Lot Size:Allocated:1200Safety Stock: 10Lead Time: 3Gross RequirementsScheduled ReceiptsProjected On-handProjected AvailableNet RequirementsPlanned Order ReceiptsPlanned Order Releases1401401002406034020120PeriodsDisaurch44010080564040640047. The situation presented in the chart above is in proper balance. If the demand in the fourth period were to bechanged from 40 to 10, which of the following would be true?The on hand would reach 10 in Period 4 but no action would be recommendedA recommendation to increase the scheduled receipt of 100 to 120 and toreschedule it from Period 4 to Period 3 would be made.A recommendation to reschedule the scheduled receipt of 100 for Period 4 toPeriod 5 and to cancel the planned order release for 120 in Period 3 would bemadeA recommendation to reschedule the scheduled receipt of 100 for Period 4 toPeriod 5 would be made with no other changes needed

Ans) When demand is changed to 10. There is enough on hand that all future demands can be satisfied,…

Answered: 120 Lot Size: 0 Allocated: Safety…

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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53. Average demand for a particular item is 1,200 units per year. It costs $100 to place an ordem for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed order-interval model is chosen in this instance, how often (on average) will this item be ordered a) Once a month b) Once every other month c) Twice a month d) Twice every three months e) Three times every two months 54. The EOQ model is most relevant for which one of the following? a) Ordering items with dependent demand b) Determination of safety stock c) Ordering perishable items d) Determining fixed interval ordering quantity e) Determining fixed order quantity 55. What type of process would a paper mill be most likely to use? a) Continuous flow b) Project c) Job shop d) Flow shop 56. The transportation model method that is used to evaluate location alternatives minimizes t a) sources b) destinations c) capacity d) shipping costs
You have the data on the application during the 6 consecutive years below Requirement / Find the expected demand for the year 2008 using the simple moving average method The basis of three periods of time the years 2002 2003 2004 2005 2006 2007 2008 Order quantity 10 20 30 40 50 60
Q4: Suppose that the demand for a product is 400 per year, and the items are withdrawn uniformly. The order cost is $25 and the inventory holding cost is $0.5 per item per year. If shortages cost $1 per item per year, find: 1. The economic order quantity. 2. Maximum inventory. 3.Shortage allowable quantity.
11.5 If sigma is 150 units, and the demand during the lead time is 200 units, calculate the safety stock and order point for: a. A 50% service level. b. An 85% service level.
Using the gross requirements schedule below*, prepare an alternative ordering system that always orders 100 units the week prior to a shortage (a fixed order quantity of 100). What is the cost of this ordering system? D Period 1 2 3 Gross requirements 35 30 40 4 5 6 7 8 9 10 0 10 40 30 0 30 55 *Holding cost = $1/unit/week; setup cost = $100; lead time = 1 week; beginning inventory = 35 units. Prepare a net requirements plan (enter your responses as whole numbers). The holding cost of this ordering system is $ The setup cost of this ordering system is $ The total cost of this ordering system is $ Period Gross requirements On-hand at beginning of period 35 On-hand at end of period Net requirements Order receipt Order release (enter your response as a whole number). (enter your response as a whole number). (enter your response as a whole number). 1 35 2 3 30 40 4 0 7 8 9 10 0 30 55 5 6 10 40 30
Demand at Sharp remains at 1,000, H is still $.50, and we order 200 needlesat a time (as in Example 5 ). But if the true order cost 5 S 5 $15 (rather than $10), what is the annual cost?
Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The fo llowing information is known about the brackets: a) Given the information, what would be the economic order quantity (EOQ)?b) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost?c) Given the EOQ, how many orders would be made each year? What would be the annual order cost?d) Given the EOQ, what is the total annual cost of managing the inventory?e) What is the time between orders?f) What is the reorder point (ROP)?
How does the Wilson approach help in optimizing inventory levels? Provide a step-by-step explanation of the Wilson EOQ (Economic Order Quantity) model.
In a certain firm, the demand for their product is given as 360. The holding cost was estimated to be K0.80 while the ordering cost was K100 per order. In this firm, there are 250 working days in a year.Required; a. What is the EOQ? b. How many orders should be processed per year? c. What is the expected cycle time?d. What will be the total cost for the inventory? ACB firm produces type C fire extinguishers. They make 30 000 of these fire extinguishers per year. Each extinguisher requires one handle (assume a 300 day work year for daily usage rate purposes) the annual carrying cost is K15 per handle. The production setup cost is set at K1500 and a daily production rate of 300.Required;a) What is the optimal production order quantity? b) Determine the following;i. Imaxii. Average inventoryiii. Number of butches per yeariv. Cycle timev. Run time
pls show detailed computation need help
Given: Demand is 1984 items per month. The order frequency is 8 per quarter. The reorder point is 0. What is the lot size (Q)?
Basic EOQ. This type of problem can be recognized when annual demand (D), ordering cost (S), andholding or carrying cost per unit (H) are given. Use Formula 13–2 for order quantity, Formula 13–1for total cost, and D/Q for number of orders a year.A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at asteady rate during the 240 days a year that the plant operates. Annual holding cost is $3 per chip, andordering cost is $120. Determine the following:a. The optimal order quantityb. The number of workdays in an order cycle

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