, pedal pushers, poodle…
A: Actual demand (D)=100 capacity=400 per week Set up cost= 35100 Holding cost (H)=20%
Q: Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls.…
A: Annual Demand (D)= 10×360= 3600 rolls per day Cost of ordering tape (S)= $1 Carrying costs(H) = 40%…
Q: Bold Vision, Inc., makes laser printer and photocopier toner cartridges. The demand rate is 625 EP…
A: Given data, Demand Rate = 625 per week Production Rate = 1735 per week Set Up cost = $100 Value…
Q: The mythical Own Distributors has an annual demand of 2,000 units for its handheld security wands.…
A: Economic order quantity helps companies to save costs. However, at times discounts are given by…
Q: Cape Fear Hospital consumed 400 boxes of bandages per week last year. The price of bandages was $80…
A: THE ANSWER IS AS BELOW:
Q: Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and…
A: Economic order quantity (EOQ) is the ideal quantity of inventory that the company should buy to…
Q: Authentic Thai rattan chairs (shown in the photo)are delivered to Gary Schwartz’s chain of retail…
A: Given data is, Reorder point = 200 chairs Carrying cost = $30 per unit per year Stockout cost = $70…
Krissy operates its factory 300 days per year. Its annual used of Material Y is 300,000 gallons. It carries a 2,500 gallon safety stock of material and its lead time is 3 business days.The EOQ for Material is 7,500 gallons, and the carrying cost per gallon per year is P.25. What is the total annual carrying cost for Material?
Step by step
Solved in 2 steps with 1 images
- The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.A local electronic repair shop uses 12,500 units of mobile batteries each year. It costs RO 25 to place and receive an order. The cost of material is RO 16 per unit and carrying cost is 10% of the cost per unit. Calculate the Economic Order Quantity for the shop, number of orders and total inventory costs.1. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the EOQ.
- Combate uses 100,000 units of Material X Annually I its production. Ordering cost consists of P1,000 for placing a long distance call o make the order and P4,000 for delivering the order to the company warehouse. Each material cost P10,000 and the carrying costs are estimated at 15.625% of the inventory cost. Whats is the total ordering cost?A florist carries an average inventory of $12,000 in cut flowers. The flowers requirespecial storage and are highly perishable. The florist estimates capital costs at 10%,storage costs at 25%, and risk costs at 50%. What is the annual carrying cost?Combate uses 100,000 units of Material X Annually I its production. Ordering cost consists of P1,000 for placing a long distance call o make the order and P4,000 for delivering the order to the company warehouse. Each material cost P10,000 and the carrying costs are estimated at 15.625% of the inventory cost. What is the total carrying cost?
- Johnson's Juice sells bottles of "keep me awake during class" fruit juice to college students. Annual demand is 88,000 bottles. The company uses an annual holding cost percentage of 16% in its setup cost is $45 per order. The current price per bottle from the supplier is $.75, and Johnson's Juice resells it to customers for $2.00 each. However, the supplier has notified Johnson's Juice that starting nect week the purchase price will rise to $1.15 due to tariffs imposed by the government. Johnson's inventory of bottles is about to be depleted. How many bottles should Johnson's jiuce purchase in the next order. (assume the bottles are full of chemicals so the juice will never expire.)Joe Henry's machine shop uses 2,530 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,530 Holding cost per bracket per year $1.65 Order cost per order $18.25 Lead time 2 days Working days per year 250 Part 2 a) What is the EOQ? enter your response here units (round your response to two decimal places). Part 3 b) What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places). What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places). Part 4 c) Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places). What would be the annual order cost? $enter your response here (round…Melur based uses and sells 15,000 units of a products per year with the price of RM60,000. Carrying costs are RM12 per unit per annum and the cost of placing order is RM30. The purchase price per unit is RM4. The lead time is 5 days and therefore Melur Berhad keeps 100 units in inventory as safety stock. Based on the information above compute: i) Economic order quantity of Melur Berhad ii) Number of orders per year
- Authentic Thai rattan chairs (shown in the photo)are delivered to Gary Schwartz’s chain of retail stores, called TheKathmandu Shop, once a year. The reorder point, without safety stock,is 200 chairs. Carrying cost is $30 per unit per year, and the cost of a stockout is $70 per chair per year. Given the following demand prob-abilities during the lead time, how much safety stock should be carried? DEMAND DURING LEAD TIME PROBABILITY0 0.2100 0.2200 0.2300 0.2400 0.2Maroons Medical Supplies, Inc. must order masks from its supplier in lots of 1 dozen boxes. Given the information provided below, complete the following table: Annual demand 26,000 dozen Cost per order placed P30 Carrying cost 20% Price per dozen P7.80 Order Size (Dozen) 250 500 1,000 2,000 13,000 26,000 Number of orders Average inventory Carrying cost Order cost Total cost 1. What is the EOQ? Please include/fill the table and solve for EOQ. Thank you so much!Princeton GI Roofing Ltd wants to reduce its total inventory cost using the appropriate EOQ model. Currently, it orders 2170 thick gauge roofing sheets per batch. Annual demand is projected to be 43420 sheets. The ordering cost is Php 120. The average carrying cost is equivalent to 20% of the unit acquisition price of Php 400. Lead time is three days. Assume a 365 day year. d. Based on the appropriate EOQ model, what should be the reorder point? Express your answer up to the nearest integer or whole number. Exclude commas and any unit of measuree.How much would the total annual inventory cost be reduced based on the results of the EOQ Model? Express your answer up to the nearest PESOf.Express the computed cost reduction in the total annual inventory cost in terms of percentage up to the nearest integer or whole number. Exclude commas and the % sign.