A company stocks an item that is consumed at the rate of 20 units each day. Every time an order is placed for new supply, $ 100 must be paid. A unit inventory held in stock for one week will cost $ 0.15. Lead time is 3 days. d. What is the total cost if the order quantity is 300 more than EOQ? e What is the optimum number of orders (rounded to the closest integer) that the company has to place each year? f What is the level of inventory at the reorder point?
Q: n the order-up-to model, the standard deviation of the order quantities is higher than the standard…
A: Order-up-to is an inventory model. the level of stocks is periodically reviewed and the amount of…
Q: Daily demand for fresh cauliflower in the ZZ-Warehouse store follows normal distribution with mean…
A: Given that: Mean (μ) = 100 Standard Deviation (σ) = 20 Cost = $50 Selling Price = $70 Salvage cost =…
Q: A grocer purchases plums for $2.95 per pound and sells them for $4.62 per pound. At the end of the…
A:
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One…
A: THE ANSWER IS AS BELOW:
Q: CU Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to…
A: Annual Demand (D) = 51000 Order Cost (O) = 30 Holding Cost (H) = 30 % of Cost per unit Economic…
Q: Diskup produces a variety of personal computer products. High-density 3.5-inch disksare produced at…
A:
Q: Assume that Triksi Co. makes footballs and is trying to determine the quantity of leather it should…
A: The detailed solution is given in Step 2.
Q: XYZ Print Inc. uses plain paper for copying needs. Weekly demand for that paper follows a normal…
A: The expected on-hand inventory is the amount of product that a business anticipates needing in the…
Q: The demand for a product in a UPS warehouse follows a normal distribution , for which the mean is…
A: Find the Given details below: Given details: Demand Mean 1000 Units per month Standard…
Q: Each year, Y Company purchases 20,000 units of an item that costs $640 per unit. The cost of placing…
A: Given: EOQ = Q = 2DSH = 2×20000 units ×480150 = 128000 = 357.77 = 358 units approx
Q: Vetox sells industrial chemicals. One of their inputs can be purchased in either jugs orbarrels. A…
A: Vetox sells industrial chemicals. One of their inputs can be purchased in either jugs orbarrels. A…
Q: XYZ Print Inc. uses plain paper for copying needs. Weekly demand for that paper follows a normal…
A: Given data: Weekly average demand=100 and the standard deviation =50, each week, a replenishment…
Q: A component used in a manufacturing facility is ordered from an outside supplier.Because the…
A: k= 200 wherein, k is total cost h = (.005)(.65) = .00325/unit µ h = 3.25/thousand.…
Q: XYZ Print Inc. uses plain paper for copying needs. Weekly demand for that paper follows a normal…
A: Units to order = Order upto level - Onhand inventory - Order quantity Standard deviation in given…
Q: Lia ITZY has determined that the annual demand for number 6 screws is 100,000 screws. Lia, who works…
A: Given data is Annual demand(D) = 100,000 Order cost(S) = $10 Holding cost = 0.5(0.01) = $0.005
Q: A component used in a manufacturing facility is ordered from an outside supplier.Because the…
A:
Q: Lia ITZY has determined that the annual demand for number 6 screws is 100,000 screws. Lia, who works…
A: The detailed solution is given in Step 2.
Q: A company stocks an item that is consumed at the rate of 30 units each day. Every time an order is…
A: Economic order quantity is the optimal quantity that the business needs to buy the inventory to…
Q: A component used in a manufacturing facility is ordered from an outside supplier.Because the…
A: Solution: C(1) = 200 WHEREIN C(1) is total cost h = (.005)(.65) = .00325/unit µ h…
Q: Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is…
A: first calculate economic order quantity for each price as shown below:demand = 20,000ordering cost…
Q: Kids’ toys makes an order once each year an the reorder point, without safety stock, is 200 toys.…
A: Given data: Reorder point without safety stock is 200 toys Holding cost (H)= $5 Cost of stock-out…
Q: A service station uses 2500 oil filters during the course of a year, and this usage is constant…
A: This question is related to the topic of Inventory Management and this topic falls under the…
Q: An electronic manufacturer in San Francisco receives its motherboards from a supplier in Hong Kong.…
A: Given data Lead time (LT) = 3 weeks Cost = $19 Holding cost (H) = $0.6 per week Service level =…
Q: OfficePro sells calculators at a rate of 3 per day. When the company places an order from its…
A: Given: Selling rate = 3 per day Optimal order size = 80 units not > 10% chances of out of stock…
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One…
A: Given data: Monthly average demand, d = 290 Standard deviation of monthly demand, s = 75 Annual…
Q: A local retailer anticipates an annual demand 15000 units of a product. The retailer allows…
A: Below is the solution:-
Q: The demand for an electronic component is normally distributed with an average daily demand of 500…
A: In the above question, we have following data, these are as stated below: Average daily demand=500…
Q: Basic EOQ: A Barbie manufacturer uses approximately 22,300 silicon annually. These silicon are used…
A: Given, D = Silico annually used = 22,300 No. of days plant is operated = 115 H = annual holding cost…
Q: Open the A2 Liquor Company Excel file. Make the following changes: The profit for beer has increased…
A: Note: - Since the data of the excel file is not given for the first question, we will answer the…
Q: ir he achual onder quantity is the ecnomie order quantity in a problem that mets the asmumptione of…
A: The concept of Operation Management: Operation management is the management that applies to a…
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One…
A: Lot size-reorder point system is one of the multi period models. This system is denoted by decision…
Q: You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-findspices.…
A: Project management schedule contains a list of a project related activities and deliverables,…
Q: Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUS at a constant…
A: EOQ model that is the Economic order quantity model of inventory management is used to minimize its…
Q: Suppose inventory is managed using the order-up-to model. The inventory position is 20and demand in…
A: In-stock probability In-Stock Probability is the probability that all demand is fulfilled in a given…
Q: Change the ordering simulation so that emergency ordersare never made. Instead, assume that all…
A: Enter the value o in cells 144 191. This will ensure there are never emergency orders. Enter…
Q: Jam costs $10/jar, requires a 6mo. lead time, and Will sell for $35/jar. If you stock out, you'll…
A: EOQ stands for Economic Order Quantity. It is a measurement used in the field of Operations,…
Q: A valve manufacturer plans to produce 25,000 units of a special valve next year. The production rate…
A: Planned production (R) = 25,000 units Holding cost (H) = $4 per unit per year Production rate (P)…
Q: Children's art sets are ordered twice each year by KINGSWAY Company and the reorder point, without…
A: Demand and lead-time are called random variables. The inventory can be divided into two categories:…
Q: 53. Average demand for a particular item is 1,200 units per year. It costs $100 to place an ord for…
A: Given- Annual Demand (D)= 1200 units Ordering or Setup Cost (S)= $100 Holding Cost (H) = $24 per…
Q: Halloween is the big holiday for a candy manufacturer—more than half of its salesoccur in the month…
A: Organization is a place where different tasks are done by many people to achieve some objective or…
Q: An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One…
A: Given data Ordering cost = $100 per order Monthly demand (D) = 300 Lead time = 5 days Monthly…
Q: A food processor purchases corn for use in its products. The firm uses 700 pounds of corn per week…
A: Optimal order quantity is the quantity that company should purchase so that their total inventory…
Q: . Custom Computers, Inc. assembles custom home computersystems. Th e heat sinks for the central…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: An electronic manufacturer in San Francisco receives its motherboards from a supplier in Hong Kong.…
A: Given Data Lead time (LT) = 3 weeks Cost = $16 per units Holding cost (H) = $0.5 per week…
Q: The manager of a hardware store decides to use theEOQ with shortages model to determine the…
A: In the above question, it is given that the managers use EOQ with shortages model. With economic…
Q: Parasol Systems sells motherboards for personal computers. For quantities upthrough 25, the firm…
A: Hence, the EOQ is 12 units.
Q: A firm experiences demand with a mean of 100 units perday. Lead time demand is normally distributed,…
A: Calculation of Annual cost of Holding safety stock Thus, the given value is E(X) = 1000Standard…
Q: A firm experiences demand with a mean of 100 units per day. Lead time demand is normally distributed…
A: Daily Demand = 100 units per day Mean = 1000 units Standard Deviation = 200 units Holding Cost = H =…
Q: PC World stocks and sells a particular brand of personal computer. It costs the store £ 460 each…
A: The optimal order quantity is the quantity that the company need to buy so that its annual inventory…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A company stocks an item that is consumed at the rate of 30 units each day. Every time an order is placed for new supply, $ 120 must be paid. A unit inventory held in stock for one week will cost $ 0.14. What is the total annual cost if the order quantity is 200 more than EOQ? What is the optimum number of orders (rounded to the closest integer) that the company has to place each year? Assume that the company has a standing policy of not allowing shortages in demand.The materials manager of a tire manfacturer must predict periodically place order for a key chemical one of the raw materials used in manufacturing uses the chemical at a rate of 300lbs each week and the lead time of delivery is 4 days. Assume that the manufacturing operation runs 5 days a week. At what point should the chemical be reorderedd a. when 1200lbs are remaining b. where 0lbs are remaining c. where 375lbs are remaining d. when 240lbs are remArdie Corporation uses 30,000 units. Each order placed is for 1,500 units. The stockout units is 300. Management is willing to accept a stockout probability of 40 percent. The stockout cost per unit is P3.20. What does the total stockout cost? choose the letter of the correct answera. P2,680.00b. P3,680.00c. P4,680.00d. P5,680.00e. P7,680.00
- An electronics shop sells 6000 headphones in a year and the sales is relatively constantthroughout the year. These headphones are purchased for SR 20.00 each, and the leadtime is three days. The holding cost per headphone per year is 10% of the unit cost andthe ordering cost per order is SR 75. There are 300 working days per year. Calculate thefollowing:(i) What is the annual holding cost?(ii) In minimizing the cost, how many orders would be made each year?(iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)?(iv) What is the time between orders?(v) What is the ROP? Write the answer on the computerThe best quantity to order One of the formulas for inventorymanagement says that the average weekly cost of ordering, payingfor, and holding merchandise iswhere q is the quantity you order when things run low (shoes,TVs, brooms, or whatever the item might be); k is the cost ofplacing an order (the same, no matter how often you order); c isthe cost of one item (a constant); m is the number of items soldeach week (a constant); and h is the weekly holding cost per item(a constant that takes into account things such as space, utilities,insurance, and security). Find dA>dq and d2A>dq2.Please do not give solution in image formate thanku. A product’s demand over (l + 1) periods is normally distributed with a mean of 100 and standard deviation of 10. Lead time is 2 periods. The order-up-to model is used to manage inventory. If in-stock probability stays at 99%, what will happen to expected on-hand inventory when expected demand increases to 200? A) It will increase. B) It will stay the same. C) It will decrease. D) It may either increase or decrease.
- A company has a demand for 25,750 units annually. The holding cost is 33% of the item cost which is $10.00. The ordering or set-up cost is $250.00 per order and the lead time is 5 days. Assume that there are 350 days per year Suppose a price break of $50 per order is offered for purchase quantities of 2,000 or greater. Question: What is the reorder point for this inventory strategy? What is the inventory position immediately after an order is placed for the inventory strategy that you have selected?For a company operating 300 days a year, the annual demand is 63,000 units, the lead time is 4 days, the ordering cost per order is BD 80 and the inventory turnover is 12, the reorder point is A. Every 12 days B. Every 4 days C. When 175 units remain D. When 840 units remain. Custom Computers, Inc. assembles custom home computersystems. Th e heat sinks for the central processing units are boughtfor $12 each and are ordered in quantities of 1300 units. Annualdemand is 5200 heat sinks, the annual inventory holding cost is$3 per unit, and the cost to place an order is estimated to be $50.Assume that demand occurs continuously through the year andthat a new order is placed in time so the order arrives at the sametime as the previous inventory runs out.(a) Construct a base-case spreadsheet model to help analyzediff erent order quantities. Th e primary output of interestis the total annual inventory-related cost, comprisingtotal ordering cost and total holding cost. Holding costcan be applied to the average inventory level through theyear. Given the assumption about continuously occurringdemand and that orders arrive just in time, the averageinventory level will be half of the order quantity.(b) For the base-case order quantity of 1300 heat sinks, whatis the…
- Suppose that the EOQ is 100, average annual demand is1,000 units, and the lead time demand is a random variablehaving the distribution shown in Table 15.a What value of SLM1 corresponds to a reorder pointof 25?b If we wanted to attain a 95% value of SLM1, whatreorder point should we choose?c If we wanted an average of at most two stockouts peryear, what reorder point should we choose? Lead TimeDemand Probability10 16 15 14 20 14 25 112 30 14Change the ordering simulation so that emergency ordersare never made. Instead, assume that all excess demandis backlogged, so the emergency cost should be replacedby a unit penalty cost for shortages. You can use thevalue $10. Now the inventory position is the amounton hand, plus the amount on order, minus the backlog.Simulate the same (s, S) policies as in the exampleA company has an annual demand of 16,000 products. The products cost $2 each. Ordering and transport costs amount to $200 per order. The annual cost of holding one product in stock is estimated to be $1.20 . Assume that the company adopts the EOQ as its order quantity and it has to have half of the EOQ as inventory on hand when an order is placed. How many weeks does it take for an order to be delivered to the company? (1 year = 52 weeks) A) PPE may be credited by 2 million dollarsB) Revaluation OCI may be credited by 3,3 million dollarsC) Accumulated depreciation may be debited by 4 million dollarsD) Accumulated depreciation may be credited by 1,3 million dollarsE) Other (Please Specify)