Loose Leaf for Operations Management in the Supply Chain: Decisions and Cases 7e
7th Edition
ISBN: 9781260151954
Author: SCHROEDER, Roger G
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 14, Problem 3P
The local Toyota dealer has to decide how many spare shock absorbers of a particular type to order for repairing Toyota automobiles. This shock absorber has a demand of four units per month and costs $25 each. The carrying charge is 30 percent per year, and the ordering cost is $15 per order.
- a. What is the EOQ for this item?
- b. How often will the dealer reorder this part?
- c. What is the annual cost of ordering and carrying this part?
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The local Toyota dealer has to decide how many spare shock absorbers of a particular type to order for repairing Toyota automobiles. This shock absorber has a demand of four units per month and costs $25 each. Thecarrying charge is 30 percent per year, and the ordering cost is $15 per order.a. What is the EOQ for this item?b. How often will the dealer reorder this part?c. What is the annual cost of ordering and carrying this part?
Your distribution company has an annual demand of 1,400 lawn mowers. The cost of a lawn mower is $400.
Carrying cost is estimated to be 20% of unit cost, and the ordering cost is $25 per order.
If you order in quantities of 330 or more, you can get a 5% discount.
Do a complete “EOQ with Discount” calculation and determine the optimal order quantity.
Please show all calculations.
Basic EOQ
If a company has an ordering cost of $250, a carrying cost of $4 per unit, and annual product demand of 6,000 units, the optimal order quantity is approximately
923
1,027
751
866
Chapter 14 Solutions
Loose Leaf for Operations Management in the Supply Chain: Decisions and Cases 7e
Ch. 14.S - eXcel Suppose that for problem 1 in the chapter,...Ch. 14.S - Prob. 2PCh. 14.S - For problem 2 in the chapter, suppose the Grinell...Ch. 14.S - A producer of electronic parts wants to take...Ch. 14 - Identify the different types of inventories (raw...Ch. 14 - Why are stockout costs difficult to determine?...Ch. 14 - What is the difference between a requirements...Ch. 14 - Compare and contrast the management of finished...Ch. 14 - For a given service level, why does a P system...Ch. 14 - Under what circumstances might CPFR be useful, and...
Ch. 14 - Prob. 7DQCh. 14 - What is the appropriate role of inventory turnover...Ch. 14 - Suppose you are managing a chain of retail...Ch. 14 - The Always Fresh Grocery Store carries a...Ch. 14 - The Grinell Machine Shop makes a line of metal...Ch. 14 - The local Toyota dealer has to decide how many...Ch. 14 - Prob. 4PCh. 14 - The famous Widget Company sells widgets at the...Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - An electronics retailer carries a particular...Ch. 14 - An electronics retailer carries a particular...Ch. 14 - The local Toyota dealer has to decide how many...Ch. 14 - The Suregrip Tire Company carries a certain type...Ch. 14 - The Suregrip Tire Company carries a certain type...Ch. 14 - eXcel 13. The Cover-up Drapery Company carries...Ch. 14 - Suppose you are the supplier of the Cover-up...
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