The Lemma Company manufactures and sells ten products. Managers find ways to reduce the setup and inventory-holding costs by one-half. What effect will this have on the EOQs for the ten products
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A: ANSWER IS AS BELOW:
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A: THE ANSWER IS AS BELOW:
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The Lemma Company manufactures and sells ten products. Managers find ways to reduce the setup and inventory-holding costs by one-half. What effect will this have on the EOQs for the ten products?
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- If you are an engineer for an automobile company, the annual requirements for spare parts are 3600 units for the assembly section. The cost of each item is 14.5 RO and the ordering cost is 0.4 RO. Storage cost is 14 % of an item cost. Find a-i) Economic order quantity. a-ii) Optimum cost. b) In the above problem if the supplier is offering a discount of 12 % of the item cost, the storage cost will increase to 15 %. then, Find: b-i) Economic order quantity; ( b-ii) Optimum cost. (Based on an EOQ-type ordering criterion, what costmust be taken to zero if the desire is to have an orderquantity of a single unit?Edwarldo’s Manufacturing uses 2,400 units of a product per year on a continuous basis. The product Carrying Cost are $60 per year and Ordering Cost are $250. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. Show Computations and Explanations. A. Calculate the Economic Order Quantity (round up the answer to the nearest whole unit) (Format: 111) B. Calculate the Total Cost per year to order and carry this item. (Format: 1,111) C. Their supplier has notified the company that if they increase their order quantity by 58 units, they will give the company a discount. Calculate the Dollar Discount that the company will have to at least give to Edwarldo’s Manufacturing to be indifferent. (Format: 111)
- Explain why it is not necessary to include product cost(price or price times quantity) in the EOQ model, but thequantity discount model requires this information.A printing company uses 2,000 reams of a certain type of paper in a year. Thecost of holding one ream of paper in inventory per year is US $0.60. Theordering cost per order is US$30. The vendor that supplies the paper to theprinting company has just announced a quantity discount schedule given in thefollowing table. What is the optimum number of reams to buy at one time?Quantity Ordered (in Reams) Price per Ream(in US dollars)0 - 499 $ 8.00500 to 999 $ 7.20 1000 to 1499 $ 6.201500 + $ 5.00Alina Limited is a manufacturer of widgets orders components for use in manufacturing. The estimated demand for the components during the coming year is 15,000. Order costs are $100 per order; carrying costs are $12 per component. Using the economic order quantity model What is Alina Ltd’s optimum order quantity? If the supplier guarantees a three (3) day delivery on any order that is placed, What is the re-order point?
- The following information regarding inventory policy was assembled by the GB Inc. The company uses a 50-week year in all calculations: Sales: 10,000 units per year Order quantity: 2,000 units Safety stock: 1,300 units Lead time: 4 weeks The reorder point is: a. 3,300 units b. 2,100 units c. 100 units d.300 unitsGenesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma.Example: 10,000 Required: a. Compute the economic order quantity. b. How many orders would be placed under the EOQ policy? c. Compute the annual ordering cost for the EOQ. d. Compute the annual carrying cost for the EOQ. e. Compute the total inventory-related cost at the EOQ.Explain why it is not necessary to include product cost (price or price time quanity in the EOQ model, but the quantity discount model requires this information ?
- Basic EOQ If a company has an ordering cost of $250, a carrying cost of $4 per unit, and annual product demand of 6,000 units, the optimal order quantity is approximately 923 1,027 751 866The following information regarding inventory policy was assembled by the GB Inc. The company uses a 50-week year in all calculations: Sales: 10,000 units per year Order quantity: 2,000 units Safety stock: 1,300 units Lead time: 4 weeks The reorder point is: 3,300 units 2,100 units 100 units 1,300 units2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order.