The most ideal amount of imported car mufflers that should be ordered per order and the time gap between each order. Introduction: In determining the optimal order quantity also known as the economic order quantity, a manufacturing company is able tomaximize its cost efficiency in terms of ordering cost & holding costs. It also helps in effective inventory management to minimize wastage.

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Answer 1

Question

Chapter 4.5, Problem 12P

A

Summary Introduction

To calculate: The most ideal amount of imported car mufflers that should be ordered per order and the time gap between each order.

Introduction:In determining the optimal order quantity also known as the economic order quantity, a manufacturing company is able tomaximize its cost efficiency in terms of ordering cost & holding costs. It also helps in effective inventory management to minimize wastage.

b

Summary Introduction

To calculate:The re-order point based on the level of on-hand inventory

Introduction:The re-order point is the threshold of stock you identify to make the next order. In light of the same, the re-order point makes sure you have adequate time to restock before it reaches zero. This will make sure of the smooth flow of a company’s production cycle.

c

Summary Introduction

To calculate:The additional holding and set-up costs involved if the company is to buy imported car mufflers only once a year.

Introduction:The advantage of placing an order once a year will depend on the many costs relate to the stock ordered. In the said example, the two costs related the order are holding cost and the set up cost, hence the answer is given based on those two cost factors.

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Students have asked these similar questions

A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 poundsannually. The beans are purchased from a local supplier for $2.40 per pound. The coffeehouse estimates that it costs $45 in paperwork and labor to place an order for thecoffee, and holding costs are based on a 20 percent annual interest rate.a. Determine the optimal order quantity for Colombian coffee.

A Mercedes dealer must pay $20,000 for each carpurchased. The annual holding cost is estimated to be 25%of the dollar value of inventory. The dealer sells an averageof 500 cars per year. He believes that demand is backloggedbut estimates that if he is short one car for one year he willlose $20,000 worth of future profits. Each time the dealerplaces an order for cars, ordering cost amounts to $10,000.Determine the Mercedes dealer’s optimal ordering policy.What is the maximum shortage that will occur?

Solve the following problem Retail managament Digital Stereo systems stocks a certain digital playback device that costs $700 to stock and has annual sales of 250 units. The cost to place an order is $100, carrying cost rate is $15 per unit per year. A) Company the optimal inventory policy, specifying the maximum inventory level, the percentage of sales that can be met from stock on hand, and the maximum number of units on backorder.

Answer 2

Question

Chapter 4.5, Problem 12P

A

Summary Introduction

To calculate: The most ideal amount of imported car mufflers that should be ordered per order and the time gap between each order.

Introduction:In determining the optimal order quantity also known as the economic order quantity, a manufacturing company is able tomaximize its cost efficiency in terms of ordering cost & holding costs. It also helps in effective inventory management to minimize wastage.

b

Summary Introduction

To calculate:The re-order point based on the level of on-hand inventory

Introduction:The re-order point is the threshold of stock you identify to make the next order. In light of the same, the re-order point makes sure you have adequate time to restock before it reaches zero. This will make sure of the smooth flow of a company’s production cycle.

c

Summary Introduction

To calculate:The additional holding and set-up costs involved if the company is to buy imported car mufflers only once a year.

Introduction:The advantage of placing an order once a year will depend on the many costs relate to the stock ordered. In the said example, the two costs related the order are holding cost and the set up cost, hence the answer is given based on those two cost factors.

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Answer 3

Question

Chapter 4.5, Problem 12P

A

Summary Introduction

To calculate: The most ideal amount of imported car mufflers that should be ordered per order and the time gap between each order.

Introduction:In determining the optimal order quantity also known as the economic order quantity, a manufacturing company is able tomaximize its cost efficiency in terms of ordering cost & holding costs. It also helps in effective inventory management to minimize wastage.

b

Summary Introduction

To calculate:The re-order point based on the level of on-hand inventory

Introduction:The re-order point is the threshold of stock you identify to make the next order. In light of the same, the re-order point makes sure you have adequate time to restock before it reaches zero. This will make sure of the smooth flow of a company’s production cycle.

c

Summary Introduction

To calculate:The additional holding and set-up costs involved if the company is to buy imported car mufflers only once a year.

Introduction:The advantage of placing an order once a year will depend on the many costs relate to the stock ordered. In the said example, the two costs related the order are holding cost and the set up cost, hence the answer is given based on those two cost factors.

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Answer 4

Question

Chapter 4.5, Problem 12P

A

Summary Introduction

To calculate: The most ideal amount of imported car mufflers that should be ordered per order and the time gap between each order.

Introduction:In determining the optimal order quantity also known as the economic order quantity, a manufacturing company is able tomaximize its cost efficiency in terms of ordering cost & holding costs. It also helps in effective inventory management to minimize wastage.

b

Summary Introduction

To calculate:The re-order point based on the level of on-hand inventory

Introduction:The re-order point is the threshold of stock you identify to make the next order. In light of the same, the re-order point makes sure you have adequate time to restock before it reaches zero. This will make sure of the smooth flow of a company’s production cycle.

c

Summary Introduction

To calculate:The additional holding and set-up costs involved if the company is to buy imported car mufflers only once a year.

Introduction:The advantage of placing an order once a year will depend on the many costs relate to the stock ordered. In the said example, the two costs related the order are holding cost and the set up cost, hence the answer is given based on those two cost factors.

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Answer 5

Chapter 4.5, Problem 12P

A

Summary Introduction

To calculate: The most ideal amount of imported car mufflers that should be ordered per order and the time gap between each order.

Introduction:In determining the optimal order quantity also known as the economic order quantity, a manufacturing company is able tomaximize its cost efficiency in terms of ordering cost & holding costs. It also helps in effective inventory management to minimize wastage.

b

Summary Introduction

To calculate:The re-order point based on the level of on-hand inventory

Introduction:The re-order point is the threshold of stock you identify to make the next order. In light of the same, the re-order point makes sure you have adequate time to restock before it reaches zero. This will make sure of the smooth flow of a company’s production cycle.

c

Summary Introduction

To calculate:The additional holding and set-up costs involved if the company is to buy imported car mufflers only once a year.

Introduction:The advantage of placing an order once a year will depend on the many costs relate to the stock ordered. In the said example, the two costs related the order are holding cost and the set up cost, hence the answer is given based on those two cost factors.

Answer 6

Chapter 4.5, Problem 12P

A

Summary Introduction

To calculate: The most ideal amount of imported car mufflers that should be ordered per order and the time gap between each order.

Introduction:In determining the optimal order quantity also known as the economic order quantity, a manufacturing company is able tomaximize its cost efficiency in terms of ordering cost & holding costs. It also helps in effective inventory management to minimize wastage.

Answer 7

Chapter 4.5, Problem 12P

A

Summary Introduction

To calculate: The most ideal amount of imported car mufflers that should be ordered per order and the time gap between each order.

Introduction:In determining the optimal order quantity also known as the economic order quantity, a manufacturing company is able tomaximize its cost efficiency in terms of ordering cost & holding costs. It also helps in effective inventory management to minimize wastage.

Answer 8

b

Summary Introduction

To calculate:The re-order point based on the level of on-hand inventory

Introduction:The re-order point is the threshold of stock you identify to make the next order. In light of the same, the re-order point makes sure you have adequate time to restock before it reaches zero. This will make sure of the smooth flow of a company’s production cycle.

Answer 9

b

Summary Introduction

To calculate:The re-order point based on the level of on-hand inventory

Introduction:The re-order point is the threshold of stock you identify to make the next order. In light of the same, the re-order point makes sure you have adequate time to restock before it reaches zero. This will make sure of the smooth flow of a company’s production cycle.

Answer 10

c

Summary Introduction

To calculate:The additional holding and set-up costs involved if the company is to buy imported car mufflers only once a year.

Introduction:The advantage of placing an order once a year will depend on the many costs relate to the stock ordered. In the said example, the two costs related the order are holding cost and the set up cost, hence the answer is given based on those two cost factors.

Answer 11

c

Summary Introduction

To calculate:The additional holding and set-up costs involved if the company is to buy imported car mufflers only once a year.

Introduction:The advantage of placing an order once a year will depend on the many costs relate to the stock ordered. In the said example, the two costs related the order are holding cost and the set up cost, hence the answer is given based on those two cost factors.

Answer 12

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Answer 13

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Answer 14

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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

Solution Summary: The author explains how to calculate the optimal order quantity and the time gap between each order.

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