XYZ Pharmaceuticals sells COVID testing kits. Calculate the Economic Order Quantity, or EOQ, if annual demand is 20,000 testing kits, inventory storage costs average 20 percent, the unit price per kit is $50, and ordering costs are $25.
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XYZ Pharmaceuticals sells COVID testing kits. Calculate the Economic Order Quantity, or EOQ, if annual demand is 20,000 testing kits, inventory storage costs average 20 percent, the unit price per kit is $50, and ordering costs are $25.
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- Hello, can someone here help me find the Economic Order Quantity with the given information: Average weekly demand: 50 units, Order cost: $20/order, Carrying cost: 25%, Unit production cost: $200, Desired service level: 98.5%, and Z score for desired service level: 2.17. Ill greatly appreciate it!Grey Wolf Lodge is a popular 500-room hotel in the North Woods. Managers need to keep close tabs on all room service items, including a special pine-scented bar soap. The daily demand for the soap is 275 bars, with a standard deviation of 30 bars. Ordering cost is $10 and the inventory holding cost is $0.30/bar/year. The lead time from the supplier is 5 days, with a standard deviation of 1 day. The lodge is open 365 days a year. a. What is the economic order quantity for the bar of soap? b. What should the reorder point be for the bar of soap if management wants to have a 99 percent cycle-service level? c. What is the total annual cost for the bar of soap, assuming a Q system will be used?Grey Wolf Lodge is a popular 500-room hotel in the North Woods. Managers need to keep close tabson all room service items, including a special pine-scented bar soap. The daily demand for the soap is275 bars, with a standard deviation of 30 bars. Ordering cost is $10 and the inventory holding cost is$0.30/bar/year. The lead time from the supplier is 5 days, with a standard deviation of 1 day. The lodgeis open 365 days a year.a. What is the economic order quantity for the bar of soap?b. What should the reorder point be for the bar of soap if management wants to have a 99 percentcycle-service level?c. What is the total annual cost for the bar of soap, assuming a Q system will be used?
- The Cerebro Computer Store purchase printers for $100 each. Demand for this is constant during the year, and annual demand is forecasted to be 1350 units. The holding cost is $20 per unit per year, while the cost of ordering is $90 per order. There are 270 working days per year and the lead-time is 8 days. What is the annual order cost? Enter your answer with two decimal places.The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually. The wheat must be purchased in multiples of 2,000 bushels. Ordering costs, which include grain elevator removal charges of P3,500, are P5,000 per order. Annual carrying costs are 2 percent of the purchase price of P5 per bushel. The company maintains a safety stock of 200,000 bushels. The delivery time is 6 weeks. 1. What is the EOQ? 2. At what inventory level should an order be placed to prevent having to draw on the safety stock? 3. What are the total inventory costs, including the costs of carrying the safety stock? 4. The wheat processor agrees to pay the elevator removal charges if Strawberry Bread will purchase wheat in quantities of 650,000 bushels. Would it be to Strawberry Bread’s advantage to order under this alternative?Allen Enterprises uses a continuous-review inventory control system for one of its most popular computer games. The firm operates 50 weeks in a year with an average lead time of 9 weeks. The annual demand is 12,000 games, with a standard deviation of 245 games. Ordering Costs are $30, with Holding costs per game of $38 per year. What is the economic order quantity for this item? If Allen Enterprises wants to provide a 95-percent cycle-service level, what should be the reorder point?
- A pipe manufacturer requires a chemical for making plastic at the rate of 6,000 gallons per year. The cost of keeping the chemical storage includes both the cost of the special security precautions in the storage space and borrowing money on short-term loans to pay for the purchase; this works out to about $10 per gallon per year. Ordering costs, which include cost of special transportation, work out to $200 per order. The chemical is bought at $45 per gallon. What is the EOQ and annual total cost?Demand for a popular athletic shoe is nearly constant at 1600 pairs per week for a regional division of a national retailer. The cost per pair is $64. It costs $75 to place an order, and annual holding costs are charged at 25% of the cost per unit. The lead time is 3 weeks. One year has 52 weeks.a. What is the Economic Order Quantity?b. What is the reorder point?c. What is the cycle time?d. What is the total annual cost?A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. The jewelry firm operates 200 days per year. Usage rate is 25 stones per day, and ordering costs are $48. a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Round your intermediate calculations and final answer to the nearest whole number.)b. If annual carrying costs are 30 percent of unit cost, what is the optimal order size? (Round your intermediate calculations and final answer to the nearest whole number.)c. If lead time is six working days, at what point should the company reorder?
- RCR Company has a secret ingredient in its production. This ingredient costs the company P60 each from the supplier and requires 5-day lead time. The ordering cost is P25 per order and the carrying cost per unit is 10% of purchase price. (EOQ is 2,400 units). Use 360 days. Determine the following: a. Annual demandA jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.30 per stone for quantities of 600 stones or more, $9.40 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. The jewelry firm operates 175 days per year. Usage rate is 25 stones per day, and ordering costs are $48. a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Round your intermediate calculations and final answer to the nearest whole number.) Order quantity _____________ stones b. If annual carrying costs are 20 percent of unit cost, what is the optimal order size? (Round your intermediate calculations and final answer to the nearest whole number.) Optimal order size ________ stonesThe Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually. The wheat must be purchased in multiples of 2,000 bushels. Ordering costs, which include grain elevator removal charges of P3,500, are P5,000 per order. Annual carrying costs are 2 percent of the purchase price of P5 per bushel. The company maintains a safety stock of 200,000 bushels. The delivery time is 6 weeks. What is the EOQ? What are the total inventory costs, including the costs of carrying the safety stock? The wheat processor agrees to pay the elevator removal charges if Strawberry Bread will purchase wheat in quantities of 650,000 bushels. Would it be to Strawberry Bread's advantage to order under this alternative?