The number of desks to be ordered. Inventory and supply chain models: The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

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Answer 1

Question

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

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Students have asked these similar questions

Customers at Joe’s Office Supply Store demand an -average of 6000 desks per year. Each time an order is placed, an ordering cost of $300 is incurred. The annual holding cost for a single desk is 25% of the $200 cost of a desk. One week elapses between the placement of an order and the arrival of the order. In parts a to d, assume that no shortages are allowed. a. Each time an order is placed, how many desks should be ordered? b. How many orders should be placed each year? c. Determine the total annual costs (excluding purchasing costs) of meeting the customers’ demands for desks. d. If the lead time is five weeks, what is the reorder point? (One year equals 52 weeks.) e. How do the answers to parts a and b change if shortages are allowed and a cost of $80 is incurred if Joe’s is short one desk for one year

The daily demand for printer paper at the School of Business is approximately normal with a mean of 15.2 boxes and a standard deviation of 1.6 per day. The Administrative Assistant reviews the inventory every 30 days, and the lead time is 5 days. The division set a policy of satisfying 96% of the demand for paper. If there are 125 boxes of printer paper in inventory at the beginning of this review period, how many boxes of printer paper should be ordered? What is the variance of demand during the review period plus the lead-time period? What is the standard deviation of demand during the review period plus the lead-time period? A. Variance = 76.80 Standard deviation = 8.76 B. Variance = 89.60 Standard deviation = 9.47 C. Variance = 9.47 Standard deviation = 89.60 D. Variance = 12.8 Standard deviation = 3.58

Samantha Ross is the procurement manager for the headquarters of a large Financial company chain with a central inventory operation. Ross’ quick-moving inventory item has a demand of 7,000 units per year. Each unit cost $120, and the inventory holding cost is $15 per unit per year. The average ordering cost is $31 per order. It takes about 6 days for an order to arrive. (This is a corporate operation, and there are 250 working days per year.) d) What is the optimal number of days in between any two orders? e) What is the annual cost of ordering and holding inventory? f) Including the cost of the 7,000 units. What is the total annual inventory cost?

Answer 2

Question

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Answer 6

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

Answer 7

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

Answer 8

b)

Summary Introduction

To determine: The number of orders to be placed each year.

Answer 9

b)

Summary Introduction

To determine: The number of orders to be placed each year.

Answer 10

c)

Summary Introduction

To determine: The total annual costs.

Answer 11

c)

Summary Introduction

To determine: The total annual costs.

Answer 12

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

Answer 13

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

Answer 14

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Answer 15

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 12.4 - Prob. 1P Ch. 12.4 - Prob. 2P Ch. 12.4 - Prob. 3P Ch. 12.4 - Prob. 4P Ch. 12.4 - Prob. 5P Ch. 12.4 - Prob. 6P Ch. 12.4 - Prob. 7P Ch. 12.4 - Prob. 8P Ch. 12.4 - Prob. 9P Ch. 12.4 - Prob. 10P

Solution Summary: The author explains that inventory and supply chain are one of the most important business decision areas for an organization.

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To determine: The number of orders to be placed each year.

To determine: The total annual costs.

To determine: The reorder point when the lead time is 5 weeks.

To determine: The change in the number of desks per order and the number of orders per year.

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Chapter 12 Solutions