Please help solve this within 45 min.. please Mega Sdn . Bhd is a wholesaler which buys and sells wide range of products. One of the products is called M3. Each month the company buys 100 units of M3 at cost of RM20 each. Each unit of M3 requires two square feet of space at a cost of RM4 per square foot per annum. Other holding costs are estimated to be 10% of the purchase price. For each order placed, it costs the company RM700. Required: Determine the economic order quantity by using formula.

Please help solve this within 45 min.. please Mega Sdn . Bhd is a wholesaler which buys and sells wide range of products. One of the products is called M3. Each month the company buys 100 units of M3 at cost of RM20 each. Each unit of M3 requires two square feet of space at a cost of RM4 per square foot per annum. Other holding costs are estimated to be 10% of the purchase price. For each order placed, it costs the company RM700. Required: Determine the economic order quantity by using formula.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 38P: Suppose you are borrowing 25,000 and making monthly payments with 1% interest. Show that the monthly...

See similar textbooks

Similar questions

Your company makes hand sanitizer in two lines: Moisturizing+, and StandardSoap. On the market, Moisturizing+ retails for $175/L and StandardSoap retails for $95/L. You make the hand sanitizer by combining lotion, soap, and secret ingredient SpecialX. These ingredients are purchased from a mysterious supplier, and you can purchase at most 4000L of lotion, 5000L of soap, and 750L of SpecialX in a month. Lotion costs $25/L, soap costs $10/L, and SpecialX costs $35/L. To make 1L of Moisturizing+, you need to combine 0.5L of lotion, 0.3L of soap, and 0.2L of SpecialX. To make 1L of StandardSoap, you need to combine 0.4L of lotion, 0.55L of soap, and 0.05L of SpecialX. Your company has committed to donating 500L of StandardSoap to a local charity. Since this is a donation, you will not receive any revenue. However, the costs and purchasing limits apply to both the hand sanitizer that is sold on the market and donated to charity. You want to maximize your monthly profit. Assume that…
AutoTime, a manufacturer of electronic digital timers, has a monthly fixed cost of $50,000 and a production cost of $7 for each timer manufactured. The timers sell for $15 each. (a) What is the cost function C(x)?C(x) = (b) What is the revenue function R(x)?R(x) = (c) What is the profit function P(x)?P(x) = (d) Compute the profit (loss) corresponding to production levels of 3000, 6000, and 11,000 timers, respectively. (Input a negative value to indicate a loss.) 3000 timers $ 6000 timers $ 11,000 timers $
Abby just finished her short-term course in Culinary Arts. With this pandemic we are facing now, her father is retrenched from his work. To help her family financially, she decided to make brownies and sell it online. The cost of producing 36 pieces of brownies are the following: ₱600 worth of ingredients ₱45 for 6 pieces of medium box ₱100 for 1 hour of labor cost ₱150 delivery cost The cost of promoting the product is none since she promotes it using any social media platform. Let’s say your desired return on sale is 40% and since it is a home-based small business, she will not have any fixed expenses related to baking. Using the Unit Product Cost, compute for the unit product cost and the marked-up price of her brownies.
A company manufactures 5,000 units of a product per month. The cost of placing an order is Rs. 100. The purchase price of the raw material is Rs. 10 per kg. The re-order period is 4 to 8 weeks. The consumption of raw materials varies from 100 kg to 450 kg per week, the average consumption being 275 kg The carrying cost of inventory is 20% per annum. You are required to calculate- (a) Re-order Quantity (b) Re order Level (c) Maximum Level (d) Minimum Level le) Average Stock Level
Fitness Express sells three different types of elliptical machines. They have manufactured 50 of each machine for a special sale. The store already ha orders for 46 of machine A and 16 of machine B. Use the following information to determine how many of machine C the store needs to sell to break even? Show your work on a separate sheet of paper. Manufacturing Cost $105.00 $140.00 $175.00 Elliptical Machine Machine A Machine B Machine C Total costs of all machines: $ Total revenue: $ Number of machine Cs to sell to break even: Retail Cost $250.00 $305.00 $420.00
Use dynamic programming to solve 0-1 knapsack problem in which the knapsack can hold up to 13kg with the following items: Item Weight (kg) Value 1 3 12 2 5 25 3 7 50
4) A 12-ounce box of Greenies costs $12.99. A 30-ounce box costs $26.99. (a) What is the cost in dollars per ounce in each box? Which size should you buy? (b) Suppose you have a coupon worth $5 toward the price of any box of Greenies. If you use the coupon, which size should you but? Is it always better to buy the large economy size? (c) Answer the previous question if your coupon gives you a 10% discount rather than $5 off. (d) What's a Greenie? Are these prices reasonable?
Please solve using Excel @Risk add-in the question is Textbook Problem from Practical Management Science 6th Edition Chapter 11.4 Problem 30P. In the solution please provided step-by-step excel formulas used. The full Question is attached in the image. Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the company’s mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. Thefollowing data are available:-> If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog.-> If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives.-> If a customer…
Flanger is an industrial distributor that sources from hundreds of suppliers. The two modes of transportation available for inbound shipping are LTL (less than truck- load) and TL (truckload). LTL shipping costs $1 per unit, whereas TL shipping costs $500 per truck. Each truck can carry up to 1,000 units. Flanger wants a rule assigning products to shipping mode (TL or LTL) based on annual demand. Each unit costs $50, and Flanger uses a holding cost of 22 percent. Flanger incurs a fixed cost of $150 for each order placed with a supplier. a. Determine a threshold for annual demand above which TL is preferred and below which LTL is preferred. b. How does the threshold change [relative to part (a)] if unit cost is $150 (instead of $50 ) with all other data unchanged? Which mode becomes preferable as unit cost grows? c. How does the threshold change [relative to part (a)] if the LTL cost comes down to $0.8 per unit (instead of $1 per unit)?
Please do not give solution in image format thanku Susana manages inventory at fashion apparel retailer Orange Republic. In January, Suasana is determining order quantity for swimsuit for coming summer season. Each swimsuit is purchased at $50 and sold at retail price of $105. All the swimsuits that remain unsold at the end of summer, are sold to discount retailer TJ-Minn for $22 at the beginning of fall. The demand for swimsuits during summer is Normally distributed with mean of 200 and standard deviation of 50. If Susana order 250 swimsuits, what is the expected profit from Swimsuits?
Suppose you are borrowing 25,000 and making monthly payments with 1% interest. Show that the monthly payments should equal 556.11. The key relationships are that for any month t (Ending month t balance) = (Ending month t 1 balance) ((Monthly payment) (Month t interest)) (Month t interest) = (Beginning month t balance) (Monthly interest rate) Of course, the ending month 60 balance must equal 0.
ABC Company has correctly computed its economic order quantity at 1,000 units; however, management feels it would rather order in quantities of 1,500 units. How should ABC’s total annual purchase order cost and total annual carrying cost for an order quantity of 1,500 units compare to the respective amounts for an order quantity of 1,000 units? A. Lower purchase order cost and lower carrying cost B. Lower purchase order cost and higher carrying cost C. Higher purchase order cost and higher carrying cost D. Higher purchase order cost and lower carrying costs