OPERATIONS MANAGEMENT
2nd Edition
ISBN: 9781260238877
Author: CACHON
Publisher: RENT MCG
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Chapter 12, Problem 4PA
a)
Summary Introduction
To determine: The average inventory.
b)
Summary Introduction
To determine: The number of orders placed each year.
c)
Summary Introduction
To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.
d)
Summary Introduction
To determine: The annual ordering and annual holding costs.
e)
Summary Introduction
To determine: The annual ordering and annual holding costs.
f)
Summary Introduction
To determine: The sum of annual ordering and holding costs.
g)
Summary Introduction
To determine: The sum of annual ordering and holding costs while accepting the discount.
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Joe needs to purchase malt for his micro-brew production, His supplier charges $35 per delivery (no matter how much is delivered) and $1.20 per gallon of malt. Joe's annual holding cost per unit is 35% of the cost value of the unit. Joe uses 5000 gallons of malt per week. Assume that Joe operates 50 weeks per year, how many gallons d whole number) should Joe arder from his supplier with each order?
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Fursan Inc. needs 310 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it takes 14 work days to receive it. The annual holding cost is 15 % of purchase price. The price RO 1 per kg. The company is operating 6 days per week. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer Select one:
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d.
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If Bruno's storage vessel can hold only 6500 kg of milk, what would be Bruno's
e.
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Bruno's supplier's truck can carry 20,000 kg of milk. The supplier does not…
Chapter 12 Solutions
OPERATIONS MANAGEMENT
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