EBK PRODUCTION AND OPERATIONS ANALYSIS
7th Edition
ISBN: 8220102480681
Author: Olsen
Publisher: WAVELAND
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 8.3, Problem 25P
Summary Introduction
Interpretation: The planned order release for component A and B along with resulting gross requirement schedules for component C, D and E are to be determined.
Concept Introduction:
The planned order release can be called as method which is based on the specified lead time till the planned receipt date is not received.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The maintenance department in Ranchi Hospital uses 816 cases of liquid cleanser annually. Ordering costs are $12, carrying costs are $4 per case a year, and the new price schedule indicates that orders of less than 50 cases will cost $20 per case, 50 to 79 cases will cost $18 per case, 80 to 99 cases will cost $17 per case, and larger orders will cost $16 per case. Determine the optimal order quantity and the total cost.
The maintenance department of a large hospital uses about 816 cases of liquid cleanserannually. Ordering costs are $12, carrying costs are $4 per case a year, and the new priceschedule indicates that orders of less than 50 cases will cost $20 per case, 50 to 79 caseswill cost $18 per case, 80 to 99 cases will cost $17 per case, and larger orders will cost $16per case. Determine the optimal order quantity and the total cost.
The primary objective in determining the Economic Order Quantity (EOQ) for an item is to:
O minimize the quantity of the item ordered from the supplier each time.
O minimize the annual total inventory cost for that item.
order the item from a supplier located in close proximity.
O maximize the time between orders.
O find a quick and easy way to answ
dependent or independent.
the lot sizing question, regardless of whether the demand for the item is
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.Similar questions
- Problem 20-39 (Algo) CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and other data for the problem: Price of copper $ 0.84 per pound up to 2,499 pounds $ 0.83 per pound for orders between 2,500 and 4,999 pounds $ 0.81 per pound for orders 5,000 pounds or greater Annual demand 54,000 pounds per year Holding cost 25 percent per unit per year of the price of the copper Ordering cost $ 30 Which quantity should be ordered? Quantity_____________poundsarrow_forwardThe maintenance department of a large hospital uses 816 cases of liquid cleaner annually. Ordering costs are $12, carrying costs are $4 per case per year, and the new price schedule indicates that orders of less than 50 cases will cost $20 per case, 50 to 79 cases will cost $18 per case, 80 to 99 cases will cost $17 per case, and larger orders will cost $16 per case. Determine the optimal order quantity and the total costarrow_forwardITEMS 18 to 20 ARE BASED ON THE FOLLOWING INFORMATION: The following information pertains to Emy Manufacturing Corporation's Product X: Annual demand 33,750 units Annual cost to hold one unit of inventory P15 Setup cost (or the cost to initiate a production run) P500 Beginning inventory of product X 0 At present, the Company produces 2,250 units of Product X per production runt for a total of 15 production runs per year. The company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product X. At present, the company's total annual inventory costs is P 7,500. c. P24,375. P16,875. d. P22,500.arrow_forward
- Average Inventory Calculation—Fixed–Order Quantity ModelSuppose the following item is being managed using a fixed–order quantity model with safety stock.Annual demand (D) = 1,000 unitsOrder quantity (Q) = 300 unitsSafety stock (SS) = 40 unitsWhat are the average inventory level and inventory turn for the item?arrow_forwardThe Great North Supermarket stocks Munchkin Cookies. Demand for Munchkins is 5000 boxes per year (365 days). It costs the store $60 per order of Munchkins, and it costs $0.70 per box per year to keep the cookies in stock. Once an order for Munchkins is placed, it takes four days to reveive the order from a food distributor. Determine the following: a. Optimal order size (EOQ) b.Minimum total annual inventoy cost c. Reorder point (R) d. Number of orders e. Time between ordersarrow_forwardHelp need. management accounting Lebar Daun Sdn Bhd is planning to use the economic order quantity model to determine the optimal order levels of raw materials. Material Z is consumed evenly over the year and the current usage is 120,000 units. The material is purchased in boxes and each box contains 12 units of material Z, at a price of RM252 per box. A safety stock of 200 boxes is kept. The cost of placing and handling orders is estimated to be RM6,300, which is based cost incurred for similar orders that have already made. The cost of RM6,300 was for 30 orders. The inflation of 2 per cent should be added to the above ordering costs. Besides, the company estimates to be charged the transporation cost of RM15 per order. It should be assumed that ordering costs change in proportion to the number of orders place. Other costs which relate to material Z such as insurance, interest and space costs for a year, were calculated at 15 % of the purchase price. Required: a. Calculate the order…arrow_forward
- 2. Identify the appropriate inventory model to obtain the optimal lot size for the given problem description: Rick Jones is chairman of this year’s Walk for Diabetes event. Each year, the organizers of the event typically have commemorative T-shirts available for purchase by the entrants in the walk. Rick needs to order the shirts well in advance of the actual event. Based on past walks, the organizers have determined that the demand for T-shirts is normally distributed with a mean of 100 and a standard deviation of 10. Rick plans to sell the T-shirts for $20 each. He pays his supplier $8 for each shirt and can sell any unsold shirts for rags at $2 each. Determine how many T-shirts Rick should order to maximize his expected profits. Select one: a. EOQ b. Single Period c. ROP d. Fixed Order Interval e. None of the listedarrow_forwardThe time-phased net requirements for the base assembly in a table lamp over the next six weeks are: Week 1 2 3 4 5 6 Requirements 335 240 180 320 320 200 The setup cost for the construction of the base assembly is $200, and the holding cost is $0.30 per assembly per week. What lot sizing do you obtain from the EOQ formula? Determine the lot sizes using the Silver–Meal heuristic. Determine the lot sizes using the least unit cost heuristic. Determine the lot sizes using part period balancing. Determine the lot size using the Wagner–Whitin algorithm. Compare the holding and setup costs obtained over the six periods using the policies found in parts (a) through (e) with the cost of a lot-for-lot policy.arrow_forward3. Identify the appropriate inventory model to obtain the optimal lot size for the given problem description: Rick Jones is chairman of this year's Walk for Diabetes event. Each year, the organizers of the event typically have commemorative T-shirts available for purchase by the entrants in the walk. Rick needs to order the shirts well in advance of the actual event. Based on past walks, the organizers have determined that the demand for T- shirts is normally distributed with a mean of 100 and a standard deviation of 10. Rick plans to sell the T-shirts for $20 each. He pays his supplier $8 for each shirt and can sell any unsold shirts for rags at $2 each. Determine how many T-shirts Rick should order to maximize his expected profits. a. Single Period b. Fixed Order Interval c. EOQ d. ROP e. None of the listedarrow_forward
- Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,100 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 8% of the items in inventory are A items, 30% are B items, and 62% are C items. She would like to set up a system in which all A items are counted monthly (every 21 working days), all B items are counted quarterly (every 60 working days), and all C items are counted semiannually (every 124 working days). How many items need to be counted each day? The total number of items that need to be counted each day is items (round your response to the nearest whole number).arrow_forwardThe TCC Art Gallery prints a brochure for visitors to the senior art showcase it sponsors at the college. There are about 16000 visitors per year to this event (held year round). Holding costs for the brochures are 25% and it costs $40 to place an order with the printer. The printer has offered the following discount schedule: Category Order Size Unit Cost 1 0 - 1499 $2.60 2 1500 - 2999 $2.30 3 3000 and over $1.90 Answer the following questions in a text box in the worksheet excel How many orders should be made? How many brochures should be printed at a time?arrow_forwardThe store wants to determine the Economic Order Size (EOQ) and Total Inventory Cost for this brand of carpet given an estimated annual demand of 10,000 yards of carpet, an annual carrying cost of P 37.50 per yard, and an ordering cost of P 7,500.00. The store would also like to know the number of orders that will be made annually and the time between orders (i.e., the order cycle), given that the store is open every day except 52 Sundays, Philippine Independence Day, New Year, and Christmas Day (which are assumed to fall not on Sundays) A. Using the computed optimal order size or EOQ, determine the optimum Total Cost. C. Determine the Order Cycle Timearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,