Suppose that R&B Company has a soft drink product that shows a constant annual demand rate of 3600 cases. Ordering costs are $20 per order and holding costs are $0.77. Find the EOQ. Round to two decimal places. __________________ Find the order cost using the EOQ as the quantity. Round to two decimal places. _______________

Suppose that R&B Company has a soft drink product that shows a constant annual demand rate of 3600 cases. Ordering costs are $20 per order and holding costs are $0.77. Find the EOQ. Round to two decimal places. ____ Find the order cost using the EOQ as the quantity. Round to two decimal places. _

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.
the company expects to sell 19,200 units next year. it operates 360 days a year. annual carrying cost is P32 per unit ordering cost is P150. A. what is the length of an order cycle in days? (4 decimals) B. what is the total annual cost at EOQ? show solution
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,800 cases. A case of the soft drink costs R&B $3. Ordering costs are $20 per order and holding costs are 25% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy. a. economic order quantity (round your answer to the nearest integer.) _____450_______ b. reorder point ______76______ c. cycle time (in days) (round your answer to two decimal places.) ______29.61______ d. total annual cost (in $) (round your answer to two decimal places.) _____?_______ ***I am asking the question with the ? symbol. I have been able to locate the numbers for the first three but I am having issues computing my answers for the last one.
Custom Computers, Inc. assembles custom home computersystems. Th e heat sinks needed are bought for $12 each and areordered in quantities of 1300 units. Annual demand is 5200 heatsinks, the annual inventory holding cost rate is $3 per unit, andthe cost to place an order is estimated to be $50. Calculate thefollowing:(a) Average inventory level(b) Th e number of orders placed per year(c) Th e total annual inventory holding cost(d) Th e total annual ordering cost(e) Th e total annual cost
Given a basic EOQ model in which holding cost is $7.50 per unit per month, demand is 25 units per month, and ordering cost is $15.00 per order, determine the EOQ. a. 200 b. 100 c. 50 d. 10
Company XYZ makes bicycles. XYZ produces 400 bicycles a month. They must buy tires from a supplier at a cost of $20 per tire. The inventory holding cost rate is 15% and ordering costs $50 per order. Part i) Let’s assume that there is no shortage inventory allowed. Calculate optimal annual order quantity Calculate annual total inventory cost ^already have the answer for this one. Just input the whole question so it would make more sense. Part ii) Let’s assume that shortage inventory is allowed. With that being said, we know that the shortage cost per unit of item is $5 per year. <<this is the one that I am stuck on. Calculate optimal annual order quantity Calculate annual total inventory cost Hint: Each bicycle has two tires.
Please show work so I can understand it. A company decides to establish an EOQ for an item. The annual demand is 200,000 units. The ordering costs are $40 per order, and inventory-carrying costs are $16 per unit per year. Calculate the following: (a). The EOQ in units. (b). Number of orders per year. (c). Annual ordering cost, annual holding cost, and annual total cost
Assume that JAO, Inc., a manufacturer of electronic test equipment, uses 14,400 units of an item annually. Its order cost is P500 per order, and the carrying cost is P10 per unit per year. It requires 10 days to place and receive an order. 1. The ordering costs is 5,696 4,026 6,000 4,8002. The inventory costs is 6,000 12,000 9,600 8,052
A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days ayear. Storage and handling costs for the paper are $30 a year per box, and it costs approximately$60 to order and receive a shipment of paper. a. What order size would minimize the sum of annual ordering and carrying costs?b. Compute the total annual cost using your order size from part a.c. Except for rounding, are annual ordering and carrying costs always equal at the EOQ?d. The office manager is currently using an order size of 200 boxes. The partners of the firmexpect the office to be managed “in a cost-efficient manner.” Would you recommend that theoffice manager use the optimal order size instead of 200 boxes? Justify your answer.
A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days ayear. Storage and handling costs for the paper are $30 a year per box, and it costs approximately$60 to order and receive a shipment of paper.a. What order size would minimize the sum of annual ordering and carrying costs?b. Compute the total annual cost using your order size from part a.c. Except for rounding, are annual ordering and carrying costs always equal at the EOQ?d. The office manager is currently using an order size of 200 boxes. The partners of the firmexpect the office to be managed “in a cost-efficient manner.” Would you recommend that theoffice manager use the optimal order size instead of 200 boxes? Justify your answer.
Please do not give solution in image format thanku A mail-order house uses 16,820 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. Number of Boxes Price per Box 1,000 to 1,999 $1.25 2,000 to 4,999 1.20 5,000 to 9,999 1.15 10,000 or more 1.10 a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal order quantity boxes b. Determine the number of orders per year.
Please do not give solution in image format thanku Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering tape is $1 per order, and carrying costs are 40 cents per roll a year. Lead-time is three days. a) Ignoring the demand uncertainty (i.e., looking only at average values), find the economic order quantity (EOQ) and the reorder point (ROP). b) Consider now the uncertainty. The order quantity remains the same. If the target is to have a 99% annual service level, what should be the ROP