Rocky Mountain Tire Center sells 13,000 go-cart tires per year. The ordering cost for each order is $35, and the holding cost is 40% of the purchase price of the tires per year. The purchase price is $25 per tire if fewer than 200 tires are ordered, $19 per tire if 200 or more-but fewer than 8,000-tires are ordered, and $15 per tire if 8,000 or more tires are ordered. a) How many tires should Rocky Mountain order each time it places an order? Rocky Mountain's optimal order quantity is units (enter your response as a whole number)
Q: A minimum cost flow problem will have feasible solutions as long as there is a balance between the…
A: To determine the most affordable way to send a specific amount of flow through a flow network, one…
Q: Terex Corporation is a global manufacturer of aerial work platforms and materials processing…
A:
Q: Determination of the reorder point?
A: Reorder points are essential for any company that wishes to manage its inventory effectively. Making…
Q: Inquiries of warehouse personnel concerning possibly obsolete or slowmoving inventory items provide…
A: Answer (A) is incorrect because inquiries of warehouse personnel concerning possible obsolete or…
Q: 2x + 3y + 3z = 2 4x – 3y – 6z = 2 10x – 6y + 3z = 0 1. Given values – 144, -192, and 96 for Dx,…
A: Ans) Given Data: Dx = -144 Dy = -192 Dz = 96 D = 144 = Determinant
Q: sures for a chemist and for a building products manufacturer. Provide explanations and give three…
A: The number of goods your staff can make in a given amount of time, such as an hour, day, or week, is…
Q: 1. (EOQ)The Wallace Stationary Company purchases paper from the Seaboard Paper Company. Wallace…
A: Annual demand = 1,415,000 Ordering cost(S) = 2200 Holding cost(H) = 0.08
Q: The owner and manager of a hardware store reevaluates his inventory policy for hammers. sells an…
A: Given data: Monthly Demand (d) = 50 hammers in a month Then, Annual Demand (D) = 50 × 12= 600…
Q: ou have now decided to only engage with one key supplier to provide you with the best quality…
A: Suppliers management is the process of maximizing the value of money that is paid to the suppliers…
Q: why do we need to determine the demographic profile of the customers of a resort business when…
A: "Since you have asked multiple questions, we will answer the first question for you. If you want any…
Q: Using trend projection, develop a formula to predict sales for years 11 and 12. You have to show all…
A: Slope b=(n∑xy-∑x∑ y)/(n∑ x^2- (∑ x)^2) Intercept a=(∑ y-b∑ x)/n Equation y = a+bx Where y= TV sales…
Q: Wal Mart, although they are not a manufacturing company, uses sophisticated computer software to…
A: Inventory Control: In every business inventory management is very essential and…
Q: Terex Corporation is a global manufacturer of aerial work platforms and materials processing…
A: Inventory is a necessary evil. Keeping too much and too less of it leads to financial consequences.…
Q: 2.1. Actual project costs are determined by keeping track of the amount of actual cost expended and…
A: Here, the project manager would need to work on tracking the project's actual costs, and they would…
Q: Kalyan Singhal Corp. makes three products, and it has three machines available as resources as given…
A: Objective Functions and Constraints: Based on the given details, the objective…
Q: Topic: Problems and Concerns in Retail Business Operations These are the concerns of business…
A: Retail business operations are the activities that are directly occurring between the seller and the…
Q: Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in…
A: Find the Calculations below: Total cost = (Fixed cost + (Number of units * Variable Cost)) Cost…
Q: What is the utilization? What is the expected number of customers in the system (L)? What is the…
A: Queuing theory is the study of waiting for lines/queues. This model helps to determine the length…
Q: Describe three situations in which a purchaser might select a supplier that is having financial…
A: When a particular item is urgently needed by the organization, but one of your PSL (preferred…
Q: What is the difference between value-added lead time and non-value added lead time in lean…
A: Lean manufacturing is a business strategy that focuses on maximizing customer value and minimizing…
Q: Consider the following linear programming problem: Maximize 12X + 10Y Subject to: 4X + 3Y = 480 2X +…
A: Linear Programming is a mathematical and statistical tool that is used in operations management to…
Q: DM Office Products (DMOP) is a wholesale supplier of office products with one facility in…
A: Centroid method helps the businessman to find out the best location for manufacturing and…
Q: Calculate the Mean Absolute Percentage Error for the following data: Actual 91 86 87 97 Forecast…
A: Mean absolute percentage error is the difference between the actual and forecast and divided by…
Q: Develop a simple application of two- variable linear programming problem to find an optimal product…
A:
Q: Amelio Rodriguez Computing wants to establish an assembly line for producing a new product, the…
A: Given data: Task Time(sec) Immediate predecessor A 12 - B 14 A C 8 A D 5 B, C E 20 D
Q: Identify and explain the two (2) broad categories of risk
A: Systematic as well as unsystematic risk are indeed the two broad forms. A risk affecting the entire…
Q: It takes an operator 1.60 minute to service a machine and 0.4 minute to walk to the next machine.…
A: Operator Time = 1.60 minutes Walking time = 0.4 minutes Machine run time = 6 minutes Operator earns…
Q: 12units (round your response to the nearest whole number) a) What is the optimal size of the…
A: EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…
Q: Describe two ways in which Walmart benefits from good sourcing decisions.
A: Strategic sourcing is the evaluation of the total cost with relation to the market trends and that…
Q: The relative size of errors is shown by: Residuals O MSE O Bias O MAD O MAPE
A: Forecasting errors are common in a variety of industries. They are usually caused by human mistakes,…
Q: Tyler Apiaries sells bees and beekeeping supplies. Bees (including a queen) are shipped in special…
A: Target weight of the package = 12 Kgs Historically, Tyler's shipments have weighted on an average=…
Q: Calculating the expected time and variance for all of these activities. -Drawing the full network…
A: A critical path can be described as a series of tasks that need to be completed in order for a…
Q: The university is scheduling cleaning crews for its ten buildings. Each crew has a different cost…
A: Given data is Objective function: Min Z=270x1+290x2+250x3+270x4+230x5+180x6+180x7+280x8 Subject to…
Q: Your company assembles five different models of a motor scooter that is sold in specialty stores in…
A: Find the Calculation methods below: Total Cost = Annual Purchase cost + Tooling cost + Carrying cost…
Q: 2. (Quantity Discount) County Hospital orders syringes from a hospital supply firm. The hospital…
A: Find the Calculation methods below: Economic Order Quantity = 2DSHTotal Cost = D*h + (DQ*S) +…
Q: Discuss the following topic for the Google Inc. How pay benefits to motivate employee to perform…
A: Google is an American-based multinational company that has helped millions of people to ease the…
Q: 14. The following is a table of activities associated with a project at Rafay Ishfaq's software…
A: Network diagram of given data:
Q: Minimization Case. Min C = X1 + X2 + X3 Subject to X1 – 3X2 + 4X3 = 5 X1 – 2X2 =0 And X1, X2, X3 >=…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: (2) Following is a table listing the project activities, sequencing requirements and other relevant…
A: The critical Path Method is a concept of operations management that is used to determine which tasks…
Q: The Sea Wharf Restaurant would like to determine the best way to allocate a monthly advertising…
A: Decision Variables: Suppose-N be the amount to be allocated for newspaper advertisingR be the amount…
Q: a) The cycle time for the production of a PDA= 20 seconds (round your response to two decimal…
A: Project schedule helps in calculating different values all related to the production cycle like the…
Q: Role of cGMP in the Quality Control unit in the pharmaceutical industry please define this…
A: Quality if the utmost priority in pharmaceutical products as they are directly related to health. To…
Q: 2. A company has a markup rate of 38 % of the selling price. The product of the company sells for…
A: Markup is the difference that refers to the selling price and the cost of manufacturing it. In the…
Q: We have demand for a product with 1500 units/month. The vendor offers quantity discounted method for…
A: Annual demand (D) = 1500×12=18000 Units Order cost (S) = $10 + $3 = $13 per order Warehouse rent fee…
Q: On Monday evenings in April 2015, each episode of WWE Entertainment was typically watched by 3.8…
A: Decision variable: Suppose-X be the no. of WWE spotsY be the no. of American dad spots
Q: The table below shows the sales figures for a brand of shoe over the last 12 months. Months Sales…
A: Given that, Alpha = 0.6 Alpha 0.6 Month Sales January 69 February 75 March 86 April 92…
Q: Instructions There are four parts to this problem. Use Excel to perform the following. a. Use the…
A: using the same formula for EOQ as instructed. a.
Q: Just-in-time manufacturing has become more popular because companies can cut costs associated with…
A: Potential Risks of Just-in-Time Inventory Lack of Preparedness: A lean framework must be…
Q: Develop a decision tree for this problem and determine the optimal decision strategy.
A: A decision tree is the analysis of the options that are to be considered or chosen to take the…
Q: Patel and Associates, Inc., is an accounting firm that has three new clients. Project leaders will…
A: (a)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Rocky Mountain Tire Centre sells 20,000 tires of a particular type per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20. per tire if fewer than 500 tires are ordered, $18. Per tire if more than 500 but fewer than 1,000 tires are ordered and $17. per tire if 1,000 or more tires are ordered. Quantity Unit Price 1-499 $20. 500-999 $18. 1000 & over $17 Based on available information, lead time demand for CD-ROM drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level. What value of Z should be applied? How many drives should be carried as safety stock?Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year.The purchase price is $20 per tire if fewer than 500 tires are ordered, $18 per tire if 500 or more-but fewer than 1,000- tires a re ordered, and $17 per tire if I ,000 or more tires areordered.a) How many tires should Rocky Mountain order each time it places an order?b) What is the total cost of this policy?Pingu Company manufactures winter jackets. Setup costs are $2.00. Penguin manufactures 4,000 jackets evenly throughout the year. Using the economic order quantity approach, the optimal production run would be 200 when the cost of carrying one jacket in inventory for one year is 0.40. The given solution is this: 200 = 2*setup cost* Annual Demand / Carrying cost200 = 2*2*4000/ Carrying cost40000 = 16000 / Carrying costCarrying cost = 16000 / 40000Carrying Cost = 0.4 Hence, the cost of carrying one jacket in inventory for one year is 0.4 QUESTION: How did you get the 40,000 (that was divided to 16,000)?
- A firm uses the order-up-to model to manage its inventory. It wants to increase its in-stockprobability while decreasing its holding costs (i.e., reducing its average inventory). Which ofthe following actions will help to achieve this goal? (Consider each action independently.)I. Decrease the lead time.II. Increase the order-up-to level.III. Increase the average quantity on order.a. Only Ib. Only IIc. Only IIId. I and IIe. I and IIIf. II and IIIg. Any of them will help (that is I, II, or III).h. None of them will help.An optometrist orders eyeglass frames at a cost of $40per frame and sells each frame for $70. Annual holding costis 20% of the optometrist’s cost of purchasing a frame. Eachtime frames are ordered, a cost of $200 is incurred. Becauseof lost goodwill, a cost of $50 is incurred each time acustomer wants a frame that is not in stock. Frames aredelivered one week after an order is placed. Annual demandfor frames is N(1,040, 15.73).a Assuming all shortages are backlogged, determinethe order quantity and reorder point. b Assuming all shortages result in lost sales, deter-mine the order quantity and reorder point. c To meet 95% of all orders from stock, what shouldbe the reorder point?d To have shortages occur during an average of twolead times per year, what should be the reorder point?A firm incurs $30 in fixed order costs per order and a holding cost per unit of $1per year. Annual demand is 10,000 units. The firm is required to order an integer multiple of500 units. What order quantity should the firm use to minimize ordering and holding costs?
- 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 remA 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?
- 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.)c. What ordering policy is recommended by the least unit cost heuristic?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.)b. What ordering policy is recommended by the part period balancing heuristic?A hospital orders its thermometers from a hospitalsupply firm. The cost per thermometer depends on the ordersize q, as shown in Table 6. The annual holding cost is 25%of the purchasing cost. Let EOQ80 be the EOQ if the costper thermometer is 80¢, and let EOQ79 be the EOQ if thecost per thermometer is 79¢.a Explain why EOQ79 will be larger than EOQ80. b Explain why the optimal order quantity must be ei-ther EOQ79, EOQ80, or 100. c If EOQ80 100, show that the optimal order quan-tity must be EOQ79. d If EOQ80 100 and EOQ79 100, show that theoptimal order quantity must be either EOQ80 or 100.e If EOQ80 100 and EOQ79 100, show that the optimal order quantity must be EOQ79.