What is the optimal order quantity? 80 units 800 units 40 units 400 units How many orders in a year? 20 orders 40 orders 20 units 40 units How many days between orders? 20 days 40 days 18.25 days 15 days How much is the total inventory cost? $1000 $2500 $2000 $3000
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A: Formula:
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A: The detailed solution is given in Step 2
Q: In economic order quantity EOQ model, manimum level of inventory is a. the same as the level of…
A: ANSWER IS AS BELOW:
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A: Given Data Annual demand (D) = 8000 transistors or units Ordering cost (S) = $30 per order Cost of…
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A: THe correct answer is
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A: The EOQ may be a company's optimal order quantity that minimizes its total costs associated with…
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A: Introduction: The term Business refers to an exchange of goods and services between the buyer and…
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A: A reorder point is the minimum unit quantity a specific product reaches to trigger inventory…
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A: Given information Selling price = 1000 boxes Cost = $2 Fixed delivery charge = $20 per order…
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Q: Answer the following true or false.c. The newsvendor model does not include a fixed order cost
A: The answer is true.
Q: The Warren W. Fisher Computer Corporation purchases 8,000transistors each year as components in…
A: Economic order quantity refers to the point where the inventory cost is minimum or optimal.
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A: Find the Given details below: Given Details: Demand 150 items/day Annual Demand (D) 54750…
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A: Given data: Ordering cost = $2,525 per order = S Carrying cost =35% of purchase price = 0.35 = H…
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A: Given that: d = 1400 Production units per year (p) = 250*12 = 3000 Unit Price (C) = $100 Holding…
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A: Order quantity should be chosen in such a way that the total costs are minimized and profits…
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailer allows…
A: Given: D = 12000 S = 200 OMR H = 1 OMR
Q: A product has a daily demand of 50 units. Ordering cost is RO 200, and holding cost is RO 3 per unit…
A: Daily Demand=50 units Number of working days in a year=240 workdays Annual Demand=50×240=12000 units…
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A: Every business has to maintain certain level of inventory to meet the requirements of its customer.…
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A: Given that, Ordering cost S = $40 Annual demand D = 1200 cases Carrying cost H = $3 Annual service…
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A: Below is the solution:-
Q: In Economic Order Quantity (EOQ) model, maximum level of inventory is, Select one: a. None of the…
A: The correct option is A: None of the answers In the Economic Order Quantity (EOQ) model, the…
Q: A local retailer anticipates an annual demand that product, and these shortages are backordered at a…
A: Given:D = 12000S = 200 OMRH = 1 OMR
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A: Annual demand = 4800 Kgs Number of working days = 6 days per week×52 weeks = 312 work days Lead time…
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A: Given, D = Silico annually used = 22,300 No. of days plant is operated = 115 H = annual holding cost…
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A: Inventory management is nothing but the organized process of culling, stocking, and selling both raw…
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A: Answer: For solving the question, we have the following information, annual demand of the product =…
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A: EOQ- Economic Order quantity provides the information of order quantity economically to the company.…
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Q: At Dot Com, a large retailer of popular books, demand isconstant at 20,400 books per year. The cost…
A:
Q: The assumptions of the production order quantity model are met in a situation where annual demand is…
A: Production order quantity refers to the order size that is produced in one batch of production. It…
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A: Weekly Demand = d = 620 units Weekly Production = p = 1735 units Set-up cost = S = $100 Cost per…
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailer allows…
A: Annual demand = 12000 unit Backorder rate= 3 OMR Ordering cost= 200 OMR Holding cost=1 OMR per unit…
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A: Given - Ordering cost = $54 Carrying cost = $27 per phaser Weekly Demand = $260 phaser Annual…
Q: A firm incurs $30 in fixed order costs per order and a holding cost per unit of $1per year. Annual…
A: Annual Demand = D = 10,000 units Ordering Cost = O = $30 per order Holding Cost = H = $1 per unit…
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A: Annual Demand = 100 units per month = 100*12=1200 units. Purchase Price = RM 20 Holding Cost = 10%…
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A: The model of economic production order quantity takes account for the daily production rate and the…
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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: An organization manufactures supplies for landscaping companies which has an annual demand of…
A: EOQ is a company's optimal order quantity that underestimates the total costs related to ordering,…
Q: At Dot Com, a large retailer of popular books, demand is constant at 20,400 books per year. The cost…
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A:
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- JAL Trading is a Hong Kong manufacturer of electroniccomponents. During the course of a year it requires container cargo space on ships leaving Hong Kong bound forthe United States, Mexico, South America, and Canada.The company needs 280,000 cubic feet of cargo space annually. The cost of reserving cargo space is $7000 and thecost of holding cargo space is $0.80/ft3. Determine howmuch storage space the company should optimally order,the total cost, and how many times per year it should placean order to reserve spaceRocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year.The purchase price is $20 per tire if fewer than 500 tires are ordered, $18 per tire if 500 or more-but fewer than 1,000- tires a re ordered, and $17 per tire if I ,000 or more tires areordered.a) How many tires should Rocky Mountain order each time it places an order?b) What is the total cost of this policy?Rocky Mountain Tire Centre sells 20,000 tires of a particular type per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20. per tire if fewer than 500 tires are ordered, $18. Per tire if more than 500 but fewer than 1,000 tires are ordered and $17. per tire if 1,000 or more tires are ordered. Quantity Unit Price 1-499 $20. 500-999 $18. 1000 & over $17 Based on available information, lead time demand for CD-ROM drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. What value of Z should be applied? How many drives should be carried as safety stock?
- A firm incurs $30 in fixed order costs per order and a holding cost per unit of $1per year. Annual demand is 10,000 units. The firm is required to order an integer multiple of500 units. What order quantity should the firm use to minimize ordering and holding costs?At Dot Com, a large retailer of popular books, demand isconstant at 20,400 books per year. The cost of placing anorder to replenish stock is $35, and the annual cost of holdingis $6 per book. Stock is received 5 working days after an orderhas been placed. No backordering is allowed. Assume 250working days a year.a. What is Dot Com’s optimal order quantity?b. What is the optimal number of orders per year?c. What is the optimal interval (in working days) betweenorders?The inventory of Metformin 500 mg tablets is to be maintained at a minimum par level of 300 tablets and a maximum par level of 1000 tablets. If 320 tablets are left on the shelf at the end of the day, how many bottles will you order to meet the inventory minimum? Metformin is available in package sizes containing 500-count and 1000-count. Group of answer choices 1 bottle of 500-count None, current inventory is less than the par level 1 bottle of 1000-count None, current inventory is greater than the par level
- At Dot Com, a large retailer of popular books, demand is constant at 32,000 books per year. The cost of placing an order to replenish stock is $10, and the annual cost of holding is $4 per book. Stock is received 5 working days after an order has been placed. No backordering is allowed. Assume 300 working days a year.a. What is Dot Com’s optimal order quantity?b. What is the optimal number of orders per year?c. What is the optimal interval (in working days) between orders?d. What is demand during the lead time?e. What is the reorder point?f. What is the inventory position immediately after an order has been placed?Rocky Mountain Tire Centre sells 20,000 tires of a particular type per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20. per tire if fewer than 500 tires are ordered, $18. Per tire if more than 500 but fewer than 1,000 tires are ordered and $17. per tire if 1,000 or more tires are ordered. How many tires should Rocky Mountain order each time it places an order? Quantity Unit Price 1-499 $20. 500-999 $18. 1000 & over $17 Based on available information, lead time demand for CD-ROM drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. What value of Z should be applied? How many drives should be carried as safety stock?The Warren W. Fisher Computer Corporation purchases 8,000transistors each year as components in minicomputers. The unit cost of each transistor is $10, and the cost of carrying one tran-sistor in inventory for a year is $3. Ordering cost is $30 per order. What are (a) the optimal order quantity, (b) the expectednumber of orders placed each year, and (c) the expected timebetween orders? Assume that Fisher operates on a 200-dayworking year.
- 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?An online retailer sells 1,500 t-shirts per year. The cost of the t-shirts to the store is $3.00 and the cost of placing an order is $15 per order. It cost $0.60 per t-shirt per year for the retailer to hold the t-shirts. The retailer sells the t-shirts for $9.99. Determine (a) the optimal order quantity, (b) the order frequency (c) the annual holding and setup cost.Pingu Company manufactures winter jackets. Setup costs are $2.00. Penguin manufactures 4,000 jackets evenly throughout the year. Using the economic order quantity approach, the optimal production run would be 200 when the cost of carrying one jacket in inventory for one year is 0.40. The given solution is this: 200 = 2*setup cost* Annual Demand / Carrying cost200 = 2*2*4000/ Carrying cost40000 = 16000 / Carrying costCarrying cost = 16000 / 40000Carrying Cost = 0.4 Hence, the cost of carrying one jacket in inventory for one year is 0.4 QUESTION: How did you get the 40,000 (that was divided to 16,000)?