Question 2. A convenience store, Shop Around the Corner, sells 5000 cans of peas every year. ShopAround the Corner owns his own trucks, each of which has capacity of carrying 100 cans. Utilizing eachtruck costs $100. There is also $50 fixed replenishment cost and $1 per unit per year inventory holdingcost.a) Calculate the optimal order quantity of Shop Around the Corner at each replenishment?b) If Shop Around the Corner has a storage capacity of 680 cans, how would the optimal orderquantity change?

Optimal order quantity is described as the means of determining the amount of product that will be…

Answered: Question 2. A convenience store, Shop…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Subject: Logistic management Q): Calculate EOQ where as Annual demand is 2543570 units Ordering cost per order is 78, Inventory carrying cost per unit is 167
Problem 16-16 (Algo) The McDonald's fast-food restaurant on campus sells an average of 7,200 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 795 pounds of hamburger in stock. Assume that the hamburger patties cost $4 a pound and there are 52 weeks in a year. a. What is the Inventory turnover for the hamburger pattles? (Round your answer to 2 decimal places.) Inventory turnover ratio per year b. On average, how many days of supply are on hand? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Average days of supply
Problem 13-16 The McDonald's fast-food restaurant on campus sells an average of 4,800 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 465 pounds of hamburger in stock. Assume that the hamburger patties cost $3 a pound and there are 52 weeks in a year. a. What is the inventory turnover for the hamburger patties? (Round your answer to 2 decimal places.) Inventory turnover per year b. On average, how many days of supply are on hand? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average days of supply
Question 30 Store A purchases cases of fertilizer for its lawn-care business from a supplier who charges Store A $30 per order and $50 per case. Each case consists of five bags of fertilizer. Store A needs 2,000 bags of fertilizer a year. Store A's annual holding costs are 30%. If Store A's order quantity is 20 cases, what is its average inventory level? Group of answer choices 10 40 25 20
Question Two Calculate the Total annual cost D=1,500units Q*= 250 units S = $10 per order N = 5 orders per year H= $.50per unit per year T= 50 days. Question Three The following information is given to you D = 19,000 units/yr; H = $4/unit/year; S=$25/order. Calculate the EOQ, Annual holding cost and annual ordering cost. Question Four The following information is given to you, D = 200 units/yr; H = $4/unit/year; Q= 60. Calculate the annual setup cost.
ECUR UMIC ORDER QUANTITY CALCULATIONS (2 QUESTIONS) Company uses 800 units of a product per year on a continuous basis. The product year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed and the a safety stock of 5 days usage in inventory. has carrying costs of $50 A. Calculate the economic order quantity a. 98 B. Determine the reorder a. 150 days (3 CASH DISCOUNTS point. ONS) (Assume (EOQ). a 360-day year.) per unit per firm requires
13.37. Kelly's Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 20 gallons and a standard deviation of 4 gallons. The lead time required to receive an order of beer from the local distributor is 12 days. Determine
Q2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually. Q2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually.
1. William Beville's, computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S = 19,500 units/year = $25/order Holding cost H = $4/unit/year a) What are the annual holding costs for the workbooks?
Question 28 Firm A purchases cases of fertilizer for its lawn-care business from a supplier who charges $40 per order and $60 per case. Each case consists of four bags of fertilizer. Firm A needs 1800 bags of fertilizer a year. Firm A's annual holding costs are 25%. What is Firm A's economic order quantity? Group of answer choices 64 49 46 40
Inventory Management Ch 12 12.40 Uriel A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 75 pounds of Kona coffee beans a day. (Demand can be assumed to be distributed normally, with a standard deviation of 15 pounds per day.) After ordering (Fixed cost-$16 per order), beans are always shipped from Hawaii within exactly four days. Per-pound annual holding costs for the beans are $3. a) What is the EOQ for Kona Coffee Beans? b) What are the total annual hoding costs of stock for Kona coffee beans? c) What are the total annual ordering costs for Kona coffee beans? d) Assume the management has specified that no more than a 1% risk during stockout is acceptable. What should the reorder point be? e) What is the safety stock needed to attain a 1% risk of stockout during lead time? f) What is the annual holding cost of maintaining the level of safety stock needed to support a 1% risk? g) If management specified that a 2% risk of stockout during…
Mo. M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other homes applliences. demand of 265 units, which is constant throughout the year.The carrying cost is estimated to be $1.25 per unit per year and the ordering cost is $19 per order . Please show your work for full points. (a) To minimize cost, how many units should be ordered each time an order is placed? (b) How many orders are needed per year with the optimal policy? (c) What is the total annual cost of orderieg and holding inventory?

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