OPERATIONS MGMT.(EBOOK)W/MYOMLAB>IC<
15th Edition
ISBN: 9781269982153
Author: HEIZER
Publisher: PEARSON C
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Textbook Question
Chapter 12, Problem 10DQ
When quantity discounts are offered, why is it not necessary to check discount points that are below the EOQ or points above the EOQ that are not discount points?
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When quantity discounts are offered, why is it not necessary to check discount points that are below the EOQ orpoints above the EOQ that are not discount points?
Explain why it is not necessary to include product cost (price or price time quanity in the EOQ model, but the quantity discount model requires this information ?
Briefly explain the costs associated with EOQ model. If production cost goes up, what is the impact on the EOQ quantity?
Chapter 12 Solutions
OPERATIONS MGMT.(EBOOK)W/MYOMLAB>IC<
Ch. 12 - Question 1. Describe the four types of inventory.Ch. 12 - Question
2. With the advent of low-cost...Ch. 12 - Question
3. What is the purpose of the ABC...Ch. 12 - Question
4. Identify and explain the types of...Ch. 12 - Question 5. Explain the major assumptions of the...Ch. 12 - Question 6. What is the relationship of the...Ch. 12 - Question
7. Explain why it is not necessary to...Ch. 12 - Question 8. What are the advantages of cycle...Ch. 12 - What impact does a decrease in setup time have on...Ch. 12 - When quantity discounts are offered, why is it not...
Ch. 12 - What is meant by service level?Ch. 12 - Explain the following: All things being equal, the...Ch. 12 - Describe the difference between a fixed-quantity...Ch. 12 - Explain what is meant by the expression robust...Ch. 12 -
15. What is “safety stock”? What does safety...Ch. 12 - When demand is not constant, the reorder point is...Ch. 12 - How are inventory levels monitored in retail...Ch. 12 - State a major advantage, and a major disadvantage,...Ch. 12 - L. Houts Plastics is a large manufacturer of...Ch. 12 - Boreki Enterprises has the following 10 items in...Ch. 12 - Jean-Marie Bourjollys restaurant has the following...Ch. 12 - Lindsay Electronics, a small manufacturer of...Ch. 12 - William Bevilles computer training school, in...Ch. 12 - • 12.6 If D = 8,000 per month, S = $45 per order,...Ch. 12 - Henry Crouchs law office has traditionally ordered...Ch. 12 - Matthew Liotines Dream Store sells beds and...Ch. 12 - Southeastern Bell stocks a certain switch...Ch. 12 - Lead time for one of your fastest-moving products...Ch. 12 - Annual demand for the notebook binders at Duncans...Ch. 12 - Thomas Kratzer is the purchasing manager for the...Ch. 12 - Joe Henrys machine shop uses 2,500 brackets during...Ch. 12 - Abey Kuruvilla, of Parkside Plumbing, uses 1,200...Ch. 12 - ••• 12.15 M. Cotteleer Electronics supplies...Ch. 12 - •• 12.16 Race One Motors is an Indonesian car...Ch. 12 - Radovilsky Manufacturing Company, in Hayward,...Ch. 12 - Arthur Meiners is the production manager of...Ch. 12 - Cesar Rego Computers, a Mississippi chain of...Ch. 12 - Bell Computers purchases integrated chips at 350...Ch. 12 - Wang Distributors has an annual demand for an...Ch. 12 - Question 12.22 The catering manager of La Vista...Ch. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Question 12.26 Emery Pharmaceutical uses an...Ch. 12 - Question 12.27 Barbara Flynn is in charge of...Ch. 12 - Question 12.28 Based on available information,...Ch. 12 - Question 12.29 Authentic Thai rattan chairs...Ch. 12 - Question 12.30 Tobacco is shipped from North...Ch. 12 - Prob. 31PCh. 12 - Question 12.32 Chicagos Hard Rock Hotel...Ch. 12 - Question 12.33 First Printing has contracts with...Ch. 12 - Prob. 34PCh. 12 - Prob. 35PCh. 12 - Question 12.36 Cynthia Knotts oyster bar buys...Ch. 12 - Question 12.37 Henrique Correas bakery prepares...Ch. 12 - Question 12.38 University of Florida football...Ch. 12 - Prob. 39PCh. 12 - Question 12.40 A gourmet coffee shop in downtown...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Inventory Control at Wheeled Coach Video Case...Ch. 12 - Prob. 2.2VCCh. 12 - Prob. 2.3VC
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Compare and contrast the fixed quantity and fixed interval versions of EOQ. In what contexts will each be appropriate?arrow_forwardWhat is the EOQ and what is the lowest total cost?arrow_forwardCompare and contrast the fixed quantity version of EOQ with the fixed interval version. In which situations would each be used?arrow_forward
- Discuss why is it not necessary to include product cost in the EQQ model, but the quantity inventory system, discount model requires this information ?arrow_forwardExplain why it is not necessary to include product cost(price or price times quantity) in the EOQ model, but thequantity discount model requires this information.arrow_forwardDETERMINING INVENTORY MODELS FSYHILD is a manufacturing company of made to order face shield. It is producing products at a constant rate with a requirement of 5,500 face shields per quarter throughout the year. If ordering costs are P35.00 per order, unit cost is P10.00 per face shield, and annual inventory holding cost are charged at 30% of the units cost. A. What is the EOQ for this component? B. What is the expected time between orders? C. What are the total annual inventory and holding cost associated with your EOQ recommendation? D. Assuming a lead time of 5 days, what is the reorder point? E. What is the total cost if the management decides to increase the demand by 75%?arrow_forward
- If no safety stock is required, what would the re-order point be?arrow_forwardA 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?arrow_forwardCompany X has a demand of 75 Lakhs per year. Setup cost and holding cost are $29 and $35 per unit. Number of pieces in a order includes 2.3 Lakhs per order. Printing is done 300 days and 2 days to deliver this magazine. ⚫What can be the EOQ of this? With above data find the Setup Cost and Holding cost for a year. What is the Reorder Point. ⚫What is the annual demand to production ratio in this case. What does it indicate for the company?arrow_forward
- Meena Distributors has an annual demand for an airport metal detector of 1,420 units. The cost of a typical detector to Meena is $400. Carrying cost is estimated to be 19% of the unit cost, and the ordering cost is $25 per order. If Purushottama Meena, the owner, orders in quantities of 300 or more, he can get a 4% discount on the cost of the detectors. Should Meena take the quantity discount? Part 2 What is the EOQ without the discount? EOQ = enter your response here units (round your response to one decimal place). Part 3 Since the total cost with the discount is ▼ greater than less than the total cost without the discount, Meena ▼ should should not order 300 units at a time in order to qualify for the discount.arrow_forwardExplain the quantity of economic order (EOQ) and its effect on operating costs.arrow_forwardWang Distributors has an annual demand for an air-port metal detector of 1,400 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost,and the ordering cost is $25 per order. If Ping Wang, the owner,orders in quantities of 300 or more, he can get a 5% discount on thecost of the detectors. Should Wang take the quantity discount?arrow_forward
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