The daily demand of the product. Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

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Answer 1

Question

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

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Emarpy Appliances produces all kinds of major appliances. Richard Feehan, the president of Emarpy, is concerned about the production policy for the company’s best-selling refrigerator. The demand for this has been relatively constant at 8,000 units per year. The production capacity for this product is 200 units per day. Each time production begins, it costs the company $120 to move materials into place, reset the assembly line and clean the equipment. The holding cost of a refrigerator is $50 per unit per year. The current total inventory cost for the production plan Emarpy is using is $10,800 (currently the company makes 400 refrigerators each time production is run). Assume there are 250 working days per year. Question 2: Suppose that Feehan finds out that he can purchase the same refrigerator from an external supplier for $200 each, where the order cost is $120 and the holding cost is still $50 per unit per year. If no stockouts are allowed and no discounts offered, what would be…

Emarpy Appliance is a company which produces all kinds of major. Bud Banis, the president of Emarpy, is concerned about the production policy for the company’s bestselling refrigerator. The annual demand for this has been about 8,000 units each year, and this demand has been constant throughout the year. The production capacity is 200 units per day. Each time production starts, it costs the company $120 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $50 per year. The current production plan calls for 400 refrigerators to be produced in each production run. Assume there are 250 working days per year. (b) If the company were to continue to produce 400 units each time production starts, how many days would production continue? (c) Under the current policy, how many production runs per year would be required? What would the annual set-up cost be? (d) If the current policy continues, how many refrigerators would be…

Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature oak file is estimated to be 5,000 units. The annual cost of carrying one unit in inventory is P10, and the cost to initiate a production run is P1,000. There are no miniature oak files on hard, and Cassie has scheduled four equal production runs of the miniature oak file for the coming year, the first of which is to be run immediately. Cassie has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Cassie does not maintain a safety stock, the estimated total carrying costs for the office fixtures for the coming year based on their current schedule is?The number of production runs per year of the miniature oak files that would minimize the sum of carrying costs and setup costs for the coming year is?

Answer 2

Question

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

b)

Summary Introduction

To determine: The number of day production must be carried out.

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

d)

Summary Introduction

To determine: The maximum and average inventory levels.

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Answer 6

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Answer 7

Chapter 12, Problem 30P

a)

Summary Introduction

To determine: The daily demand of the product.

Introduction: Inventory management is the process of ordering, storing and using inventory of the company such raw material, components and finished goods. It governs the flow of goods from manufacturers to warehouse and to the point of sale. The key function is to maintain record of flow of new or returned products which enters or leaves the company.

Answer 8

b)

Summary Introduction

To determine: The number of day production must be carried out.

Answer 9

b)

Summary Introduction

To determine: The number of day production must be carried out.

Answer 10

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

Answer 11

c)

Summary Introduction

To determine: The number production runs per year and annual setup cost.

Answer 12

d)

Summary Introduction

To determine: The maximum and average inventory levels.

Answer 13

d)

Summary Introduction

To determine: The maximum and average inventory levels.

Answer 14

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

Answer 15

e)

Summary Introduction

To determine: The total annual setup cost and holding cost.

Answer 16

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Answer 17

f)

Summary Introduction

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

Answer 18

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Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

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Solution Summary: The author explains that inventory management is the process of ordering, storing and using inventory of the company such raw material, components, and finished goods.

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To determine: The number of day production must be carried out.

To determine: The number production runs per year and annual setup cost.

To determine: The maximum and average inventory levels.

To determine: The total annual setup cost and holding cost.

To determine: The number of refrigerators to be produced in each production line to minimize the total annual inventory cost and the net saving in inventory.

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Chapter 12 Solutions