Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,900 units per year. The cost of each unit is $103, and the inventory carrying cost is $8 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 118 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ? units (round your response to two decimal places).
Q: The concession stand at the Blacksburg High School stadium sells slices of pizza during soccergames.…
A: We have, average demand, d= 6 pizzas / hour delivery lead time, L = 30 mins = 0.5 hours standard…
Q: Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain…
A: Given- Annual Demand (D) = 6,100 units Ordering Cost (S) = $31 per order Holding or carrying cost…
Q: Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain…
A: Annual Demand (D) = 5750 Carrying Cost (H) = 8 Ordering Cost (S) = 31
Q: A local service station is open 7 days per week, 365 days per year. Sales of 10W40 grade premium oil…
A: Given Information: Daily Demand = 20 cans Inventory holding cost = $ 0.50 per can per year Ordering…
Q: A pharmacist wants to establish an optimal inventory policy for a new antibiotic that requires…
A: Ordering cost is the cost that remains the same during the year and incurs at the time of placing an…
Q: Saga ltd. produces electronic toys for children between the ages of 7-10 years old. The toys use a…
A: Formula:
Q: ABC has annual demand of 120000 units with average cost of 500 per unit. The ordering cost is 4000…
A: EOQ=2DSH =2×120000×4000100 =960000000100 =9600000 =3098.38Annual…
Q: Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual…
A: Annual demand, d =5000 units Carrying cost, h =$50 per unit per year Ordering cost, o =$30 per order…
Q: Lead time for one of your fastest-moving products is deterministic and equal to 21 days. Demand…
A: Given data is Lead time (L) = 21 days Avg demand (d) = 100 units per day 70% z value = 1.036
Q: Sam’s Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory…
A: a.
Q: Thomas Kratzer is the purchasing manager for theheadquarters of a large insurance company chain with…
A: Find the Calcualtions methods below: EOQ = 2DSH Average Inventory = EOQ2 Number of orders per year…
Q: ompany XYZ makes bicycles. XYZ produces 400 bicycles a month. They must buy tires from a supplier at…
A: Annual Demand(D)=400*12*2=9600 tires cost of tire(C)=$20 per tire. The inventory holding cost(I)…
Q: Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an…
A: Given data, D Demand 400 H Holding Cost - For part A 5 H Holding Cost - For part B 6 S…
Q: Lulu hypermarket estimates daily demand of 16.25 kgs for a product. It costs RO 100 to make and…
A: THe correct answer is
Q: 1. What inventory management model should we use to solve this problem? Model for discount purchases…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Enrun Corporation expects to order 140,000 memory chips for inventory during the coming year, and it…
A: Economic order quantity: Economic order quantity (EOQ) is the most cost-effective system of ordering…
Q: How long is the order cycle time? Now assume the manager does not use the EOQ model. Instead, the…
A: Order cycle refers to the processing of a particular route on the cycle through which the cycle gets…
Q: The National Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the…
A: EOQ is economic order quantity. It is a company's optimal order quantity linked to ordering,…
Q: confectioner buys plastic boxes in bulk and uses them to pack chocolates. The annual requirement of…
A:
Q: The XYZ Company has an annual sale of 20,000 television sets. each inventory item has a value of…
A: Introduction: The term Business refers to an exchange of goods and services between the buyer and…
Q: Most inventory models attempt to minimize
A: Answer: Option : d) The total inventory-based costs
Q: ABC shop uses glue at a daily rate that is normally distributed with a mean of 250 ounces and a…
A: ABC shop uses glue at a daily rate that is normally distributed with a mean of 250 ounces and a…
Q: Saga ltd. produces electronic toys for children between the ages of 7-10 years old. The toys use a…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Sunstar Ice Cream Sells 12,000 gallons of ice cream each month from its central storage facility.…
A: Given, Demand of ice cream, d = 12000 gallons Carrying cost, h = P 0.10 per gallon Ordering cost, o…
Q: A local gas station is open 7 days per week, 365 days per year. Sales of 10W40 grade premium oil…
A:
Q: EOQ
A: D = Annual demand O = Ordering cost A = Annual carrying cost Economic order quantity (EOQ) =…
Q: Customers at Joe’s Office Supply Store demand an -average of 6000 desks per year. Each time an order…
A: Annual Demand = D = 6,000 desks per year Ordering Cost = O = $300 Holding Cost = H = 25% of $200 =…
Q: What is the average inventory level if JTP uses an order quantity of 1,371 tires?
A: Demand is the total quantity of commodities for which the consumers are willing to purchase at…
Q: Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile…
A: Annual demand (D) = 10,821 units It is given that JTP uses an order quantity of 1,728 tires.…
Q: Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an…
A: EOQ - Economic order quantity 2DSH = 2 x 405 x 465⇒37,2605 = 18630 = 136.49 EOQ - 136.49 units
Q: Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per…
A: Given Information- Monthly demand = 400 units D = annual demand = 12 x 400 = 4,800 units P = Unit…
Q: Chao Han is the head of the procurement and inventory management unit at a successful tea producer…
A: The question is related to Inventory Management. We have to calculate Economic Order Quantity . EOQ…
Q: The Pacific Lumber Company and Mill processes 10,000 logs annually, operating 250 days peryear.…
A: Given Log processed annually D = 10000 Ordering cost Co = $1600 per order Holding cost Ch = $15 per…
Q: The expected annual usage of a particular material is 540,000 units, and the standard order size is…
A: Given that - D = 540,000 units EOQ = 36,000 units Co = P240
Q: The NATO Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the…
A:
Q: Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Chao Han is the head of the procurement and inventory management unit at a successful tea producer…
A: Here, backorder can be understood as the amount ordered when a level of inventory is reached. Here,…
Q: A toy manufacturer uses 48,000 rubber wheels per year for its dump truck. The trucks are assembled…
A:
Q: Petromax Enterprises uses a continuous review policy to manage the inventory for one of its SKUs.…
A: Economic order quantity or EOQ is the optimum size of the order is placed at which the ordering cost…
Q: In the basic EOQ model, if annual demand is 125, holding cost is $2.63 (per unit per year), and…
A: Given data is Annual demand = 125 Holding cost = $2.63 per unit per year Total inventory cost =…
Q: Thompson Paint Company uses 60,000 gallons of pigment per year. The cost of ordering pigment is $200…
A: Economic order quantity is the optimal quantity that the business needs to buy to meet customers’…
Q: Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub- parts…
Q: Your firm uses a periodic review system for all SKUS classified, using ABC analysis, as B or C…
A: Given information Demand (D) = 15080 units/year Ordering Cost (S) = $125.00/ order Holding Cost (H)…
Q: Leaky Pipe, a local retailer of plumbing supplies, faces de-mand for one of its SKUs at a constant…
A: Annual Demand = D = 30,000 units Ordering Cost = O = $10 per order Holding Cost = $1 per unit per…
Q: A certain type of computer costs RO 1000, and the annual holding cost is 20% of the value of the…
A: The economic order quantity, or EOQ, is a metric that is used to determine the optimal order…
Q: The purpose of computing for EOQ is to put into balance the Carrying Cost and Ordering Cost. Is it…
A: Ordering costs are the expenses that are incurred to create and process an order to a supplier.…
Q: The carrying cost curve and ordering cost curve of Inc.’s inventory intersect at 3,500 units. What…
A: Economic order quantity is the optimal order quantity that any company should purchase to reduce the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,000 units per year. The cost of each unit is $105, and the inventory carrying cost is $8 per unit per year. The average ordering cost is $31 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (This is a corporate operation, and there are 250 working days per year). a. What is the EOQ?b. What is the average inventory if the EOQ is used?c. What is the optimal number of orders per year?d. What is the optimal number of days in between any two orders?e. What is the annual cost of ordering and holding and holding inventory?f. What is the total annual inventory cost, including cost of the 6,000 units?Thomas Kratzer is the purchasing manager for theheadquarters of a large insurance company chain with a centralinventory operation. Thomas’s fastest-moving inventory item hasa demand of 6,000 units per year. The cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. The aver-age ordering cost is $30 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (This is acorporate operation, and there are 250 working days per year.)a) What is the EOQ?b) What is the average inventory if the EOQ is used?c) What is the optimal number of orders per year?d) What is the optimal number of days in between any two orders?e) What is the annual cost of ordering and holding inventory?f ) What is the total annual inventory cost, including the cost ofthe 6,000 units?
- Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5850 units per year. The cost of each unit is $103 and the inventory carrying cost is $9 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 117 units. (This is a corporate operation, and there are 250 working days per year).e) What is the annual cost of ordering and holding inventory?f) What is the total annual inventory cost, including the cost of the 5850 units?Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5850 units per year. The cost of each unit is $103 and the inventory carrying cost is $9 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 117 units. (This is a corporate operation, and there are 250 working days per year).a. What is the EOQ?b) What is the average inventory if the EOQ is used?c) What is the optimal number of orders per year?d) What is the optimal number of days in between any two orders?e) What is the annual cost of ordering and holding inventory?f) What is the total annual inventory cost, including the cost of the 5850 units?Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,050 units per year. The cost of each unit is $99, and the inventory carrying cost is $11 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 121 units. (This is a corporate operation, and there are 250 working days per year). The EOQ is 178.61 The average inventory if the EOQ is used is 89.30 units What is the optimal number of orders per year? _ (round response to two decimal places).
- Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,050 units per year. The cost of each unit is $99, and the inventory carrying cost is $11 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 121 units. (This is a corporate operation, and there are 250 working days per year). The EOQ is 178.61 The average inventory if the EOQ is used is 89.30 units The optimal number of orders per year is 33.87 orders The optimal number of days in between any two orders= 7.38 days What is the annual cost of ordering and holding inventory? _ per year (round response to two decimal places).Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,050 units per year. The cost of each unit is $99, and the inventory carrying cost is $11 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 121 units. (This is a corporate operation, and there are 250 working days per year). The EOQ is 178.61 The average inventory if the EOQ is used is 89.30 units The optimal number of orders per year is 33.87 orders What is the optimal number of days in between any two orders? _days (round response to two decimal places).Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,050 units per year. The cost of each unit is $99, and the inventory carrying cost is $11 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 121 units. (This is a corporate operation, and there are 250 working days per year). The EOQ is 178.61 What is the average inventory if the EOQ is used? _ units (round response to two decimal places).
- Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 6,050 units per year. The cost of each unit is $99, and the inventory carrying cost is $11 per unit per year. The average ordering cost is $29 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 121 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ?_ units (round response to two decimal places).Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,750 units per year. The cost of each unit is $99, and the inventory carrying cost is $8 per unit per year. The average ordering cost is $31 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 115 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ? units (round your response to two decimal places). b) What is the average inventory if the EOQ is used? units (round your response to two decimal places). c) What is the optimal number of orders per year? orders (round your response to two decimal places). d) What is the optimal number of days in between any two orders? days (round your response to two decimal places). e) What is the annual cost of ordering and holding inventory? $ per year (round your response to two…Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,950 units per year. The cost of each unit is $99, and the inventory carrying cost is $8 per unit per year. The average ordering cost is $31 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 119 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ?units (round your response to two decimal places).