EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 9781478628385
Author: Olsen
Publisher: WAVELAND PRESS (ECONTENT)
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Question
Chapter 8, Problem 42AP
Summary Introduction
Interpretation: The order policy for the buttons by using silver metal method is to be determined.
Concept Introduction:
The optimal order policy is known as economic order quantity (EOQ) which is used to order the different quantities in such way that minimizes the holding cost and ordering cost.
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Catlea Merchandising is engaged in selling school shoesfor both boys and girls in their teenage years. Catlea needs 32,000 pairs of shoes in a year in order to satisfy the market demand. It costs ₱ 48 to place an order while ₱ 8 is needed to hold each quantity of shoe in Catlea's inventory. Upon checking on Catlea's supplier, it takes 8 days in between placing an order and eventually receiving it.
a. Determine the Economic Order Quantityb. Determine the number of order per monthc. Determine the reorder point
1. Gursoy Manufacturing Company originally estimated its annual demand for item
XYZ as 8000 units per year at a unit cost of $10. The order cost is $30 and the
holding cost per unit is $3 annually. Gursoy has discovered at the end of the year
that annual demand is only 6000 units and holding cost per unit per year are closer
to $4. The only good news is that Gursoy figured orders cost $25 to place instead
of $30 each. Gursoy now wants to know the significance of these mistakes on last
year's decisions.
a) What was the combined effect of these errors on the economic order
quantity for item XYZ?
b) What was the individual effect of each error on item XYZ economic order
quantity?
c) What was the combined effect of these errors on the minimum total variable
cost (fixed order cost and holding cost) of item XYZ for last year?
d) What was the individual effects of each error in demand on the minimum
total variable cost for last year?
Problem 1 . Product #12345 has an EOQ of 300 units. The annual consumption is 10,000 units. The desired probability of stocking out is 7%. From statistical analysis of this product, the standard deviation of demand during lead time σL = 300 units, and the manufacturing lead time is 10 days.
Determine the safety stock needed
Determine the reorder point. Assume that demand is over a 275-workday year.
How many units need to be ordered when stock on hand gets down the reorder point?
Chapter 8 Solutions
EBK PRODUCTION AND OPERATIONS ANALYSIS
Ch. 8.1 - Prob. 1PCh. 8.1 - Prob. 2PCh. 8.1 - Prob. 3PCh. 8.1 - Prob. 4PCh. 8.1 - Prob. 5PCh. 8.1 - Prob. 6PCh. 8.1 - Prob. 7PCh. 8.1 - Prob. 8PCh. 8.1 - Prob. 9PCh. 8.2 - Prob. 10P
Ch. 8.2 - Prob. 11PCh. 8.2 - Prob. 12PCh. 8.2 - Prob. 13PCh. 8.2 - Prob. 14PCh. 8.2 - Prob. 15PCh. 8.2 - Prob. 16PCh. 8.2 - Prob. 17PCh. 8.2 - Prob. 18PCh. 8.2 - Prob. 19PCh. 8.2 - Prob. 20PCh. 8.2 - Prob. 21PCh. 8.2 - Prob. 22PCh. 8.3 - Prob. 23PCh. 8.3 - Prob. 24PCh. 8.3 - Prob. 25PCh. 8.4 - Prob. 26PCh. 8.4 - Prob. 27PCh. 8.4 - Prob. 28PCh. 8.4 - Prob. 29PCh. 8.5 - Prob. 30PCh. 8.5 - Prob. 31PCh. 8.5 - Prob. 32PCh. 8.5 - Prob. 33PCh. 8.5 - Prob. 34PCh. 8.6 - Prob. 35PCh. 8.6 - Prob. 36PCh. 8.6 - Prob. 37PCh. 8.6 - Prob. 38PCh. 8.6 - Prob. 39PCh. 8.6 - Prob. 40PCh. 8 - Prob. 41APCh. 8 - Prob. 42APCh. 8 - Prob. 43APCh. 8 - Prob. 44APCh. 8 - Prob. 45APCh. 8 - Prob. 46APCh. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51AP
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