please solve all questions Question 2At All Books, a large retailer of popular books, demand is constant at 20,400 books per year. The costof placing an order to replenish stock is $35, and the annual cost of holding is $6 per book. Stock isreceived 5 working days after an order has been placed. No backordering is allowed. Assume 250working days a year.a. What is Dot Com's optimal order quantity?b. What is the optimal number of orders per year?c. What is the optimal interval (in working days) between orders?d. What is demand during the lead time?e. What is the reorder point?f. What is the inventory position immediately after an order has been placed?

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Answered: At All Books, a large retailer of…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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question 5 At Dot Com, a large retailer of popular books, demand is constant at 20,400 books per year. The cost of placing an order to replenish stock is $75, and the annual cost of holding is $6.00 per book. Stock is received 12 working days after an order has been placed. No backordering is allowed. Assume 325 working days a year. a. Dot Com's optimal order quantity is______ books. (Enter your response rounded to the nearest whole number.) b. The optimal number of orders per year is_____ orders. (Enter your response rounded to the nearest whole number.) c. The optimal interval (in working days) between orders is____ days. (Enter your response rounded to one decimal place.) d. The demand during lead time is ______ books. (Enter your response rounded to the nearest whole number.) e. The reorder point is _____ books. (Enter your response rounded to the nearest whole number.) f. The inventory position immediately after an order has been placed is _______ books.…
Question 5: Inventory Management 2) A company plans to have their order strategy evaluated. The current demand is normal distributed with ~N(6267, 385) every four weeks, the cost for each order is of AUD 15 per order, the annual holding cost factor is 10% and the price per unit is AUD 21. Assume that the year has 52 weeks. a. Currently, they order 110 items with each order. Argue if this order quantity is a good choice or if it should be changed? b. Assume a lead time of 1 week and Service Level of 95%. What would you recommend as a safety stock? c. If you change the lead time to 6 days, does the safety stock increase or decrease? Explain your answer.
Question 2Orange Inn Restaurant uses 35,000 units of flour mix per year which has a price of $20 per unit.The annual costs of storage are $0.70 per unit. The cost to place an order is $1,000. A. Calculate the:i. economic order quantity (EOQ) ii. number of orders iii. average stock iv. annual ordering cost v. annual carrying cost vi. total annual inventory cost vii. total annual cost of items and inventory
Question 4An 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?
Question 30 Firm B's demand for a product is 10 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with a 10% discount for orders of 25 units or higher. Firm B incurs a 30% annual holding cost. How much does Firm B save each year (including purchasing, ordering, and holding costs) if it purchases enough units to get the discount? Group of answer choices $2.25 $6.00 $120.00 $122.25
Question 15 Discontinuity created by new technology a.shows the amount of effort required to measure new technology B.shows the gap between the old technology and new technology C.shows the amount of capital required to implement new technology D.shows the amount of effort required to use old technology QUESITON 16 Quantity discount model is an inventory management model where A.The cost per unit decreases as production quantities increase B.Used to determine the optimal order quantity C.The price per unit decreases as order quantities decrease D.Used to determine the economic order quantity Question 17 In strategy formulation, which of the following processes answers the question "How will the firm compete"? A.Deploying the strategy B. Defining the primary tasks C.Positioning the frm D.Determining the order winners and order qualifers
Question 5 Safety Stock Model Consider the following information on an inventory management system (one year is 50 weeks, one year is 365 days and 1 week is 7 days): Item Cost:$10 Order Cost:$250 Annual Holding Cost:33% of item cost Average Demand:515 per week Std. Dev. of Demand:125 per week Lead time:14 days a) Ignoring the uncertainty in the demand (i.e. looking only at average values), find the optimal order quantity and the reorder point. b) Consider now the uncertainty. The order quantity remains the same. If the target is to have a 98% annual service level, what should be the ROP? What is the safety stock? c) If the ROP is 1178 units (note that z value has been changed), what is the corresponding annual service level that the firm can provide?
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QUESTION 10 Economic Order Quantity (EOQ), is the order quantity that ... over the planning horizon. minimizes total ordering costs minimizes total carrying costs minimizes total inventory costs is required as safety stock
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QUESTION 1 The sales of Vintage company is 80,000 units per year. The percentage of storage is 20 percent of inventory value. The purchase price is RM20 per unit and the ordering cost of each order is RM1,000. Lead time is 2 weeks. Assume that there are 52 weeks in your calculation. Pleaase Provide Calculation Step Calculate: a) EOQ b) Total Carrying Cost c) Total Ordering Cost d) Total Inventory Cost e) Reorder point f) How many placements of order per year?

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