Homework Help is Here – Start Your Trial Now!
Business
Operations Management
2.1 Determine the EOQ of an item for spares inventory replenishment, where: a) The cost per unit is R 1500 b) The cost of preparing for a shipment and sending a truck to the warehouse is R750 c) The estimated cost of holding the inventory, including capital tied up, is 25% of the initial inventory value d) The annual demand is 250 units and the cost per order and inventory carrying charge is fixed.

2.1 Determine the EOQ of an item for spares inventory replenishment, where: a) The cost per unit is R 1500 b) The cost of preparing for a shipment and sending a truck to the warehouse is R750 c) The estimated cost of holding the inventory, including capital tied up, is 25% of the initial inventory value d) The annual demand is 250 units and the cost per order and inventory carrying charge is fixed.

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question
2.1 Determine the EOQ of an item for spares inventory replenishment, where: a) The cost per unit is R 1500 b) The cost of preparing for a shipment and sending a truck to the warehouse is R750 c) The estimated cost of holding the inventory, including capital tied up, is 25% of the initial inventory value d) The annual demand is 250 units and the cost per order and inventory carrying charge is fixed. 2.2 An equipment is made up of 30 components of the same part with a predicted mean failure frequency of 1500 hours. The equipment operates 24 hours a day and spares are provisioned at 60-day intervals. a) How many spares should be carried in inventory to ensure 96% probability of having a spare available when required.
Transcribed Image Text:2.1 Determine the EOQ of an item for spares inventory replenishment, where: a) The cost per unit is R 1500 b) The cost of preparing for a shipment and sending a truck to the warehouse is R750 c) The estimated cost of holding the inventory, including capital tied up, is 25% of the initial inventory value d) The annual demand is 250 units and the cost per order and inventory carrying charge is fixed. 2.2 An equipment is made up of 30 components of the same part with a predicted mean failure frequency of 1500 hours. The equipment operates 24 hours a day and spares are provisioned at 60-day intervals. a) How many spares should be carried in inventory to ensure 96% probability of having a spare available when required.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS