4.The FCC Cafeteria, a fast lunch spot in Çankaya University campus, purchases several basic cookingingredients from a supplier. The annual usage (demand), purchasing cost, and setup (order) cost of theseingredients are given in the table below. The inventory carrying rate is 0.10 per unit per year.IngredientAnnual Demand (in units)Purchasing Cost ($ / unit)Setup Cost ($ / order)134100100200100104010102243(a) Assume that all ingredients are ordered independently. For each ingredient, determine the optimalcycle time and order quantity. Calculate the associated total cost of all ingredients.(b) Assume that all ingredients are ordered independently, and the cafeteria management wants to limittheir annual inventory holding cost by $52.5. Using Lagrange multiplier technique, determine theoptimal cycle time and order quantity for each ingredient. Calculate the associated total cost of allingredients.(c) Assume that all ingredients have a fixed (common) order cycle. Determine the optimal cycle time, theorder quantity for each ingredient, and the associated total cost. Draw a figure that illustrates thechange in inventory levels of the ingredients.

Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…

Answered: (a) Assume that all ingredients are…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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

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Palin’s Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). Annual demand 2,750 mufflers Ordering cost $ 35 per order Standard deviation of daily demand 6 mufflers per working day Service probability 76 % Item cost $ 28.00 per muffler Lead time 4 working days Annual holding cost 22 % of item value Working days 275 per year Review period 21 working days a. What is the optimal target level (order-up-to level)? If the service probability requirement is 93 percent, the optimal target level will: Increase Decrease Stay the same
Please help solve all questions.. please
Dave’s local college football team is playing for the national championship in next month’s bowl game, and he’s thinking about having “We’re number one” T-shirts imprinted in honor of the team. It’s too late to get the shirts before game day, but if he orders today, he can get them within a few days after the game. The shirts must be ordered in multiples of 1000, and Dave has estimated the amount of profit he will make for possible outcomes of the game. Given the following payoff table, what will Dave do if he uses the maximin criterion? The maximax criterion? The minimax regret criterion? Order no shirts $0 wins $0 loses $0 ties Order 1000 shirts $800 wins $-200 loses $200 ties Order 2000 shirts $1600 wins $-400 loses $300 ties
Inventory tracking is concerend both ith the quantity and the location of the goods in inventory. Select one: a. True. b. False.
Alpha Products, Inc., is having a problem trying to control inventory. There is insufficient time to devote to all its items equally. The following is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume. ITEM ANNUAL DOLLAR USAGE ITEM ANNUAL DOLLAR USAGE a S 30, 100 k S 1,700 b 27,000 120,000 c 93,000 m 111,000 d 1,400 n 3,000 e 1,800 o 500 f 30,000 p 114, 000 g 1,600 q 2,600 h 2,500 г 28,000 i 3, 200 s 2, 800 j 1,500 t 3, 100 a. Suggest a system for allocating control time? multiple choice ABC analysis Cycle counting b. Specify where each item from the list would be placed.
Give typed full explanation
cost is considered as ordering cost. O a. Average inventory cost O b. Salary paid to store manager O c. Transportion of goods O d. Holding items in inventory
Royal Meat Processing Company buys and processes livestock for sale to supermarkets. In connection with the audit of the company’s financial statements, you have prepared the following notes based on your review of inventory procedures: 1. Each livestock buyer submits a daily report of his or her purchases to the plant superintendent. This report shows the dates of purchase and expected delivery, the vendor and the number, and weights and type of livestock purchased, as shipments are received, any available plant employee counts the number of each type received and places a check mark beside this quantity on the buyer’s report. 2. Vendors’ invoices, after a clerical review, we sent to the appropriate buyer for approval and returned to the accounting department. A disbursement voucher and a check for the approved amount the prepared in the accounting department. Checks are forwarded to the treasurer for signature. The treasurer’s office sends signed checks directly to the buyer for…
The Economic Order Quantity model enables O a. determination of safety stock O b. determining fixed order quantities O c. ordering items with dependent demand O d. determining fixed interval order quantities O e. ordering perishable items
please help, need to see work and answers in excel only
explain the characteristics of inventory situations: 1. lead time 2. sources and level of risk 3. Static versus dynamic problems
When a retailer places large order of inventory: a. Ordering costs reduces and holding costs increases b. Ordering costs reduces and holding costs decreases c. Ordering costs increases and holding costs increases d. Ordering costs increases and holding costs decreases

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