Ram Roy's firm has developed the following supply, demand, cost, and inventory data.Supply AvailableDemandPeriod Regular Time Overtime SubcontractForecast401515503515156030201550Initial inventoryRegular-time cost per unitOvertime cost per unitSubcontract cost per unitCarrying cost per unit per month30 units$100$150$200$4Assume that the initial inventory has no holding cost in the first period and backorders are notpermitted.Allocating production capacity to meet demand at a minimum cost using the transportation method,the total cost is $(enter your response as a whole number).

The greatest output that can be reached in the manufacturing of manufactured items is referred to as…

Answered: Ram Roy's firm has developed the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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Suppose this information is available for PepsiCo, Inc. for 2015, 2016, and 2017. (in millions) 2015 2016 2017 Beginning inventory $ 2,100 $ 2,400 $ 2,300 Ending inventory 2,400 2,300 2,700 Cost of goods sold 18,227 20,071 20,478 Sales revenue 39,145 42,957 44,066 Calculate the days in inventory for PepsiCo, Inc. for 2015, 2016, and 2017. (Round days in inventory to 1 decimal place, e.g. 5.1.) 2015 2016 2017 Days in inventory days
I need a detailed assistance to solve the following problem in: Operations Analysis. 1) A trucking company maintains an inventory of trucks that varies monthly. The ending inventory of trucks during the first 8 months of the year (January to August) were 26, 38, 31, 22, 13, 9, 16, 5, respectively. The monthly inventory holding cost is proportional to the monthly ending inventory. Trucks incur the following costs Each truck costs the company $8,000. Interest rate on the cost of capital is 20% per annum (annually). Each truck incurs a storage cost of 3% per annum of the truck cost. Each truck incurs a liability insurance cost of 2% per annum of the truck cost. The carrying cost is the total of all costs (capital, storage and insurance.) What is the monthly carrying cost per truck? What is the total carrying cost incurred by the company over the 8 months (January to August)? What is the estimated average annual carrying cost?
Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Period Regular Time Overtime Subcontract Demand Forecast 1 30 15 5 40 2 30 15 5 45 3 30 20 5 50 Initial inventory 20 units Regular-time cost per unit $100 Overtime cost per unit $160 Subcontract cost per unit $200 Carrying cost per unit per month $4 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Part 2 Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $enter your response here (enter your response as a whole number).
Metaverse LLP is a laptop manufacturing company located at Bengaluru, India. One of the main components of the laptop is the Hard Disk Drive (HDD). The inventory of this item is controlled by the EOQ model. Presently the company imports 40 GB HDD from Micron Components and Devices at a unit price of $60 and a 15 day delivery time. Metaverse needs to determine the amount to order each time an order is placed. They also need to determine when to place the order. The forecasted demand for the coming year for the 40GB HDD is 3,000 units. The company incurs a high ordering cost of $225 per order. The average annual inventory holding cost is estimated to be 25% of the item cost and a safety stock of 25 HDDs is maintained. The company operates for 300 days a year. However, Micron wants to drastically increase prices of HDDs which is not acceptable to Metaverse. The purchase officer of Metaverse has identified another supplier Minnesota Data Products. This supplier is willing to supply at…
BicycleBro is a retailer that sells bicycles. The company had been operating for 30 days (1 month). By the end of 1 month it wants to measure its performance in terms of Inventory turnover and Days of inventory. Below is the information that the company has collected from its warehouse and accounting department Stock Count Sheet Item code Stock on hand Stock count week (week number when employees counted the stock on hand) 100 30 week1 200 10 week1 100 10 week3 200 20 week3 Inventory valuation Item code Value per unit (in $) 100 1000 200 2000 Bicycles sold by end of month Item code Units sold 100 5 200 10 Given the information above find What is the total inventory turnover rate for given period? What is the total Inventory Days of Sales for given period?
Exercise 14: • __________is an inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs. This method requires producers to forecast demand accurately. • What is its main disadvantage?
d. The weekly average inventory listed above cannot change much since the grocery store is limited in storage capacity, and can therefore assumed to remain constant over time. The store has calculated that having less than 3 weeks of supply will create problems keeping stock available for clients. What annual cost of goods sold will bring about this condition (3 weeks of supply)?e. The grocery store is increasingly popular and management has calculated that, on average, the cost of goods sold increase by $5 million per year, reflecting better sales. How many years will it take for the grocery store to require expansion?
A Mercedes dealer must pay $20,000 for each carpurchased. The annual holding cost is estimated to be 25%of the dollar value of inventory. The dealer sells an averageof 500 cars per year. He believes that demand is backloggedbut estimates that if he is short one car for one year he willlose $20,000 worth of future profits. Each time the dealerplaces an order for cars, ordering cost amounts to $10,000.Determine the Mercedes dealer’s optimal ordering policy.What is the maximum shortage that will occur?
I need a detailed assistance to solve this problem in: Operations Analysis. 3) A chemical manufacturer produces a compound at the rate of 10,000 pounds a day over 250 days each year. Annual demand for that compound is 600,000 pounds per year, and each pound sells for $3.90. There is a fixed setup cost of $1,500 for each production run, and a variable cost of $3.50 for each pound produced. The following costs are incurred: Interest rate on the cost of capital is 22% per annum (annually). Storage and handling costs amount to 12% of the compounds cost per annum. a)- What is the optimal production lot for the compound (write down the model name, its parameters and formula)? b)- Compute the uptime, downtime and cycle time in days, and find the cycle fraction of uptime and the cycle fraction of downtime (include the formula). c)- What are average annual holding and setup costs for the compound (include the formula)? d) - What is the annual profit for this compound?
Blade Breakers Ltd. manufactures blades. The following are the details of their operation during 2020: Average monthly market demand 2,000 blades Ordering costs $ 200 per order Inventory carrying costs 20% per annum Cost of lamps $ 1000 per blade Normal usage 100 blades per week Minimum usage 50 blades per week Maximum usage 200 blades per week Lead time to supply 4 - 6 weeks Compute: Economic order quantity. Maximum level of stock. Minimum level of stock. Re-order level of stock. What tradeoffs in costs are involved in computing the Economic Order Quantity?
AAA auto supply store sells snow tires which are ordered every Friday to meet next week's demand. The sales price for the most popular size is $50 per tire and its cost for AAA is $35. If too many tires are ordered AAA incurs an inventory carrying cost of $2 per tire. If AAA is out of stock, it forgoes the profits from missed sales. AAA has the option to order 100, 150, or 200 tires to meet next week's demand which can be either 100, 150, or 200 tires.Based on its historical demand distribution, assume that AAA Inc. has determined the followingprobability information: P(100) = 0.4, P(150) = 0.3, and P(200) = 0.3 e. Which alternative should be chosen based on the minimax regret criterion? f. Which alternative should be chosen using the expected monetary value (EMV) criterion? g. What is the expected value under perfect information (EVPI)? Show Work
AAA auto supply store sells snow tires which are ordered every Friday to meet next week's demand. The sales price for the most popular size is $50 per tire and its cost for AAA is $35. If too many tires are ordered AAA incurs an inventory carrying cost of $2 per tire. If AAA is out of stock, it forgoes the profits from missed sales. AAA has the option to order 100, 150, or 200 tires to meet next week's demand which can be either 100, 150, or 200 tires.Based on its historical demand distribution, assume that AAA Inc. has determined the followingprobability information: P(100) = 0.4, P(150) = 0.3, and P(200) = 0.3.a. Which alternative should be chosen based on the maximax criterion?b. Which alternative should be chosen based on the maximin criterion?c. Which alternative should be chosen based on the Lapalce criterion?d. Which alternative should be chosen based on criterion of realism with alpha = 0.7?e. Which alternative should be chosen based on the minimax regret criterion?f. Which…

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