Rocky Mountain Tire Center sells 7,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 30% of the purchase price of the tires per year. The purchase price is $23 per tire if fewer than 200 tires are ordered, $19 per tire if 200 or more-but fewer than 5,000-tires are ordered, and $15 per tire if 5,000 or more tires are ordered. a) How many tires should Rocky Mountain order each time it places an order? Rocky Mountain's optimal order quantity is units (enter your response as a whole number). b) What is the total cost of this policy? Total annual cost of ordering optimal order size = $ (round your response to the nearest whole number).
Q: I don't understand the chart for C why is the gross requirement for week 3 30, week 5 is 190, and…
A: Find the Given details below:
Q: Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past…
A: Reorder point is an inventory level that initiates the new ordering process. It can be identified by…
Q: Critically analyze through the E-S-QUAL framework for measuring the service quality delivered…
A: The E-S-QUAL (Electronic Service Quality) framework is a model used to assess the quality of online…
Q: What is scaling impact in social entrepreneurship?
A: Entrepreneurship involves an ability and desire to establish, organize, operate, and assume the risk…
Q: Draw the distribution network of Coca-Cola company's supply chain and evaluate with 11 factors.
A: The strength of Coca-Cola's global presence rests on a meticulously crafted supply chain. From…
Q: Critically discuss the significance of incorporating the typical elements of a project communication…
A: Project management frameworks, such as Agile, Waterfall, or Hybrid methodologies, guide the…
Q: You are developing a performance progress report for a project you are managing. The following…
A: Project managers can assess a project's success with the aid of earned value (EV), often referred to…
Q: Write a short review on your employee. John has been working for you for 6 months. He is a good…
A: Human resource management (HRM) holds a pivotal role within organizations, focusing on optimizing…
Q: The reorder point for BB-1 is 120sets. What level of safety stock should be maintained For BB-1? The…
A: Given that stock out costs per set =$15, the carrying costs per set per year=$15, also given that…
Q: Beate Klingenberg manages a Poughkeepsie, New York, movie theater complex called Cinema 8. Each of…
A: Arrival rate (λ) = 180 per hourService rate ()= 270 per hour
Q: A restaurant has annual sales of $423,000, an average (Round your answer to 1 decimal place.) What…
A:
Q: A department store, installed in a 5-story building, plans to install a currency exchange module…
A:
Q: The supplies, demands, and transportation costs per unit are shown on the network. What is the…
A: For this transportation problem/question, I will prepare the spreadsheet model, then, I will solve…
Q: A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual…
A: Find the given details below: Processing time per unitProductAnnual…
Q: Identify an area of the Sobey store that has the characteristics of each production process type…
A: Production management is the aspect that deals with all the activities and functions of the…
Q: 1 2 3 4 Why? Why? Why? Why? Why is increasing toy paratrooper flight time important? Why is safer…
A: 1. Why is increasing toy paratrooper flight time important? - Increasing flight time adds…
Q: Termination from a job is an unpleasant experience which most employees have to go through at some…
A: A qualitative study on the aspect of research that assists the researcher in obtaining and exploring…
Q: Using figure 1, calculate the slack time for the job 40 10 t=3 mo A t=4 mo O a. 4 O b. 3 O c. 1 O d.…
A: Critical path method is project management tool (others e.g WBS, PERT). It uses flow chart of…
Q: The number of yearly breakdowns for the power generator observed over the past 20 years at Orlando…
A: Given data is shown below:
Q: What are five to seven roles in a core segment of a customer service business. They should be…
A: Customer service is a crucial aspect of any business. It involves providing assistance and advice to…
Q: An oil company must decide whether or not to drill an oil well in a particular area that they…
A: P(D) = Prior probability of dry state of nature = 0.3P(G) = Prior probability of reasonably good…
Q: Problem Statement: Project Control and Monitoring You are working on a manufacturing project…
A: Project control and monitoring play a pivotal role in ensuring the successful execution of any…
Q: Consider the information given below. Output Inputs 335,000 units 6,400 labor hours @ $14.00 per…
A: The efficiency with which a single input is utilized to generate a single output is known as…
Q: There are many project planning methodologies available and Babu (2019) lists some of them. Use the…
A: Agile project planning is a flexible and interactive method that breaks down the project into small…
Q: A small call center normally has four employees answering calls while open. On average, seven calls…
A: Processing time refers to the duration taken for an entire procedure to run and the number of…
Q: Michele Platini and Diego Maradona, planners for a company that makes several models of footballs…
A: Find the Given details below:Period123456TotalForecast2503003504005002502,050
Q: Africa’s Leading Bulk Maize Supplier and Distributor We are “Amaizing” Maize Suppliers in South…
A: Maize Suppliers, a South African maize supplier, is expanding its business globally and faces…
Q: What is the importance of of Multi-solving Problems/One Solution at this point in time? What's the…
A: The question is asking about the significance of multi-solving problems or finding one solution that…
Q: Founder of Masodi Organics on how she started a successful local beauty brand ‘We have enjoyed…
A: Masodi Organics is a beauty brand that was launched in 2018 by Liz Letsoalo. The brand aims to…
Q: 9. If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an…
A: Annual demand refers to the aggregate demand for a particular product at given price level by the…
Q: Bracket Manufacturing uses a Kanban system for a component. Daily demand is 1,100 units. Each…
A:
Q: 3. In the hierarchy of strategy, what purpose do corporate and business level strategies serve? Why…
A: NOTE : “Since you have posted multiple questions, we will provide the solution only to the first…
Q: Describe how managers can manage workforce diversity.
A: Workforce diversity encompasses the array of distinctions among individuals within an organization.…
Q: What is the sample size and what is the number of samples? Given the table above, draw a…
A: Control charts are statistical tools used in quality management to monitor and analyze processes…
Q: What is the summary of Ruth Chang: How Can Making Hard Choices Empower Us? and how does it realte to…
A: Decision-making within the context of organizational behavior is a dynamic process that goes beyond…
Q: Before setting up any new venture, it is vital that a budding entrepreneur does his groundwork and…
A: To check the viability of a new business idea, a comprehensive study and analysis is done. This…
Q: Determine and evaluate three motivational theories that support the relationship between monetary…
A: The relationship between monetary compensation and employee motivation is a perennial topic of…
Q: Why You Should Work for a Company That Values Diversity and Inclusion
A: The objective of this question is to understand the importance of diversity and inclusion in a…
Q: a) The overall reliability of the new temperature controller=% (enter your response as a percentage…
A: Let me state the given data, four integrated circuits have reliability of - 0.82, 0.84, 0.86,…
Q: Radovilsky, Manufacturing Company, in Hayward, California, makes flashing lights for toys. The…
A: Operating days in a year = 300 daysAnnual demand (D) = 11,900 flashing lightsDaily demand (d) =…
Q: Suppliers A, B, and C supply components to three plants -- F, G, and H via two transshipment…
A: Effective supply chain management is essential for optimizing the flow of goods and minimizing costs…
Q: i can I get help on this please? I am stuck!! Question: lumber and plywood. In a given week, the…
A: LumberPlywoodProfit2538Quantity Produced 11400Quantity Required 10100Quantity Required 01150
Q: Dan's Auto Detailing business performs two major activities: exterior cleanup and interior…
A: Find the given details below:
Q: he local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce…
A: Overage costs in inventory management refer to the expenses incurred due to excessive stock levels…
Q: Describe the changes that should occur to minimize the likelihood of these problems in the future.…
A: From the standpoint of open systems, the Ancol instance highlights the challenges that businesses…
Q: Before setting up any new venture, it is vital that a budding entrepreneur does his groundwork and…
A: Business idea is the aspect of the business that is concerned with the concept that is used by the…
Q: a. How many different paths are there through the network? b. What is the number of the last node in…
A: NOTE: We are allowed to do the first three sub-parts only.
Q: What are the benefits of corporate Volunteer Programs? Explain.
A: The objective of this question is to understand the benefits of corporate volunteer programs.…
Q: What is the summary of Dan Ariely: When Are Our Decisions Made For Us? and how does It realte to…
A: Organizational behavior studies human behavior in organizational settings and it considers how this…
Q: How does integrating customer feedback play a role in enhancing products and services?
A: In the realm of business, the integration of customer feedback stands as a linchpin for enhancing…
Hi,
I need help solving this Operations Management problem. Thank you!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 11 images
- Rocky Mountain Tire Centre sells 20,000 tires of a particular type per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20. per tire if fewer than 500 tires are ordered, $18. Per tire if more than 500 but fewer than 1,000 tires are ordered and $17. per tire if 1,000 or more tires are ordered. Quantity Unit Price 1-499 $20. 500-999 $18. 1000 & over $17 Based on available information, lead time demand for CD-ROM drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. What value of Z should be applied? How many drives should be carried as safety stock?Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year.The purchase price is $20 per tire if fewer than 500 tires are ordered, $18 per tire if 500 or more-but fewer than 1,000- tires a re ordered, and $17 per tire if I ,000 or more tires areordered.a) How many tires should Rocky Mountain order each time it places an order?b) What is the total cost of this policy?Pingu Company manufactures winter jackets. Setup costs are $2.00. Penguin manufactures 4,000 jackets evenly throughout the year. Using the economic order quantity approach, the optimal production run would be 200 when the cost of carrying one jacket in inventory for one year is 0.40. The given solution is this: 200 = 2*setup cost* Annual Demand / Carrying cost200 = 2*2*4000/ Carrying cost40000 = 16000 / Carrying costCarrying cost = 16000 / 40000Carrying Cost = 0.4 Hence, the cost of carrying one jacket in inventory for one year is 0.4 QUESTION: How did you get the 40,000 (that was divided to 16,000)?
- Parasol Systems sells motherboards for personal computers. For quantities upthrough 25, the firm charges $350 per board; for quantities between 26 and 50,it charges $315 for each board purchased beyond 25; and it charges $285 eachfor the additional quantities over 50. A large communications firm expects torequire these motherboards for the next 10 years at a rate of at least 140 peryear. Order setup costs are $30 and holding costs are based on an 18 percentannual interest rate. What should be the size of the standing order?ABC firm uses roughly 3,400 pounds of chemical dye a year. Currently, the firm purchases 300 pounds per order and pays P120.00 per pound. The supplier has just announced that orders of 1,000 pounds or more will be filled at a price of P80.00 per pound. The manufacturing firm incurs a cost of P4,000.00 each time it submits an order and assigns an annual holding cost of 17% of the purchase price per pound. a. Determine the order size that will minimize the total cost.b. If the supplier offered the discount at 1,500 pounds instead of 1,000 pounds, what order size would minimize total cost?A confectioner buys plastic boxes in bulk and uses them to pack chocolates. The annual requirement of these boxes is 1,200, and each box costs $30. The ordering and carrying costs are $10 per order and 20%, respectively. The supplier from whom the confectioner purchases these boxes sells them only in lots of 25, that is, you only purchase quantities in multiples of 25 boxes. If the supplier offers 2% discount on the cost of each box when the purchases are in quantities of 300 at a time, should the confectioner accept this offer?
- EOQ formula gives the order quantity that minimizes the total ordering and inventory holding cost. Although it may be thought that the simplifying assumptions of the EOQ model limits the applicability of this concept to a variety of cases, in practice, it provides satisfactory results. The reason for this is the robustness of the total cost function with respect to the choice of Q. In other words, if another order quantity is used instead of the optimal one, the overall effect of this choice on the total cost function is not that much. The objective of this question is to investigate the robustness of EOQ. The purchase price of an electronic component is $100 per unit. The holding cost is calculated directly from the opportunity cost of the money tied up according to a market interest rate of 10% per year. The annual demand is 6000 units per year and the ordering cost is $12 per order. a- What is the optimal order quantity and the optimal total ordering and holding cost? b.If the order…A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)d. Which method resulted in the lowest-cost policy for this problem?A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)a. What ordering policy is recommended by the Silver–Meal heuristic?
- 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?The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost, and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed. Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation: Let Dj = annual demand for item j Cj = unit cost of item j Sj = cost per order placed for item j i = inventory carrying charge as a percentage of the cost per unit W = the maximum amount of space available for all goods wj = space required for item j The decision variables are Qj , the amount of item j to order. The model is: In…Rocky Mountain Tire Centre sells 20,000 tires of a particular type per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20. per tire if fewer than 500 tires are ordered, $18. Per tire if more than 500 but fewer than 1,000 tires are ordered and $17. per tire if 1,000 or more tires are ordered. How many tires should Rocky Mountain order each time it places an order? Quantity Unit Price 1-499 $20. 500-999 $18. 1000 & over $17 Based on available information, lead time demand for CD-ROM drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. What value of Z should be applied? How many drives should be carried as safety stock?