What is the carrying cost for the toy manufacturer? A toy manufacturer uses 100,000 rubber wheels per year for itsdump truck series. The firm makes its own wheels, which it can produce at a rate of 12,000 per day. The toy trucks areassembled uniformly over the entire year. Carrying costs is $2 per wheel a year. Setup cost for a production run ofwheels is $75. The firm operates 240 days per year. D = 100,000 wheels/year S = $75 H = $2 per wheel/year p = 12,000wheels/day u = 100,000 wheels per 240 days or 417 wheels/day$2691$1500$2547$2371

Given data is Annual demand (D) = 100,000 wheels Production (p) = 12000 per day Carrying cost (H) =…

Answered: What is the carrying cost for the toy…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A store sells university coffee mugs. Daily demand is 25 mugs with a standard deviation of 4 mugs per day. Each mug costs $7.85. Ordering costs are $11. The carrying costs are $2 per year. The store is open 250 days per year. Lead time is 6 days with a standard deviation of 1.6 days. Desired service level is 98%. Calculate the EOQ (round your answer to the nearest whole number) 2. CAREFUL! YOUR NUMBERS HAVE CHANGED A store sells university logo hats. Daily demand is 22 hats with a standard deviation of 4 hats per day. Each hat costs $7.85. Ordering costs are $12. The carrying costs are $1 per year. The store is open 250 days per year. Lead time is 4 days with a standard deviation of 1.6 days. Desired service level is 98%. Calculate the ROP with safety stock.
Golden Crust Bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual holding costs are $75 per bag. Once an order for flour is placed, it takes six (6) days to receive the order from the flour factory. The bakery operates 350 days per year. Calculate the following: Economic Order Quantity Expected number of orders (Order Frequency) Average inventory The annual holding cost The annual ordering cost The total annual cost of inventory management Reorder point If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost?
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A company in Hungary manufactures and sell the product "Mini Bike". The company operates at maximum capacity, producing seven days a week, which makes 50 000 units per year. (To make it simple, we assume that a year has 50 weeks.) The value of a Mini Bike unit leaving production is €100. The cost of capital is estimated to 20%. The cost for holding inventory is 15%, which gives a total inventory carrying cost percentage of 35%. No safety stock is kept in Hungary. Mini Bike is distributed to a wholesaler in the UK, where it's sold to the end customers. There are two transportation alternatives - by rail or by truck: By rail means a dispatch every 14 days. The transportation time is one week. The cost is €4/unit. By truck means a dispatch every week. The transportation time is two days. The cost is €6/unit. In the UK, the wholesaler has a safety stock corresponding to half a week of sales. Which distribution alternative gives the lowest total cost when considering the transportation…
A company in Hungary manufactures and sell the product "Mini Bike". The company operates at maximum capacity, producing seven days a week, which makes 50 000 units per year. (To make it simple, we assume that a year has 50 weeks.) The value of a Mini Bike unit leaving production is €100. The cost of capital is estimated to 20%. The cost for holding inventory is 15%, which gives a total inventory carrying cost percentage of 35%. No safety stock is kept in Hungary. Mini Bike is distributed to a wholesaler in the UK, where it's sold to the end customers. There are two transportation alternatives - by rail or by truck: . By rail means a dispatch every 14 days. The transportation time is one week. The cost is €4/unit. . By truck means a dispatch every week. The transportation time is two days. The cost is €6/unit In the UK, the wholesaler has a safety stock corresponding to half a week of sales. Me. What is the Inventory holding cost in the UK, if transported by train? =€/year Mf. What is…
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