Most inventory models attempt to minimize
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- Most inventory models attempt to minimize
a. The likelihood of stockout
b. None of these
c. The numbers of orders placed
d. Total inventory-based cost
e The number of items ordered
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- Counting items to ensure an order is correct, is an exampleof:A. stockout costB. carrying costC. ordering costD. Setup cosQ2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually. Q2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually.Which reason for holding inventory enables a firm to reduce the impact of large fixedcosts that the firm incurs whenever it places an order to a supplier?a. Seasonalityb. Uncertain demandc. Buffersd. Batching
- The EOQ model with quantity discounts attempts todetermine:a) the lowest amount of inventory necessary to satisfy acertain service level.b) the lowest purchase price.c) whether to use a fixed-quantity or fixed-period orderpolicy.d) how many units should be ordered.e) the shortest lead timePlease do not give solution in image format thanku 1. Current total inventory level (I E) of a company is 10,000 units, which are held at 4 different facilities (n E). Next year, the company plans to open 12 new facilities. Provide an estimate on the total future inventory level (I F) for the company. a. 60,000 units b. 10,000 units c. 40,000 units d. 20,000 units e. 17,321 unitsGiven this information:Lead-time demand = 615 poundsStandard deviation of lead time demand = 48 pounds (Assume normality.)Acceptable stockout risk during lead time = 4 percentUse Table. a. What amount of safety stock is appropriate? (Round your answer to the nearest whole number.) Safety stock units b. How much of this item should be reordered? (Round your answer to the nearest whole number.) ROP units c. What risk of stockout would result from a decision not to have any safety stock? (Omit the "%" sign in your response.) Stockout risk %
- The following data are for an inventory item in which the EOQ model applies: Given: D = 10,000 units (annual demand) R = P10 per unit P = P500 per order C = 25% 0f average inventory Find: a. the number of orders per year b. the economic order quantity (EOQ) c. the amount in pesos per order d. the number of days interval between orders e. the total inventory costsHalloween is the big holiday for a candy manufacturer—more than half of its salesoccur in the month leading up to Halloween. As a result, the manufacturer produces a largestockpile of inventory before the holiday. Which of the following best explains the reason forthis inventory?a. Seasonalityb. Batchingc. Buffersd. Uncertain demande. PricingA manufacturing company produces two products X and Y. Each product X requires one A and two Bs. Each B requires one C and one D. Each product Y requires 1 C and 4Ds. Table Q5A shows data from the inventory records of components. Table Q5A Data category A B C D Lot - sizing rule Fixed order quantity = 250 Lot for lot Lot for lot Fixed order quantity = 1000 Lead time 3 weeks 2 weeks 1 week 2 weeks Beginning inventory 70 0 200 800 The MPS for products X and Y is given in Table Q5B. The on-hand inventories are as follows: X = 100, Y = 30. The only scheduled receipts are 250 units of X in period 2.The lead times are as follows: X = 2 weeks, Y = 3 weeks. The chase strategy is used for both products. Table Q5B Demand in period Product SS 1 2 3 4 5 6 7 8 X 50 300 200 250 Y 30 400 Required: a) Draw a product structure tree for each product. b) Develop…
- 1. In a manufacturing company:Beginning Inventory + Purchases = Cost of Goods Available for Sale a) True b) False 2. Manufacturers have three unique inventory categories: Raw Materials, Work in Process, and Finished Goods. But retailers have only an Inventory account. a) True b) False 3. Period costs are any costs that are not product costs like Commission Expense, Office rent Expense, Advertisement Expense, Office Salary Expense. a) True b) FalseWhich of the following is true for inventory control: Select one a . Economic order quantity has minimum cost per order b . All the options are correct c . Inventory carrying cost increases with quantity per order d. Ordering cost decreases with lot sizeThe EOQ model with quantity discounts attempts todetermine:a) the lowest amount of inventory necessary to satisfy a certain service level.b) the lowest purchase price.c) whether to usc a fiXed-quantity or ftXed-period order policy.d) how many units should be ordered.e) the shortest lead time.