4050 000 00 - 5,000 3010 4400 C. Determine the percentage of items in each category and the annual dollar value for each cat- egory for part b. 3. A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per order. Annual carrying cost is $75 per bag. 2 a. Determine the economic order quantity. b. What is the average number of bags on hand? c. How many orders per year will there be? d. Compute the total cost of ordering and carrying flour. e. If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost? 4. A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days a year. Storage and handling costs for the paper are $30 a year per box, and it costs approximately S0 to order and receive a shipment of paper. Chapter Thirtoon i vantory Management a. What order size would minimize the sum of annual ordering and carrying costs? b. Compute the total annual cost using your order size from part a. C. Except for rounding, are annual ordering and carrying costs always equal at the EOQ? d. The office manager is currently using an order size of 200 boxes. The partners of the firm expect the office to be managed "in a cost-efficient manner." Would you recommend that the office manager use the optimal order size instead of 200 boxes? Justify your answer. . Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 order. The manager per has been using an order size of 1,500 flower pots. a. What additional annual cost is the shop incurring by staying with this order size? b. Other than cost savings, what benefit would using the optimal order quantity yield? er has assigned an annual carrying cost of 35 percent of the purchase price per crate. could the firm A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each.
4050 000 00 - 5,000 3010 4400 C. Determine the percentage of items in each category and the annual dollar value for each cat- egory for part b. 3. A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per order. Annual carrying cost is $75 per bag. 2 a. Determine the economic order quantity. b. What is the average number of bags on hand? c. How many orders per year will there be? d. Compute the total cost of ordering and carrying flour. e. If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost? 4. A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days a year. Storage and handling costs for the paper are $30 a year per box, and it costs approximately S0 to order and receive a shipment of paper. Chapter Thirtoon i vantory Management a. What order size would minimize the sum of annual ordering and carrying costs? b. Compute the total annual cost using your order size from part a. C. Except for rounding, are annual ordering and carrying costs always equal at the EOQ? d. The office manager is currently using an order size of 200 boxes. The partners of the firm expect the office to be managed "in a cost-efficient manner." Would you recommend that the office manager use the optimal order size instead of 200 boxes? Justify your answer. . Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 order. The manager per has been using an order size of 1,500 flower pots. a. What additional annual cost is the shop incurring by staying with this order size? b. Other than cost savings, what benefit would using the optimal order quantity yield? er has assigned an annual carrying cost of 35 percent of the purchase price per crate. could the firm A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each.
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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Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
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I need help with question from chapter question #4, 13.4
Transcribed Image Text:4050
000
00
- 5,000
3010
4400
C. Determine the percentage of items in each category and the annual dollar value for each cat-
egory
for part b.
3. A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per
order. Annual carrying cost is $75 per bag.
2
a. Determine the economic order
quantity.
b. What is the average number of bags on hand?
c. How many orders per year will there be?
d. Compute the total cost of ordering and carrying flour.
e. If holding costs were to increase by $9 per year, how much would that affect the minimum total
annual cost?
4. A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days a
year. Storage and handling costs for the paper are $30 a year per box, and it costs approximately
S0 to order and receive a shipment of paper.
Transcribed Image Text:Chapter Thirtoon
i
vantory Management
a.
What order size would minimize the sum of annual ordering and carrying costs?
b. Compute the total annual cost using your order size from part a.
C.
Except for rounding, are annual ordering and carrying costs always equal at the EOQ?
d.
The office manager is currently using an order size of 200 boxes. The partners of the firm
expect the office to be managed "in a cost-efficient manner." Would you recommend that the
office manager use the optimal order size instead of 200 boxes? Justify your answer.
. Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each.
Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20
order. The manager
per
has been using an order size of 1,500 flower pots.
a.
What additional annual cost is the shop incurring by staying with this order size?
b. Other than cost savings, what benefit would using the optimal order quantity yield?
er has assigned an annual carrying cost of 35 percent of the purchase price per crate.
could the firm
A produce distributor uses 800 packing crates a month, which it purchases at a cost of $10 each.
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