The EOQ model with quantity discounts attempts todetermine:a) the lowest amount of inventory necessary to satisfy a certain service level.b) the lowest purchase price.c) whether to usc a fiXed-quantity or ftXed-period order policy.d) how many units should be ordered.e) the shortest lead time.
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| The EOQ model with quantity discounts attempts to determine: a) the lowest amount of inventory necessary to satisfy a certain service level. b) the lowest purchase price. c) whether to usc a fiXed-quantity or ftXed-period order policy. d) how many units should be ordered. e) the shortest lead time. |
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- The EOQ model with quantity discounts attempts todetermine:a) the lowest amount of inventory necessary to satisfy acertain service level.b) the lowest purchase price.c) whether to use a fixed-quantity or fixed-period orderpolicy.d) how many units should be ordered.e) the shortest lead timeThe purpose of EQQ is: A. measure the cost of ordering inventory B. to lower the level of inventory C. to determine the optimal amount of inventory to order D. to find the number of days before inventory needs to be reorderedAn EOQ model that incorporates quantity discounts is used to determine: a. whether to use fixed-quantity or fixed period order policy b. what is the lowest amount of inventory necessary to satisfy a certain service level c. how many units should be ordered d. what is the lowest purchasing price
- 4 In the EOQ model, determining the optimal order quantity requires us to ______. a increase number of orders along with quantity ordered at any time b strike a balance between quantity and quality of materials ordered c strike a balance between ordering and holding costs d increase number of orders depending on the volume discounts provided 6 The total cost in the EOQ is ______. a insensitive to minor deviations in the order quantity from the EOQ amount b sensitive to minor deviations in the order quantity from the EOQ amount c insensitive to major deviations in the order quantity from the EOQ amount d sensitive to deviations in the order quantity from the EOQ amount by more than 20% 7 Sales and operations planning deal with ______ decision-making. a strategic b tactical c operational d weeklyYou have found the EOQ for a given item. The optimal time between replenishments (T*) is 9.3 weeks. Since you have to manage many different items, you are trying to minimize costs and coordinate your orders following the Power of Two Policy. Taking this into account, which of the following statements is true? Select all correct answers You should order this item every sixteen weeks. Changing the order frequency using this policy will increase the cost by no more than 6% of the optimal Total Relevant Cost. You should order this item every eight weeks. You should order this item every six weeks. You should order this item every four weeks. None of the above.This is a 2-part question scenario based on EOQ and Reorder Point: You have been selling your best selling TV at a rate of 44 per day with a standard deviation of 5. Average lead time for the this model of TV is 6 days with a standard deviation of 2 days. At what inventory level do you order to ensure a 95% service level? You have been selling the tires at a rate of 78 per day with a standard deviation of 3. Average lead time for the bicycle tires you need is 83 days. At what inventory level do you order to ensure a 90% service level?
- Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1300 units. Annual demand is 5200 heat sinks, the annual inventory holding cost rate is $3 per unit, and the cost to place an order is estimated to be $50. Calculate the following: (a) Average inventory level (b) The number of orders placed per year (c) The total annual inventory holding cost (d) The total annual ordering cost (e) The total annual costBanana Inc. a Company that markets skin care products . The annual demond is 2400 units and ordering cost is 10 per order . The holding cost per year is 0.30 .Amount of the working days of the is 250 days in a year , Lead time of the order is 2 days . a. What is the optimal order size? b. What is the optimal number of orders per year? c. What is the optimal number of days between orders? d. What is the annual inventory cost? e. If the lead time were 2 days, what would be the reorder point? f. For what value of ordering cost would 1000 units of order size be optimal? g. Determine how often the firm should order. h. Determine the size of each order ı. At what price should the firm order?Henry Crouch’s law office has traditionallyordered ink refills 60 units at a time. The firm estimates thatcarrying cost is 40% of the $10 unit cost and that annualdemand is about 240 units per year. The assumptions of thebasic EOQ model are thought to apply.a) For what value of ordering cost would its action be optimal?b) If the true ordering cost turns out to be much greater thanyour answer to (a), what is the impact on the firm’s ordering policy?
- Ground Coffee shop uses 3 kgs of a specialty tea weekly; each kg. costs 16 MU.Carrying costs are 2 MU/kg/week because space is very scarce. It costs the firm 7 MU toprepare an order. Assume the basic EOQ model with no shortages applies. Assume 52weeks/year.a) How many kgs should Ground to order at a time?b) What is total annual inventory cost?c) How many orders should ground place annually?d) How many days will there be between orders(assume 310 operating days)? Please mention formulas and do it in detail so I can understand.Hayes Electronics assumed with certainty that the ordering cost is $450 per order and the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degree of uncertainty. Consider four cases of variation in the model parameters: (a) Both ordering cost and carrying cost are 10% less than originally estimated, (b) both ordering cost and carrying cost are 10% higher than originally estimated, (c) ordering cost is 10% higher and carrying cost is 10% lower than originally estimated, and (d) ordering cost is 10% lower and carrying cost is 10% higher than originally estimated. Determine the optimal order quantity and total inventory cost for each of the four cases. Prepare a table with values from all four cases and compare the sensitivity of the model solution to changes in parameter values.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