OPERATIONS MANAGEMENT
2nd Edition
ISBN: 9781260238877
Author: CACHON
Publisher: RENT MCG
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Question
Chapter 12, Problem 6PA
a)
Summary Introduction
To determine: The number of rebars that must be purchased from the supplier in each order.
b)
Summary Introduction
To determine: The sum of the annual ordering cost and holding costs per cinder block.
c)
Summary Introduction
To determine: The average inventory holding cost per day.
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Students have asked these similar questions
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is
3,000
rolls. The cost per roll is
$1,000,
and the annual holding cost is
28
percent of the cost. Each order costs
$75.
Part 2
a. How many rolls should Yellow Press order at a time?
Yellow Press should order
enter your response here
rolls at a time. (Enter your response rounded to the nearest whole number.)
Part 3
b. What is the time between orders? (Assume
200
workdays per year.)
The time between orders is
enter your response here
days. (Enter your response rounded to one decimal place.)
Dream Resorts buys custom - made boxes in bulkand uses them to pack its wine, which it bottles and sells in its on - location Restaurant/ Wine shop. The annual requirement of these boxes is 1200 and each box costs $30. The ordering and carrying costs are $10 per order and 20%, respectively. The supplier from whom Dream Resorts purchases these boxes sells them only in lots of 20, that is, you only purchase quantities in multiples of 20 boxes.
Required:
a) How many boxes should the confectioner order so as to minimise inventory total stocking costs?
b) If the supplier offers 2% discount on the cost of each box when the purchases are in quantities of 300 at a time, should the confectionewr accept this offer?
c) Suppose the supplier has decided that instead of the 2% discount offer, a price reduction of $0.25 will be used for the order quantities as shown in Table Q1:
Table Q1
Order quantity
Cost per box
Less than 100
$30.00
100 to 199
$29.75
200 or more
$29.50
What order…
The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer.If he were to order 16 cases of Stein beer at a time, what would be the length of an order cycle?
Chapter 12 Solutions
OPERATIONS MANAGEMENT
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