The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders. Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Mike’s Garage, a local automotive service and repair shop, uses oil filters at a fairly steady rate of 2,400 per year. Mike estimates that the cost of his time to make and process an order is about $50. It takes one month for the supplier to deliver the oil filters to the garage, and each one costs Mike $5. Mike uses an annual interest rate of 25 percent to compute his holding cost.a. Determine the optimal number of oil filters that Mike should purchase, and the optimal time between placement of orders.b. Determine the level of on-hand inventory at the time a reorder should be placed.c. Assuming that Mike uses an optimal inventory control policy for oil filters, what is the annual cost of holding and order setup for this item?

A local supermarket sells a popular brand of shampoo at a fairly steady rate of 380 bottles per month. The cost of each bottle to the supermarket is 45 cents, and the cost ofplacing an order has been estimated at $8.50. Assume that holding costs are based ona 25 percent annual interest rate. Stock-outs of the shampoo are not allowed.a. Determine the optimal lot size the supermarket should order and the time betweenplacements of orders for this product.

HAL Ltd. produces a line of high-capacity disk drives for computers. The housings for the drives are produced in Hamilton, Ontario at a rate of 250 housings per month, and shipped to the main plant in Toronto. The housings cost HAL $100 each to produce, and the setup cost for beginning a production run is $500. HAL uses the drive housings at a fairly steady rate of 1400 per year. Assume an annual interest rate of 25% for determining the holding cost. What is the optimal number of housings for HAL to produce in each production run? For the optimal production size, what proportion of each production cycle consists of uptime and what proportion consists of downtime? Assuming that HAL produces the optimal number of housings in each production run, what is the maximum on-hand inventory level of these housings? What is the annual cost of holding and setup?

Answer 2

Question

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 6

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 7

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 8

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 9

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 10

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 11

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 4.4 - Prob. 1P Ch. 4.4 - Prob. 2P Ch. 4.4 - Prob. 3P Ch. 4.4 - Prob. 4P Ch. 4.4 - Prob. 5P Ch. 4.4 - Prob. 6P Ch. 4.4 - Prob. 7P Ch. 4.4 - Prob. 8P Ch. 4.4 - Prob. 9P Ch. 4.5 - Prob. 10P

Concept explainers

Videos

Want to see the full answer?

Chapter 4 Solutions