Suppose in an EOQ model backorders are used, and the backorder cost has increased whereas all other costs/variables besides (Total costs) remained the same. Which of the following is true due to the increase in the backorder cost? a) The intersection between the holding cost and setup cost is equal to the new backorder cost

Suppose in an EOQ model backorders are used, and the backorder cost has increased whereas all other costs/variables besides (Total costs) remained the same. Which of the following is true due to the increase in the backorder cost? a) The intersection between the holding cost and setup cost is equal to the new backorder cost

Name: Very very urgent Suppose in an EOQ model backorders are used, and the
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Description: Very very urgent Suppose in an EOQ model backorders are used, and the backorder cost has increasedwhereas all other costs/variables besides (Total costs) remained the same. Which ofthe following is true due to the increase in the backorder cost?a) Th

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 13P

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In the calculation of an optimal policy for an all-units discount schedule, you firstcompute the EOQ values for each of the three order costs, and you obtain: Q(0) =800, Q(1) =875, and Q(2) =925. The all-units discount schedule has breakpointsat 750 and 900. Based on this information only, can you determine what the optimal order quantity is? Explain your answer.
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 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.)c. What ordering policy is recommended by the least unit cost heuristic?
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.)b. What ordering policy is recommended by the part period balancing heuristic?
If the following data is known in determining the Quantity Discount with EOQ - Demand rate = 100.000 - Ordering Cost = 5000 - Holding/Carrying cost = 600 Price Range LOWER UPPER PRICE 1 1 1000 1000 2 1001 1500 900 3 1501 3000 800 4 3001 3500 700 5 3501 3750 650 6 3751 4000 600 Based on the data provided, determine the optimal order quantity and total cost for this case! 2 1001 1500 900 3 1501 3000 800 4 3001 3500 700 5 3501 3750 650 6 3751 4000 600
Open the A2 Liquor Company Excel file. Make the following changes: The profit for beer has increased to $6 per ton and its demand has increased to 5 tons per week. What is the profit under the optimal product mix? 14 12 18 16 Which of the following is an assumption of the basic fixed-order-quantity inventory model (for example, EOQ)? Ordering costs are variable. Lead times are constant. Lead times are unknown. Back-orders are allowed
Change the ordering simulation so that emergencyorders are never made. If demand in any week isgreater than supply, the excess demand is simplylost. Simulate the same (s, S) policies as in theexample.
Suppose that a product with an annual demand of 2400 units, a setup cost per production run of $8, and a holding cost of $1 per unit per year. With 200 working days in a year, conisder the following ordering plans: 1) order 600 units once each quarter and all 600 units will be delivererd in a single day 2) order 200 units once each month and all 200 units will be delivered in a single day 3) order 120 units each 6-month, and each order will be delivered over a period of 60 days a) Suppose that the items will be delivered at a rate of 40 pieces per day, what is the minimum overall costs in this case? b) Which ordering strategy has the lowest overall cost and why?
Suppose that a product with an annual demand of 2400 units, a setup cost per production run of $8, and a holding cost of $1 per unit per year. With 200 working days in a year, conisder the following ordering plans: 1) order 600 units once each quarter and all 600 units will be delivererd in a single day 2) order 200 units once each month and all 200 units will be delivered in a single day 3) order 120 units each 6-month, and each order will be delivered over a period of 60 days a) Calculate the annual holding and setup costs associated with each plan b) When items arrive in one batch, what is the optimal order quantity to minimize overall costs?
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?
Which of the following statements is true: (T, S) policies require more safety stock than (s, Q) policies to achieve the same CSL. An (s, Q) policy where both demand and lead-time are stochastic requires more safety stock than an (s, Q) policy where only the demand is stochastic. For an (s, Q) policy, the reorder level is always larger than the safety stock. All of the above.