Run and Shine, a manufacturer, purchases 2750 units of a certain component for his annual usage. The order placing cost is RO 175 and cost of carrying one unit for a year is RO 6. Calculate the economic order quantity.
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Run and Shine, a manufacturer, purchases 2750 units of a certain component for his annual usage. The order
placing cost is RO 175 and cost of carrying one unit for a year is RO 6. Calculate the economic order quantity.
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- The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 350 baseballs per week. The team orders baseballs from Coopers-Town, Inc., a ball manufacturer noted for six-sigma-level consistency and high product quality. The cost to order baseballs is $100 per order and the annual holding cost per ball is 38 percent of the purchase price. Coopers-Town’s price structure is: Order Quantity Price per Unit 1–999 $7.50 1,000–4999 $7.25 5,000 or more $6.50 a. How many baseballs should the team buy per order? b. What is the total annual cost associated with the best order quantity? c. Coopers-Town, Inc., discovers that, owing to special manufacturing processes required for the Buck’s baseballs, it has underestimated the setup time required on a capacity-constrained piece of machinery. Coopers-Town adds another category to the price structure to provide an incentive for larger orders and thereby hopes to…The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 350 baseballs per week. The team orders baseballs from Coopers-Town, Inc., a ball manufacturer noted for six-sigma–level consistency and high product quality. The cost to order baseballs is $100 per order and the annual holding cost per ball is 38 percent of the purchase price. Coopers-Town’s price structure is: Order Quantity Price per Unit 1–999 ........ $7.50 1,000–4999 ...... $7.25 5,000 or more ..... $6.50 a. How many baseballs should the team buy per order? b. What is the total annual cost associated with the best order quantity? c. Coopers-Town, Inc., discovers that, owing to special manufacturing processes required for the Buck’s base-balls, it has underestimated the setup time required on a capacity-constrained piece of machinery. Coopers-Town adds another category to the price structure to provide an incentive for larger orders and thereby hopes to reduce…Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is $30. The cost of holding one unit of inventory for one year is $15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Compute the economic order quantity. Economic order quantity = 1600 Compute the ordering, carrying, and total costs for the EOQ. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
- Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,400 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $4 per unit of average inventory. Every time an order is placed for more item X, it costs $18. Calculate the order quantity and the annual ordering cost for item X.A product has an average daily demand of 400 units with standard deviation of 100 units. Lead-time is 1 day. If management would like to satisfy all demand in 80% of the cycles, what is the reorder point? 408 500 620 555 484Pizza Hut purchases its pizza delivery boxes from a printing supplier. Pizza Hut delivers on average 400 pizzas each month (assume deterministic demand). Boxes cost 39 cents each, and each order costs $16.80 to process. Because of limited storage space, the manager wants to charge inventory holding at 20 percent of the cost. The lead time is 5 days. Use the EOQ Model Excel template to determine the economic order quantity.
- A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: Less than 1000 $5.00 each 1000 to 3999 $4.95 each 4000 to 5999 $4.90 each 6000 or more $4.85 each Ordering costs are $50, annual carrying costs per unit are 40 percent of purchase cost, and annual usage is 4900 pulleys. Determine the order quantity that will minimize total cost.The maintenance department of a large hospital uses about 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 S16 per case. Determine the optimal order quantity and the total cost Show your result on diagram with order quantity on X axis and cost on Y axis.The economic order quantity of Geo Co. is determined to be 450 units and it sells its only product for P5 each. Every time the company orders, it incurs P50. Holding cost is P10. It takes 3 days to make and receive an order. How much sales should Geo Co. for this economic order quantity to be plausible? (Using 360 day per year)
- Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? A. P8,160 B. P5,280 C. P5,760 D. P2,400Abey Kuruvilla, of Parkside Plumbing, uses 1,250 of a certain spare part that costs $26 for each order, with an annual holding cost of $27. a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). b) What is the economic order quantity? units (round your response to two decimal places).Ross White’s machine shop uses 2500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost) and the ordering cost per order is $18.75. There are 300 working days per year. Develop a total cost model for this system. What is the EOQ for this problem? What is the cycle time? What is the reorder policy? What are the annual holding and ordering costs associated with your recommended EOQ? What is the total annual cost associated with your recommended EOQ?