Trying to figure out Inventory:*Please note - these are new numbers from the previous problems*A product has an annual demand of 16,122 units. The unit price is $58 each and the ordering cost is $99. The store uses a vearly inventory holding cost of 33% of the unit price. They have decided to order 78 units every time they order,What is the total annual cost of purchasing 78 units per order (purchasing, ordering, and holding)? (round to two decimal places)LA Moving to another question will save this response.C 78°F AP Type here to searchmsiSCROLLPAUSF12PRT SCRF10F11F9BRFSF6SYS ROF2F3FIECOBACKS%3D2367100 3% of the unit price. They have decided to order 78 units every time they order, instead of the EOQ amount.Question 16 of 22Close Window3:28 PM(日ツ8/16/202178°Fwww

Answered: What is the total annual cost of…

Business

Operations Management

What is the total annual cost of purchasing 78 units per order (purcha

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...

See similar textbooks

Similar questions

You are asked to manage the purchases of potatoes (10 kgs per bag). The annual demand = 1200 bags, Deliveredpurchase cost = 30/bags, Annual carrying cost percentage= 10percent, Order cost = 50/order. The lead time is 5 working days. Assuming 24 working days per month. Question: Suppose orders are placed only at review time. Find the optimal period and the optimal orderquantity.
Quantity to OrderDaily demand for a product is 10 units, with a standard deviation of 3 units. The review period is 30 days, and the lead time is 14 days. Management has set a policy of satisfying 98 percent of demand from items in stock. At the beginning of this review period, there are 150 units in inventory.How many units should be ordered?
Dennis Sport World, a chain of sporting goods stores, sells 360,000 tennis balls per year. The tennis balls cost Dennis Sport World RM15 per dozen. Annual inventory carrying costs are 20 percent of inventory price. The cost of placing and receiving an order are RM72. Assume the inventory replenishment occurs virtually instantaneously. Based on recent experience, Dennis Sport World uses 7 days delivery time for planning purposes. (Assume 360 days in a year) TASKS a) Calculate the Economic Order Quantity. b) Calculate the number of orders to be placed. c) Calculate the total annual inventory costs. d) Determine the reorder point.
(a) What is the expected jet fuel yearly average demand D?(b) Given D, find the order lot size Q that gives the economic order quantity (EOQ).(c) Given the EOQ, what is the total inventory holding cost?(d) Given the EOQ, what is the total inventory ordering cost?(e) Given the EOQ, what is the total annual inventory cost?(f) What is the time between orders in weeks? The airport is convinced that placing an order every season (every P = 13weeks) will be best. It is also aware that the expected demand will varywith a standard deviation of 20 tons, so it needs to take this information into account. (g) What is the protection period required by the proposed 13-week periodic review system?(h) The airport is required by the airlines to maintain a 99.75% service level.What is the required safety stock?(i) Calculate the order size (Q) when using P = 13.(j) What is the total annual inventory cost for the P = 3 inventory system?(k) What is the target inventory level (T)? The airport has shopped…
How do I find the Economic Order Quantity (EOQ), the optimal order quantity, and the total annual inventory cost (TC) for the products shown in the attached screenshot? Would the EOQ be ((2*C2*E2)/D2)^(1/2) for the CPU? What about the optimatal order quanitity and total annual inventory cost?
Please do G,H,I,J,K and L (a) What is the expected jet fuel yearly average demand D? =4160 tons(b) Given D, find the order lot size Q that gives the economic order quantity (EOQ). =60.39 unit(c) Given the EOQ, what is the total inventory holding cost?= $1067695.2(d) Given the EOQ, what is the total inventory ordering cost? =OC=$1067726.4(e) Given the EOQ, what is the total annual inventory cost?TIC=2135421.6 =1.32(f) What is the time between orders in weeks? = 39.39 The airport is convinced that placing an order every season (every P = 13weeks) will be best. It is also aware that the expected demand will varywith a standard deviation of 20 tons, so it needs to take this information into account. (g) What is the protection period required by the proposed 13-week periodic review system?(h) The airport is required by the airlines to maintain a 99.75% service level.What is the required safety stock?(i) Calculate the order size (Q) when using P = 13.(j) What is the total annual inventory…
Y5 consider a continuous review system. on hand inventory equals 300, and there is a scheduled receipt of 35 units and a backorder for 335 units. if the reorder point is 800 units, how much should be ordered? The answer is EOQ amount but i would like to know how that is the correct answer.
The maintenance department of a large hospital uses about 816 cases of liquid cleanser annually. Ordering costs are $12, carrying costs are $4 per case a year, and the new price schedule indicates that orders of less than 50 cases will cost $20 per case, 50 to 79 cases will cost $18 per case, 80 to 99 cases will cost $17 per case, and larger orders will cost S16 per case. Determine the optimal order quantity and the total cost Show your result on diagram with order quantity on X axis and cost on Y axis.
[item no.12] Which of the following formulas is correct about the production run model? a. Total produced during production run = dt b. Total used during production run = pt c. Annual holding cost = QCh(1-p/d)/2 d. Maxium inventory level = Q(1-d/p)
Do all work in Excel with Formulas An office supply store open 5 days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant at 250 boxes and when orders are placed, then entire shipment arrives at once. The cost per box is $22 and the inventory holding cost is 30%. Orders are placed at a cost of $40 each, including preparation time and communication charges, and the lead time is 2 days. a. Find the optimal order quantity. b. What is the reorder point? c. How often should an order be placed? d. What is the cycle time?
CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and other data for the problem: Price of copper $ 0.79 per pound up to 2,999 pounds $ 0.78 per pound for orders between 3,000 and 5,999 pounds $ 0.76 per pound for orders 6,000 pounds or greater Annual demand 50,000 pounds per year Holding cost 20 percent per unit per year of the price of the copper Ordering cost $ 30 Which quantity should be ordered?
In the past, Taylor Industries has used a fixed−time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's items. ITEMNUMBER Annual Usage Item Number 1 $ 2,100 11 $ 14,000 2 13,000 12 1,100 3 2,800 13 44,000 4 52,300 14 10,800 5 10,500 15 1,800 6 1,300 16 11,100 7 2,600 17 4,700 8 11,900 18 63,700 9 5,800 19 4,100 10 16,100 20 3,500 a. Classify each item in inventory using an ABC plan.