c. If production rate is 4000 supercapacitors per year, determine: i. the optimal size of a production run, ii. the length of each production run, iii. the average annual holding cost, iv. the average annual setup cost and v. the maximum level of the on-hand inventory.
Q: I need a detailed assistance to solve this problem in: Operations Analysis. 3) A chemical…
A: Step1: Calculating the value of optimal production lot for the compound. We have,Model Name:…
Q: Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7,100…
A: From the above given information, Amount of the items according to their percentages are, A items…
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: 2. An electronic component manufacturer produces supercapacitors. They are sold at a steady rate of…
A: The question is related to the Inventory Management. The Optimum order quantity will be calculated…
Q: HAL Ltd. produces a line of high-capacity disk drives for computers. The housings for the drives are…
A: Given: Production rate R = 150 housings/month Cost of each housing = $85 Set up cost for beginning…
Q: In a fixed order inventory system, the solution of the EOQ model presents the optimal decision that…
A: The economic order quantity is a measure that is utilized to estimate the optimal quantity which can…
Q: Models of inventory systems frequently consider the relationships among a beginning inventory, a…
A: a) The mathematical relationship that would indicate ending inventory as function of beginning…
Q: I Carry rents trucks for moving and hauling. Each truck costs the company anaverage of $8,000, and…
A: Hence, the company requires 160 trucks for 8 months.
Q: In the fixed-time period model, the order quantity is determined for which:
A: The key difference between a fixed-order quantity inventory model, where demand is known and one…
Q: A company manufactures two products A and B. Each A requires two C's and one D. Each D requires two…
A: A Small Introduction about Inventory Management Stock administration alludes to the most common…
Q: The economic order quantity of Geo Co. is determined to be 450 units and it sells its only product…
A: A Small Introduction about Purchasing Buying is the purchasing of labor and products. A thing that…
Q: The expected annual usage of a particular material is 540,000 units, and the standard order size is…
A: standard order size = 36000 Annual Demand = 540000 Cost per order = 240
Q: 0 Lila Battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who…
A:
Q: Consider that you work at Kroger Grocery store, and that you've been tasked with creating an ABC…
A: Give data- Item Profit per case Weekly Sales Ribeye Steak 135 3 Lobster Tail 245 3 Pasta 23…
Q: The materials manager of a tire manfacturer must predict periodically place order for a key chemical…
A: The reorder purpose (ROP) is that the level of inventory that triggers associate action to refill…
Q: The president of Value Filters became very enthusiastic about using EOQs to plan the sizes of her…
A: EOQ=2 ×S× Cpi×CuS, Annual demand=1800Price per unit =$2.4i=holding cost=0.3setup cost=$100q1=2…
Q: Cynthia Knott’s oyster bar buys fresh Louisiana oysters for $5 per pound andsells them for $9 per…
A: Newsvendor model should be used to solve the given problem, Cost of under-ordering Cost of…
Q: 4) The H.A.L. Computer Store sells a printer for $200. Demand for this is constant during the year,…
A: We will first calculate the current cost incurred and then compare it with the EOQ.
Q: The Rahway, New Jersey, plant of Metalcase, a manufacturer of office furniture, produces metaldesks…
A: Given data Order quantity = $100 The company produces goods at the rate of 200 per month. Thus, the…
Q: If a firm allows a safety stock of 55 days, and annual sales in are 65,000 units, price per unit is…
A: Given details- Safety stock = 55 days Annual sales = 65,000 units Per unit price = $25 Carrying cost…
Q: 27- In the economic order quantity model, the optimal quantity (EOQ) is always…
A: The Economic Order Quantity (EOQ) refers to the ideal order quantity that a company should purchase…
Q: An online footwear firm Shoe-n-co has four regional warehouses. Demand at each warehouse is normally…
A: Given, Weekly demand, = 10000 Standard deviation, STD = 2000 Ordering cost, o = $1000 Holding cost…
Q: The soft goods department of a large department store sells 175 units per month of a certain large…
A: Annual Demand (D)= 175*12=2100 units Unit cost(C)=$2.50 Cost of placing order=$12.00 Carry cost=27%
Q: 3. Cynthia Knott’s oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for…
A: Note: - For a multiple subparts question we can answer only up to three subparts. So we will answer…
Q: Determinetheordering, holding, andtotal inventory costs forthe currentorderquantity. Determine the…
A: EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…
Q: Ray wishes to determine the optimal order quantity for its best-selling bike in his bike store. Ray…
A: Daily demand, AVG = 23 units Unit price, u= $107 Number of working days, w= 269 Carrying cost, h =…
Q: In the fixed-time period model, the order quantity is determined for which: * The total annual…
A: The fixed time period model can be defined as the model which helps companies in generating orders…
Q: Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6,600…
A: Under the ABC analysis, inventory can be divided into three categories: A category: items with the…
Q: 6-40
A: Compute Safety stock:
Q: (a) Assume that all ingredients are ordered independently. For each ingredient, determine the…
A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…
Q: Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6,500…
A: ABC analysis is a strategy for inventory management that assesses the value of inventory items based…
Q: Berry Computer is considering moving some of its operations overseas in order to reduce labor costs.…
A: Given data, Main circuit board costs = $75 per unit Overseas costs = $ 65 to produce Holding = 20%…
Q: A company would like to classify its inventory systems using ABC inventory classification system.…
A: ABC analysis:It is an approach for analyzing inventory items based on the product's consumption…
Q: Suppose that your firm manufactures rubber chickens. Monthly demand for the chickens is 32,000…
A: Single warehouse caseMonthly demand = 32000 units (i.e. 32000 x 12 units annually)EOQ (Q) = square…
Q: Problem 4 In a known company, the demand for a product follows a normal distribution. Based on past…
A: 1) Demand DD = 13501350 = (30*45) Setup Cost SS = 4545 Holding Cost HH = 22 The economic…
Q: The figure on the right shows the inventory levels of cherries (in pounds) at one store and the…
A: given that, by observing figure cherries are in pounds at one store and the order -reorder periods…
Q: Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6,500…
A: Given, Total inventory = 6500 items A items composition = 8% B items composition = 38% C items…
Q: 17. Models of inventory systems frequently consider the relationships among a beginning in- ventory,…
A: Given that - Beginning Inventory for period j = sj-1 Production in period j = xj Demand in period j…
Q: In a fixed order inventory system, the solution of the EOQ model presents the optimal decision that…
A: The ordering costs are the costs incurred during the purchase of resources and materials from the…
Q: A local machine shop buys hex nuts and molly screws from the same supplier. The hex nuts cost 15…
A: Hex nuts cost Cu= 15 cents Molly screws cost Cu = 38 cents A setup cost,C0 = $100 for all orders.…
Q: A company annually uses 1,200 of a certain spare part that costs $25 for each order and has a $24…
A: The EOQ is the number of items that a company can order from a supplier without incurring inventory…
Q: Total Stock Administration costs under the EOQ model is the sum of: Select one: a. Carrying costs…
A: Administrative cost refers to the overhead cost that is incurred by the organization not directly…
Q: Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately…
A: Total Items = 6900 A items = 12% of the items in inventory B items = 34% of the items in inventory C…
Q: At Matthews Car Repair, customer demand for a certain brand of motor oil is normally distributed…
A: Given, Mean = 15 gallons Standard deviation = 6 work-days Probability of not running out = 95% z…
Q: 4. A manager receives a forecast for next year. Demand is projected to be 600 units for the first…
A: Given- The demand for the first half of the year (d1) = 600 units The demand for the second half…
Q: The Handy Manufacturing Company manufactures small air conditioner compressors. The estimated demand…
A: Annual demand(D) = 140,000 Setup cost(S) = 200 Carrying cost(C) = 10 Production rate(P) = 100 Daily…
Q: Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6,600…
A: Given - Total Inventory = 600 items Inventory with item A = 8% and counted in every = 19 days…
Step by step
Solved in 2 steps with 5 images
- 3) The Omnigroup stocks and sells Kipor generators. The firm gathered the following information from its Kathmandu office: Demand = D = 19,500 units per year Ordering cost = S = $25.60 per order Holding cost = H = $4.40 per unit per year The firm wants to calculate the: a) EOQ for the Kipor generators. b) Annual holding costs for the Kipor generators. c) Annual ordering costs for the Kipor generators. Hint: EOQ = square root of (2DS/H) Annual Holding Cost = (Q/2) H Annual Ordering Cost = (D/Q) S3. Cynthia Knott’s oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for $12 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $1 per pound. Cynthia believes that demand follows the normal distribution, with a mean of 100 pounds and a standard deviation of 15 pounds. a) What is the cost of underestimating demand for each pound? b) What is the overage cost per pound? c) How many pounds of oyster should she order each day? d) What is the stockout risk for this order size?Hammonds Corporation is trying to decide between two alternate order plans for itsinventory of a certain item. Irrespective of the plan to be followed, demand for the item isexpected to be 1,000 units annually. Under Plan A: order costs would be $ 40 per orderand inventory holding costs (carrying cost) would be $100 per unit per annum. Under PlanB order costs would be $30 per order, while holding costs would be 20% of unit cost whichis $480.Determine:i. the economic order quantity for EACH plan ii. total inventory cost for EACH plan iii. hence, indicate which plan would be better for the company
- We are given the following information for a product:Order cost $50Annual demand N(960, 3,072.49)Annual holding cost $6/item/yearShortage cost $80 per unitLead time one monthSales price $40 per unitProduct cost $30 per unita Determine the order quantity and the reorder pointunder the assumption that all demands are backordered. b Determine the order quantity and reorder point un-der the lost sales assumption.Quantity discounts. This type of problem can be recognized when a list showing prices for eachquantity range is given along with the basic EOQ information.a. If unit holding cost is constant, use these steps to solve the problem:1. Use Formula 13–2 to find Q.2. Locate Q in the price schedule.3. Compute TC using Formula 13–1 for Q and for all lower-cost price breaks.b. If unit holding cost is a percentage of unit price, use these steps to solve the problem:1. Beginning with the lowest cost, and using the corresponding H for that cost, compute Qusing Formula 13–2. Continue moving up in unit cost until a feasible Q is found.2. Locate the feasible Q in the price schedule.3. Compute TC using Formula 13–9 for Q and for all lower-cost price breaks. Remember to usethe corresponding H for each price.A small manufacturing firm uses roughly 3,400 pounds of chemical dye a year. Currently the firmpurchases 300 pounds per order and pays $3 per pound. The supplier has just announced that ordersof…The Rahway, New Jersey, plant of Metalcase, a manufacturer of office furniture, produces metaldesks at a rate of 200 per month. Each desk requires 40 Phillips head metal screws purchasedfrom a supplier in North Carolina. The screws cost 3 cents each. Fixed delivery charges and costsof receiving and storing shipments of the screws amount to about $100 per shipment, independently of the size of the shipment. The firm uses a 25 percent interest rate to determineholding costs. Metalcase would like to establish a standing order with the supplier and is considering several alternatives. What standing order size should they use?
- A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)d. Which method resulted in the lowest-cost policy for this problem?A component used in a manufacturing facility is ordered from an outside supplier.Because the component is used in a variety of end products, the demand is high. Estimated demand (in thousands) over the next 10 weeks isWeek 1 2 3 4 5 6 7 8 9 10Demand 22 34 32 12 8 44 54 16 76 30The components cost 65 cents each and the interest rate used to compute the holding cost is 0.5 percent per week. The fixed order cost is estimated to be $200. (Hint:Express h as the holding cost per thousand units.)a. What ordering policy is recommended by the Silver–Meal heuristic?HAL Ltd. produces a line of high-capacity disk drivers for mainframe computers. It canproduce the disk drive housings at the rate of 150 housings per month. The housing cost85$ each to produce and the setup cost for beginning of a production run is 700$. Assumethe annual interest rate of 28% for determining the holding cost and the demand is 720units per year.a) What is the optimal number of housing for HAL Ltd. to produce in each productionrun?b) Find the time between initiation of production runs, the time devoted to productionand the downtime each production cycle.c) Calculate the maximum level of inventory in the warehouse in this case.
- In the calculation of an optimal policy for an all-units discount schedule, you firstcompute the EOQ values for each of the three order costs, and you obtain: Q(0) =800, Q(1) =875, and Q(2) =925. The all-units discount schedule has breakpointsat 750 and 900. Based on this information only, can you determine what the optimal order quantity is? Explain your answer.The catering manager of La Vista Hotel, LisaFerguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500 people, they did not have enoughknives. She decides she needs to order some more silverware,but wants to take advantage of any quantity discounts hervendor will offer.For a small order (2,000 or fewer pieces), her vendorquotes a price of $1.80Ypiece.If she orders 2,001–5,000 pieces, the price drops to$1.60Ypiece. 5,001–10,000 pieces brings the price to$1.40Ypiece, and 10,001 and above reduces the price to $1.25.Lisa’s order costs are $200 per order, her annual holdingcosts are 5%, and the annual demand is 45,000 pieces. For thebest option:a) What is the optimal order quantity?b) What is the annual holding cost?c) What is the annual ordering (setup) cost?d) What are the annual costs of the silverware itself with anoptimal order quantity?e) What is the total annual cost, including ordering,…ABC ltd uses 6250 kg of raw material per year. It costs RM10 to hold 1 kg for One year, and the costs of ordering each consignment of raw materials are RM200. Calculate the following: a) The reorder quantity/ EOQ/ ROQ b) Ordering Cost c) Holding Cost d) Total cost of stock