The sources that should be used and the size of the standing orders are to be calculated. Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

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Answer 1

Question

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.c. If the replenishment lead time for wafers is three months, determine the reorderpoint based on the on-hand level of inventory of wafers

A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.b. What is the optimal value of the holding and setup costs for wafers when theoptimal source is used?

A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.a. Which source should be used, and what is the size of the standing order?

Answer 2

Question

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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Answer 3

Question

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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Answer 4

Question

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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Answer 5

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

Answer 6

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Answer 7

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Answer 8

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

Answer 9

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

Answer 10

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

Answer 11

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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

The sources that should be used and the size of the standing orders are to be calculated. Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Solution Summary: The author explains how the optimal level of order quantity considers the cost that each source charges.

Concept explainers

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

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Chapter 4 Solutions

The sources that should be used and the size of the standing orders are to be calculated. Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Solution Summary: The author explains how the optimal level of order quantity considers the cost that each source charges.

Concept explainers

Interpretation:The sources that should be used and the size of the standing orders are to be calculated. Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Want to see the full answer?

Chapter 4 Solutions

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.