Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.3 per bag. What will the optimal maximum inventory level on-hand end of each production run? Round-up to the nearest integer a. 9122 Ob. 6737 Oc None is correct d. 6606 e. 7532

Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.3 per bag. What will the optimal maximum inventory level on-hand end of each production run? Round-up to the nearest integer a. 9122 Ob. 6737 Oc None is correct d. 6606 e. 7532

Name: Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is
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Description: Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plantoperates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 andthe annual holding cost rate is OMR 0.3 per b

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.
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11. Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag. What should be the optimal production quantity? Round-up to the nearest integer a. 11010 b. 11228 c. None is correct d. 12228 e. 10902
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Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 50 weeks each year Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 1 per bag What is the optimal (time) length of uptime in years? Oa 0.031 b. 0.039 0.023 Od 0.033 0. None is correct
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