Need help! A-1 is incorrect. Your assistant has obtained the following freight rates from your carrier:Truckload (53,e00 lbs. each load):Less-than-truckload:$0.80 per ton-mile$1.20 per ton-mileNote: Per ton-mile = 2,000 lbs. per mile.a-1. Calculate the total cost for each supplier. (Round your answers to the nearest whole number.)Supplier 1Supplier 2Total cost6,838,020S6.804,740 Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The companyuses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the comingyear. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,050 units.Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agreeto reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use.The following data have been collectedRequirements (annual forecast)Weight per engineOrder processing costInventory carry cost12,600 units25 pounds165 per order20 percent of the average value of inventory per yearNote: Assume that half of lot size is in inventory on average (1.050/2 = 525 units).Two qualified suppliers have submitted the following quotations:SUPPLIER 1 SUPPLIER 2UNIT PRICEORDER QUANTITY1 to 1,499 units/order1,500 to 2,099 units/order3,000 + units/orderTooling costsDistanceUNIT PRICE24534532532S30529526$27,000130 miles$24,800100 milesYour assistant has obtained the following freight rates from your carrier

Given data for Supplier 1 and 2 Requirement (Annual forecast) 12,600 units Weight 25…

Answered: Your assistant has obtained the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter3: Introduction To Optimization Modeling

Section3.8: A Multiperiod Production Model

Problem 22P

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Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,000 each. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected: Requirements (annual forecast) 12,000 units Weight per engine 22 pounds Order processing cost $125 per order Inventory carry cost 20 percent of the average value of inventory per year Note: Assume that half of the lot size is in inventory, on average (1,000 ÷ 2 = 500 units). Two…
Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,200 units. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers, and you need to decide which to use, the following data have been collected. Requirements (annual forecast) 14,400 units Weight per engine 25 pounds Order processing cost $ 145 per order Inventory carry cost 20% of the avg. Value of inventory per year…
Models of inventory systems frequently consider the relationships among a beginning inventory,a production quantity, a demand or sales, and an ending inventory. For a givenproduction period j, letsj-1 = ending inventory from the previous period (beginning inventory for period j)xj = production quantity in period jdj = demand in period jsj = ending inventory for period ja. Write the mathematical relationship or model that shows ending inventory as a functionof beginning inventory, production, and demand.b. What constraint should be added if production capacity for period j is given by Cj?c. What constraint should be added if inventory requirements for period j mandate anending inventory of at least Ij?
Glorious Gadgets is a retailer of astronomy equipment. They purchase equipment from a supplier and then sell it to customers in their store. The function C(x)=1.5x+12500x^−1+5000 models their total inventory costs (in dollars) as a function of x the lot size for each of their orders from the supplier. The inventory costs include such things as purchasing, processing, shipping, and storing the equipment.A) What lot size should Glorious Gadgets order to minimize their total inventory costs? (NOTE: your answer must be the whole number that corresponds to the lowest cost.) B) What is their minimum total inventory cost?
The Hawkins Supply Company is currently faced with an inventory rotation problem. This difficulty stems from the fact that some supplies must be used prior to a stated expiration date. Upon receipt, a new shipment of these perishable items must be stacked beneath the boxes that are currently in inventory. A substantial amount of time is consumed in restacking the items according to their expiration dates.The company would like to reduce the double and sometimes triple handling of items. How can this goal be achieved? Are there alternative solutions which might also be effective?
ANT Infra orders two kinds of precast items: A and B for use in its projects from two different suppliers. The precasts are needed throughout the entire 52-week year. Precast A are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. While, precast B is ordered from a supplier who delivers by every three weeks. Data for both precast items are as follows:Item Precast A Precast BAnnual demand 10,000 5,000Holding cost (% of item cost)20% 20%Order cost $150 $25Lead time 4 weeks 1 weekSafety stock 55 units 5 unitsItem cost $10.00 $2.00 a. Employ Q system for precast A and calculate the EOQ, the reorder point, total inventory cost? b. Employ P system for precast B and estimate the target level inventory and total inventory cost?
An assembler orders two components from a single supplier. The assembler uses 200 units of the first component and 4000 units of the second component every month. The fixed transportation cost is $600. Also, the inspection and sorting costs are $100 for each component. The unit purchasing cost is $400 for the first component and $200 for the second component. The carrying cost is 20%. The assembler is trying to come up with an ordering plan that minimizes total holding and ordering costs. Find the best possible plan using the heuristic method. Calculate the average number of orders per month and order quantity for each component. In addition, calculate the total holding and ordering costs. Please show calculation in excel as well as answer
The production order quantity for this problem is approximately 332 units. daily demand rate = 64; daily production rate = 100. What is the average inventory on - hand ( in other words - the inventory for which you are paying Holding Costs ) In this problem ?
The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed. Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation: Let Dj = annual demand for item j Cj = unit cost of item j Sj = cost per order placed for item j i = inventory carrying charge as a percentage of the cost per unit W = the maximum amount of space available for all goods wj = space required for item j The decision variables are Qj, the amount of item j to order. The model is:…
The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed. Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation: Let Dj = annual demand for item j Cj = unit cost of item j Sj = cost per order placed for item j i = inventory carrying charge as a percentage of the cost per unit W = the maximum amount of space available for all goods wj = space required for item j The decision variables are Qj, the amount of item j to order. The model is: (view…
If a company has an ordering cost of $250, a carrying cost of $4 per unit, and annual product demand of 6,000 units, the total minimum inventory cost is approximately (Hint: use the optimal quantity value you find in the previous question) Group of answer choices $3,944 $3,464 $2,921 $3,250
Please complete the sup part: e,f and g. 1.B&H needs to decide how to manage its inventory of cameras. The demand for cameras at B&H is 200 cameras per week. Each time that B&H places an order for a new shipment of cameras, it must pay $80 in fixed processing fees. A camera costs B&H $60 to purchase. The cost for B&H to hold a camera in its store for one week is $4. Assume that the lead time for the delivery of a camera is 0 weeks.a. Suppose that B&H places orders for cameras in quantities of 50 cameras at a time and places a new order for cameras each time that it runs out. Draw a graph showing the number of cameras that B&H has on-hand in inventory at each point in time up until the time when it places its fourth-order. Label the points in time at which B&H places a new order. Assume that B&H places its first order for 50 cameras on day 0.b. Suppose again that B&H places orders for 50 cameras at a time. What will be B&H’s average holding…

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