esProblem 11-4 (LO2)An appliance manufacturer has a plant near Toronto that receives small electric motors from a manufacturer located in Winnipeg. Thedemand for motors is 118,000 units per year. The cost of each motor is $125. The motors are purchased in lots of 3.400 units. Theownership of motors transfers to the appliance manufacturer in Winnipeg. The question is which mode of transportation, truck or train,the appliance manufacturer should use to bring the motors from Winnipeg to Toronto. The railroad company charges $3 per motor.and it takes approximately seven days by train. The trucking company charges $5 per motor, but it takes only three days. Theappliance manufacturer will keep 1,400 units as safety stock if a truck is used and 2.500 units as safety stock if a train is used fortransportation. Assume 365 days per year. If the holding cost rate is 25 percent of unit cost per year, which mode of transportation willminimize total transportation and in-transit and safety holding cost? Hint. The value of a motor in Toronto for calculating the safetystock holding cost is $125 plus cost of freight per unit.Mode of transportation(Click to select)

Demand for motors= 118,000 units per yearLot size= 3400 units Cost of motor= $125For Truck…

Answered: 4 Problem 11-4 (LO2) An appliance…

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

Similar questions

WindCo Inc. owns several delivery vans that could be sold very quickly in the event that the company runs into financial trouble. These delivery vans should be considered ______. Question 38 options: A) long-term assets B) fixed assets C) current assets D) current liabilities E) accounts receivable
2. (Quantity Discount) County Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90 per syringe because of security and theft. The hospital supply firm offers the following quantity discount pricing schedule. Qty 0-9,999 10,000-19,999 20,000-29,999 30,000-39,999 40,000-49,999 50,000+ Price $ 3.40 $ 3.20 $ 3.00 $ 2.80 $ 2.60 $ 2.40 What is best order quantity for syringes that minimize total cost?
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
5. The Ngo Farms produces its own natural organic fertilizer, which it sells mostly to the gardeners and homeowners. The annual demand for fertilizer is 270,000 pounds. The company is able to produce 305,000 pounds annually. The cost to transport the fertilizer from the plan to the nursery is $620 per load. The annual carrying load cost is $0.12 per pound. In reference to Problem No. 5, compute the maximum inventory level.
(Revenue Mgmt) Donut Shop Donna's Delicious Donuts (DDD) produces 380 donuts each morning. There are 3 flavors of glaze Donna coats the donuts with: Regular Glaze, Chocolate Glaze, and Blueberry Glaze. Tommy of Tommy's Terrific Tours (TTT) called Donna and said he wants to bring his tour bus by DDD at 11:00am tomorrow. Normally, DDD has sold out of donuts by 11:00am, but Donna told Tommy she would hold back at least 30% of all donuts made that morning until the tour bus arrived. In addition, she said she would give tour customers a 20% discount off of the regular price. Donna has only enough blueberry glaze on hand to make 90 blueberry glaze donuts.lq 100 The table below shows the prices and maximum demand for the different options. Develop and solve an LP model to maximize revenues for DDD on the day the tour bus arrives. (Include Ranges.) What is her maximized amount of revenues? How many total regular glaze, chocolate glaze, and blueberry glaze donuts will she make? How many regular…
Which of the following defines Inbound Logistics the most? 1. The process of finding and purchasing goods and services for the needs of the supply chain. 2. The process of storage and transportation of finished products from a warehouse or distribution center to customers. 3. The process of acquiring raw materials and resources from suppliers and distributing them to manufacturing facilities. 4. The process of planning and control over the use of inventory to ensure that materials are available as required to meet production schedules.
7. Shipments of Product Q from a plant to a wholesaler are made in lots of 400. The wholesaler's average demand for Q is 150 units per week. Lead time from plant to wholesaler is 5 weeks. The wholesaler pays for the shipments when they leave the plant. The plant has proposed several new lead time and lot size options to the wholesaler (see table below). If the wholesaler's goal is to minimize total cycle plus pipeline inventories, which option should the wholesaler select? OPTION CURRENT 1 2 3 SHIPMENT LOT SIZE 400 500 800 1,000 PLANT-TO- WHOLESALER LEAD A. option #1 B. option #2 C. option #3 D. remain with the current option TIME 5 4 3 2
Topic: Threats and controls of the disbursement cycle Lourdes works at the manufacturing company General Grains, Inc., where she serves as an inventory control employee. One of her tasks is to create orders for the necessary raw materials for manufacturing. Therefore, she periodically checks inventory levels from a computer in her office within the warehouse. Once she identifies the items that need to be restocked, she reviews the list of suppliers, selects one, and creates a purchase order from her computer, adding a new entry to the purchase orders file. Additionally, she prints a copy of the purchase order and sends it via mail to the supplier. As a final step, Lourdes sends an email to the accounts payable officer and the receptionist, providing them with a link that grants access to the purchase order from their respective computer terminals. All company computers are networked to a centralized accounting system, giving all involved parties access to the same information. When the…
Conduct a mathematical analysis of the Wilson EOQ model and its practical applicability in real-world scenarios.
am. 124.
Explain INVENTORY CONTROL SYSTEMS?
Pls solve this question correctly in 5 min i will give u like for sure Question # 1 Teresa Cohan is attempting to perform an inventory analysis on one of her most popular products. Annual demand for this product is 5,000 units; unit cost $200; carrying cost is considered to be approximately 10% of the unit price. Order costs for her company typically run nearly $30 per order and lead time averages 10 days. Discounted unit cost of Rs. $150 (carrying cost remain the same) for more than 300 units is also being offered. (Assume a 50-week year. a)What is economic order quantity? b)What is the reorder point? c)What is the total carrying + ordering cost? d)What is optimal number of orders per year? e)Would you recommend availing the discount?

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

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

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

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…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS