←William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics:Demand D19,400 units/yearOrdering cost S$27/orderHolding cost H$5/unit/yeara) The EOQ for the workbooks is 458 (round your response to the nearest whole number).b) What are the annual holding costs for the workbooks? $ 1145 (round your response to the nearest whole number).c) What are the annual ordering costs? $(round your response to the nearest whole number).

Given data: Demand D = 19,400 units/year Ordering cost S =$ 27/order Holding cost H =$5units/year

Answered: William Beville's computer training…

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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William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 19,700 units/year Ordering cost S $26/order Holding cost H $4/unit/year b) What are the annual holding costs for the workbooks? $(round your response to the nearest whole number)
Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? A. P8,160 B. P5,280 C. P5,760 D. P2,400
Osprey Sports stocks everything that a musky fisherman couldwant in the Great North Woods. A particular musky lure hasbeen very popular with local fishermen as well as those whobuy lures on the Internet from Osprey Sports. The cost to placeorders with the supplier is $30/order; the demand averages4 lures per day, with a standard deviation of 1 lure; and the in-ventory holding cost is $1.00/lure/year. The lead time from thesupplier is 10 days, with a standard deviation of 3 days. It is im-portant to maintain a 97 percent cycle-service level to properlybalance service with inventory holding costs. Osprey Sports isopen 350 days a year to allow the owners the opportunity tofish for muskies during the prime season. The owners want touse a continuous review inventory system for this item.a. What order quantity should be used?b. What reorder point should be used?c. What is the total annual cost for this inventory system?
William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 20,000 units/year Ordering cost S $23/order Holding cost H $3/unit/year Part 2 a) The EOQ for the workbooks is ________ (round your response to the nearest whole number). Part 3 b) What are the annual holding costs for the workbooks? $________ (round your response to the nearest whole number). Part 4 c) What are the annual ordering costs? $_________ (round your response to the nearest whole number).
SAFETY STOCK WITH PROBABILISTIC DEMAND Memphis Regional Hospital stocks a “code blue” resuscitation kit that has a normally distributeddemand during the reorder period. The mean (average) demand during the reorder period is 350 kits,and the standard deviation is 10 kits. The hospital administrator wants to follow a policy that results instockouts only 5% of the time.(a) What is the appropriate value of Z ? (b) How much safety stock should the hospital maintain?(c) What reorder point should be used?APPROACH c The hospital determines how much inventory is needed to meet the demand 95% of thetime. The figure in this example may help you visualize the approach. The data are as follows:m = Mean demand = 350 kitssdLT = Standard deviation of demand during lead time = 10 kitsZ = Number of standard normal deviations
Joe Henry's machine shop uses 2,460 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,460 Holding cost per bracket per year $ 1.65 Order cost per order $20.00 Lead time 22 days Working days per year 250 a) What is the EOQ? b) What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? c) Given the EOQ, how many orders would be made each year? What would be the annual order cost? d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? e) What is the time between orders? f) What is the reorder point (ROP)?
Gamin Inc. produces various GPS devices with a wide assortment of different models for its customers. One item, RC1 is very popular. Keen of keeping its stock under control, a decision is taken to order only the optimum economic quantity, for this item, each time. You have the following information. Annual demand (units) 115,200 Purchase price per unit $ 300 Carrying/Holding costs per unit $ 8 Cost per order $ 200 Required: a)Fill the blanks in the following table using the above data. b)Determine the EOQ using the equation method and calculate the holding, ordering cost & their total cost at the EOQ level and also plot the graph at the EOQ level showing the numbers . c)Garmin Inc. has been offered a 2 per cent discount on the cost if it places orders in quantities of 19,200. Discuss whether the company should accept the discount and place larger orders, show your workings. No. of orders 1 10 20 30 90 120 Order size…
EOQ, reorder point, and safety stock Alexis Company uses 937units of a product per year on a continuous basis. The product has a fixed cost of $44 per order, and its carrying cost is $4 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate daily usage.) c. Determine the reorder point. d. Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity.
Briefly explain five of the assumptions leading to the basic economic order quantity model (EOQ) The Star Equipment Company purchases 54,000 bearing assemblies each year at a unit cost of $40.00. The holding cost is $9.00 per unit per year, and the ordering cost is $20.00. What is the economic order quantity? How many orders should be placed per year? If the lead time is one (01) month, what is the re-order point for the assemblies?
Your firm uses a continuous review system and operates 52 weeks per year. One of the Stock-Keeping Units (SKUs) has the following characteristics:Demand = 20000 units/year = 385 units/weekOrdering cost = $40/orderHolding cost = $2/unit/yearService level = 95 percentz=1.65Lead time = 2 weeksDemand is normally distributed, with a standard deviation of weekly demand of 100 units. a)Calculate the item's EOQ. b)Find the safety stock and reorder point that provide a 95 percent service level. c)For these policies, what are the annual costs of (i) holding the cycle inventory and (ii) placing orders?
A company, needs 410 kg of a material per month. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it, the annual holding cost is 20% of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. What is the expected time (in weeks) between orders? Round-up to the nearest integera. 185b. 115c. 100d. 111e. None is correct
The annual demand for the Super Thrive brand plant food manufactured by Cumberbatch and Dunst Indoor Plants Company is 120,000 pounds. The annual holding cost (also known as carrying charge) is $0.05 per pound, and Operations Manager Kirsten Benedict has calculated the cost of setting up machinery for making the plant food to be $20. 1) What is the annual holding (carrying) cost for the EOQ that you calculated? 2) What is the annual setup cost for the EOQ that you calculated? 3) Compare the total cost of inventory management (holding + setup cost) for the two quantities (5,000 and the EOQ you calculated) and comment on the difference. Based on your knowledge of the idea behind EOQ, what explains the differences (in words – no need to reconcile the exact differences quantitatively). Write three to five sentences in response to this question.

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