a) For what value of ordering cost would its action be optimal? Its action would be optimal given an ordering cost of $ per order (round your response to two decimal places).
Q: a. Suppose that XYZ Print Inc. decides to establish an order-up-to level of 300 for plain paper. At…
A: Here, as per the question, I would determine the number of boxes XYZ print will order this week,…
Q: The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitanproduces…
A: Qopt = 2DS/Hwhere,Qopt = optimal order quantity per orderD = DemandS = Ordering CostH = Holding…
Q: a. Determine the order quantity. (Round your answer to the nearest whole number.) Order quantity 75…
A: Order quantity can be calculated as follows:
Q: A. Geliga Bhd. is a distributor of industrial product in Johor. Item A is one of the materials…
A: Annual demand (D) = 4000 units Ordering cost (S) = RM 30 Per order Annual Holding cost (H) = RM 15…
Q: A local nursery, Greens, uses 1,720 bags of plant food annually. Greens works fifty-two weeks per…
A: Given data: Annual demand, D= 1720 Holding cost, H= $7 Order Cost, O= $12
Q: Your firm uses a periodic review system for all SKUs classified, using ABC analysis, as B or C…
A: Hence, the EOQ is 1,121 units.
Q: Garden Variety Flower Shop uses 870 clay pots a month. The pots are purchased at $3.60 each. Annual…
A: Given that , 870 clay pots per months O = 870 x 12 = 10, 440 per year ordering cost S = $25 H =…
Q: 1. Weekly demand for smartphones at an Apple store is nor- mally distributed, with a mean of 500 and…
A: The approach of storing, sourcing, selling the inventory is known as inventory management. Inventory…
Q: An electronics manufacturer has 25 days-of-supply of inventory for a particular cellphone model.…
A: Inventory turns helps to indicate the demand for the organization's items. If stock turns high, it…
Q: Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each.Annual…
A:
Q: If the cost of ordering inventory decreases, what happens to the economic order quantity? a. Stay…
A: Inventory management is the management in which raw materials and finished products are stored and…
Q: The new office supply discounter, Paper Clips, Etc. (PCE), sells a certain type of ergonomically…
A: given, Annual demand = D = 900 units Ordering cost = F = $ 20 / order Annual holding cost per unit =…
Q: Peachy Keen, Inc., makes mohair sweaters, blouses with Peter Pan collars, pedal pushers, poodle…
A: Formula:
Q: The shop sells 5,000 hats. If holding cost is 3$ and cost to place an order is 4. What will be…
A: The formula of calculating the Economic Order Quantity is
Q: Consider an item that is ordered per month. The daily requirement is 200 and the lead time for the…
A: Daily Demand= 200 Lead Time= 2 days Working days / month= 25 Ordering cost = 300 per order Carrying…
Q: Alina Limited is a manufacturer of widgets orders components for use in manufacturing. The estimated…
A: Below is the solution:-
Q: A company maintains 218 workdays per year, and one of its primary products has a monthly demand of…
A: Given data Number of working days = 218 workdays per year Monthly demand = 4300 units hence,…
Q: Your firm uses a periodic review system for all SKUS classified, using ABC analysis, as B or C…
A: Economic order quantity helps in better understanding of procurement of raw material and production…
Q: Over in the Marvel universe, you find yourself in charge of ordering Nitinol (a nickel-titanium…
A: Given, Lead time= 1 week
Q: What is the cycle service level for a company that has a re-order point of 400, an average weekly…
A: We have. Re-order point, R = 400 Weekly demand, d = 100 std. deviation of demand, σ = 20 Lead time,…
Q: Aunt Molly's Old Fashioned Cookies bakes cookies for retail stores. The company's best-selling…
A: From the given data, to calculate direct material quantity variance, we need the following data.…
Q: Annual demand for a product is 11,440 units; weekly demand is 220 units with a standard deviation of…
A: Given annual demand D = 11440 units Weekly demand d= 220 units Standard deviation = 80 units…
Q: Caroline, the owner of Caroline's Boutique, Ltd., estimates that she will sell $20,000.00 worth of a…
A: Inventory control is an important aspect of any business. It is a process of measuring the inventory…
Q: Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a…
A: Economic Order Quantity (EOQ), is the order quantity in inventory management that minimises overall…
Q: Annual demand for a product is 8,840 units; weekly demand is 170 units with a standard deviation of…
A: The re-order point is the point at which the company should purchase the new material or resources…
Q: Samantha Ross is the procurement manager for the headquarters of a large Financial company chain…
A: Given data Annual demand (D) = 7000 units annually Cost of each unit = $120 Inventory holding cost…
Q: Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory carrying…
A: Carrying cost is the cost incurred during the storage and managing of the inventory stock in the…
Q: Gentle Ben’s Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The…
A: EOQ or Economic Order Quantity is the mathematical approach applied for managing the inventory…
Q: The Pushton Rubbish Company stocks, among many other products, a certain container, each of which…
A: Given data, D Annual Demand 15000 H Holding Cost 4 S Ordering cost 5
Q: The stock in the second bin in a two-bin system is equal to Select one: O a. 50% of the order…
A: Inventory management refers to the process including ordering, storing, and using a company's…
Q: If Tom decides to order at the economic order quantity, what is the TBO?
A: EOQ stands for economic order quantity. It is a firm's optimal order quantity that undervalues its…
Q: a. What is the Economic Order Quantity? b. What are the total annual order and inventory-holding…
A: As per Bartleby guidelines, we can only solve the first three subparts of one question at a…
Q: Demand for the Deskpro computers at Best buy is 35 units per day. Best Buy incurs a fixed order…
A: Below is the solution:-
Q: 6-27
A: Note- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Tasty Beverage Co. produces soft drinks, specializing in fruit drinks. Tasty produces 5,000 cans…
A: Formula:
Q: Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in…
A: EPQ model of inventory management determines the quantity a company or retailer should order to…
Q: An inventory control system where each item in the inventory is checked or reviewed at fixed…
A: An inventory control system where each item in the inventory is checked or reviewed at fixed…
Q: a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal…
A: EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…
Q: Flag Faber Manufacturing inc of st paul purchases 9,649 top of the line semiconductor; the maximum…
A: The detailed solution is given in Step 2.
Q: Optimal ordering policy: The simple BOM procedure does not consider the economic perspectives of…
A: BOM- Bills of Material procedure is a source of information that is centralized and that has all…
Q: offer price concessions in order to attract larger orders. The price structure is shown below. a)…
A: Given that - Purchase Price = $350 Monthly Demand (d) = 400 Units Holding Cost (H) = $35 Ordering…
Q: production costs $50. The cost of each light is $1. The holding cost is $0.10 per light a. What is…
A:
Q: Geliga Bhd. is a distributor of industrial product in Johor. Item A is one of the materials needed…
A: Annual Demand = D = 4,000 units Ordering Cost = O = RM30 Holding Cost = H = RM15
Q: customers served each day for the past two weeks. M Mario expects total demand for next week to be…
A: Since the demand for the last two weeks is given the forecast of the expected customers for the…
Q: Cindy’s Cider Bar also sells a blend of cherry juice and apple cider. Demand for the blendis…
A:
Q: In each of the following, name the term defined or answer the question. Answers are listed at the…
A: 1) Single-period model is the model, which is appropriate to make a one-time purchase of an item. It…
Q: 2. Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual…
A: Given data, D Annual Demand 9000 H Holding Cost 0.6 S Ordering cost 20 Q Order size used…
Q: Explain the economic order quantity (EOQ) and its impact on cost of operations.
A: Economic Order Quantity: In order to minimize costs for a business, the economic order quantity is…
Q: The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitanproduces…
A: Given data Annual demand = 1215000 Ordering cost = $1200 Holding cost = $0.08 per year Before…
Q: Samantha Ross is the procurement manager for the headquarters of a large Financial company chain…
A: Find the Given details below: Given details Annual Demand (D) 7000 Units/Year Unit cost 120…
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- A local distributor for Hankook tires Company expects to sell 12,600 R14 radial tires nest year. The estimated cost of keeping a R14 tire per annum is ȼ126 and ordering cost is ȼ70. a) What is the optimal order quantity? b) How many times per year does the distributor order R14 tires? c) What is the length of an order cycle, if the company does not operate on Saturdays and Sundays? d) What is the annual total cost if the optimal quantity is ordered?1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following: Annual consumption: 6000 units ; Cost of placing one Order: RO 60 Carrying cost per unit: RO 22. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units.Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). Ordering cost Service probability Annual demand 3,750 mufflers $ 60 92 % per order mufflers per working day per muffler % of item value working days Standard deviation of daily demand Item cost $39.00 working days per year Lead time 3 Working days Annual holding cost Review period 31 250 20 a. What is the optimal target level (order-up-to level)? (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.) Optimal target level b. If the service probability requirement is 92 percent, the optimal target level will: O Stay the same Decrease O…
- Palin’s Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). Annual demand 2,750 mufflers Ordering cost $ 35 per order Standard deviation of daily demand 6 mufflers per working day Service probability 76 % Item cost $ 28.00 per muffler Lead time 4 working days Annual holding cost 22 % of item value Working days 275 per year Review period 21 working days a. What is the optimal target level (order-up-to level)? If the service probability requirement is 93 percent, the optimal target level will: Increase Decrease Stay the sameBIKO is a bike retailer located in the outskirts of Paris. BIKO purchases bikes from PMX in orders of 250 bikes which is the current economic order quantity. PMX is now offering the following bulk discounts to its customers: 2% discount on orders above 200 units 4% discount on orders above 500 units 6% discount on orders above 600 units BIKO is wondering if the EOQ model is still the most economical and whether increasing the order size would actually be more beneficial. Following information is relevant to forming the decision: Annual demand is 5000 units Ordering cost is $100 per order Annual holding cost is comprised of the following: 5% insurance premium for the average inventory held during the year calculated using the net purchase price Warehousing cost of $6 per unit Purchase price is $200 per unit before discount (Hint: We need to compare the total inventory cost of the order quantities at the various discount levels with that of the economic order quantity)Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). $ 35 Ordering cost Service probability Lead time per order 2,970 6. mufflers Annual demand Standard deviation of daily demand mufflers per working day 89 % working days per muffler * of item value working days $21.00 4 Item cost 36 Working days 270 per year Annual holding cost Review period 22 a. What is the optimal target level (order-up-to level)? (Use Excel's NORMSINV) function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.) Optimal target level b. If the service probability requirement is 90 percent, the optimal target level will: O Increase O Decrease O Stay…
- Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 45% of the $9 unit cost and that annual demand is about 240 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal? a) For what value of ordering cost would its action be optimal? Its action would be optimal given an ordering cost of $ ☐ per order (round your response to two decimal places).Norris Harrell’s Computer Store in San Fernando sells a printer for $200. The annual demand for this is 600 units, with a standard deviation of 1.5 units daily. The holding cost is $20, while the cost of ordering is $60 per order. Currently the company is ordering 12 times per year. There are 250 working days per year and the lead time is 10 days. a. Given the current policy of ordering, what is the total ordering and holding costs? b. If the company uses the absolute best inventory policy, what would be the total ordering and holding costs?The Bucks Grande exhibition baseball team plays 50 weekseach year and uses an average of 350 baseballs per week.The team orders baseballs from Coopers-Town, Inc., aball manufacturer noted for six-sigma-level consistency andhigh product quality. The cost to order baseballs is $100 perorder and the annual holding cost per ball is 38 percent of thepurchase price. Coopers-Town’s price structure is:Order Quantity Price per Unit1–999 $7.501,000–4999 $7.255,000 or more $6.50a. How many baseballs should the team buy per order?b. What is the total annual cost associated with the bestorder quantity?c. Coopers-Town, Inc., discovers that, owing to specialmanufacturing processes required for the Buck’s base-balls, it has underestimated the setup time required on acapacity-constrained piece of machinery. Coopers-Townadds another category to the price structure to provide anincentive for larger orders and thereby hopes to reducethe number of setups required. If the…
- Consider again the kitty litter ordering policy for Sam’s Pet Hotel in Problem 13. Suppose that the weekly demand forecast of 90 bags is incorrect and actual demand averages only 60 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? Suppose that actual demand is 60 bags but that ordering costs are cut to only $6 by using the Internet to automate order placing. However, the buyer does not tell anyone, and the EOQ is not adjusted to reflect this reduction in S. How much higher will total costs be, compared to what they could be if the EOQ were adjusted?Enrun Corporation expects to order 140,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $300 per order; the purchase price per chip is $20; and the firm’s inventory carrying costs is equal to 20 percent of the purchase price. (Assume a 360-day year.) What is the economic ordering quantity for chips? If Enrun holds a safety stock equal to a 30-day supply of chips, what is its average inventory level? Assume that Enrun holds a safety stock equal to a 30-day supply of chips. What is the maximum amount of inventory that Enrun will have on hand at any time, that is, what will be the inventory level right after a delivery is made?Mr. Beautiful, an organization that sells weight training sets, has an ordering cost of $35 for the BB-1 set (BB-1 stands for Body Beautiful Number 1). The carrying cost for BB-1 is $15 per set per year. To meet demand, Mr. Beautiful orders large quantities of BB-1 7 times a year. The stockout cost for BB-1 is estimated to be $15 per set. Over the past several years, Mr. Beautiful has observed the following demand during the lead time for BB-1: Demand During Lead Time 100 110 120 130 140 150 Probability 0.1 0.2 0.2 0.2 0.2 0.1 The reorder point for BB-1 is 120sets. What level of safety stock should be maintained for BB-1? The optimal quantity of safety stock which minimizes expected total cost is (enter your response as a whole number). sets