Academic)s Management Fall20Al Khaleej Inc. needs 440 kgs of a material per month. It costs RO 100 to make and receive anorder, and it takes 12 workdays to receive it. The annual holding cost is 15 % of purchase price.The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. Whatis the expected time (in weeks) between order? Round-up to the nearest integerSelect one:O a. 185O b. None is correctO c. 105O d. 111O e, 207

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Description: Academic)s Management Fall20Al Khaleej Inc. needs 440 kgs of a material per month. It costs RO 100 to make and receive anorder, and it takes 12 workdays to receive it. The annual holding cost is 15 % of purchase price.The price RO 2 per kg. The comp

OPTION B IS CORRECT - None is correct

Business

Management

Management Fall20 Chaleej Inc. needs 440 kgs of a material per month. It costs RO 100 to make and er, and it takes 12 workdays to receive it. The annual holding cost is 15 % of pure e price RO 2 per kg. The company is operating 6 workdays per week in a 52-week he expected time (in weeks) between order? Round-up to the nearest integer lect one: ) а. 185 O b. None is correct Oc. 105 O d. 111 O e. 207

Management Fall20 Chaleej Inc. needs 440 kgs of a material per month. It costs RO 100 to make and er, and it takes 12 workdays to receive it. The annual holding cost is 15 % of pure e price RO 2 per kg. The company is operating 6 workdays per week in a 52-week he expected time (in weeks) between order? Round-up to the nearest integer lect one: ) а. 185 O b. None is correct Oc. 105 O d. 111 O e. 207

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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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.
Tacky Souvenirs sells lovely handmade tablecloths at its islandstore. These tablecloths cost Tacky $15 each. Customers wantto buy the tablecloths at a rate of 240 per week. The companyoperates 52 weeks per year. Tacky, the owner, estimates hisordering cost at $50. Annual holding costs are 20 percent of theunit cost. Lead time is 2 weeks. Using the information given,(a) Calculate the economic order quantity.(b) Calculate the total annual costs using the EOQ.(c) Determine the reorder point.
If D = 8,000 per month, S = $45 per order, andH = $2 per unit per month,a) What is the economic order quantity?b) How does your answer change if the holding cost doubles?c) What if the holding cost drops in half?
G-Tech’s monthly demand is 1000 units. You are in charge of the inventory department. You know that the holding cost is $100 per unit and ordering cost is $4,000 per order. What is the EOQ? 2. What is the number of orders per year? 3. What is the annual holding cost? (not Total cost, just the holding cost portion! 4. If we decide to order a quantity of 1000 units instead of the EOQ, what happens to the annual holding cost? (Just tell me in words – could be 3 short words!)
William Bevi lle's computer training school, inRichmond, stocks workbooks with the following characteristics:Demand D = 19,500 units/ yearOrdering costS = $25/ orderHolding cost H = $4/ unitjyeara) Calculate the EOQ for the workbooks.b) What are the annual holding costs for the workbooks?c) What are the annual ordering costs?
Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 200 pounds per month of the chemical, estimates the holding cost to be £3.33 (because of spoilage), and estimates order costs to be £10 per order. What quantity should be ordered, and which supplier should be used? Discuss factor(s) should be considered besides total cost.
William Beville’s computer training school, inRichmond, stocks workbooks with the following characteristics: Demand D = 19,500 units>yearOrdering cost S = +25>orderHolding cost H = +4>unit>yeara) Calculate the EOQ for the workbooks.b) What are the annual holding costs for the workbooks?c) What are the annual ordering costs?
35) Oman Apparels needs to place order for materials for their operations. The material costs OMR 1,000, and the annual holding cost is 25%, annual demand is 10,000 units, and the order cost is OMR 150 per order. Find out the approximate economic order quantity of the company? a. 250 units b. 110 units c. 12,000 units d. 70 units
1. If D = 7,900 per month, S = $44 per order, and H = $2.50 per unit per month, Part 2 a) What is the economic order quantity? The EOQ is ______ units (round your response to the nearest whole number). b) how does your answer change if the holding cost doubles? c) What if the holding cost drops in half?
A local supermarket sells a popular brand of shampoo at a fairly steady rate of 380 bottles per month. The cost of each bottle to the supermarket is 45 cents, and the cost ofplacing an order has been estimated at $8.50. Assume that holding costs are based ona 25 percent annual interest rate. Stock-outs of the shampoo are not allowed.b. If the procurement lead time is two months, find the reorder point based on the onhand inventory
William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 20,000 units/year Ordering cost S $23/order Holding cost H $3/unit/year Part 2 a) The EOQ for the workbooks is ________ (round your response to the nearest whole number). Part 3 b) What are the annual holding costs for the workbooks? $________ (round your response to the nearest whole number). Part 4 c) What are the annual ordering costs? $_________ (round your response to the nearest whole number).
Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1000 kg of palm oil per day, on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah’s annual holding cost is 25 percent. Assume she operates and sells five days per week, 52 weeks per year. a. If Sarah wants to minimize her annual ordering and inventory holding costs, how much palm oil should she purchase with each order (in kg)? b. If Sarah orders 4000 kg with each order, what would be the annual sum of the ordering and holding costs? c. If Sarah orders 8000 kg with each order, what would be the sum of the ordering and holding costs per kg sold? d. Sarah’s supplier is willing to sell her palm oil at a 5 percent discount if she purchases 15,000 kg at a time. If she were to purchase 15,000 kg per order, what would be her annual sum of the ordering and holding costs?