Sam's Job Shop buys one part- Tegdiws for use in its production system. Thparts are needed throughout the entire 365-day year. Tegdiws are used atrelatively constant rate and are ordered whenever the remaining quantitydrops to the reorder level. Data for the product is as follows:Annual demand: 10,000Holding cost (% of item cost): 20%Setup or order cost: $150.00Lead time: 28 daysItem Cost: $10.00Standard deviation of daily demand: 10Service Level: 99%(a) Calculate the order quantity and reorder point.(b) Determine the annual holding and ordering costs respectively.

Holding cost is the cost incurred during the holding, storing and managing of the inventory stock in…

Answered: (a) Calculate the order quantity and…

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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A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days a year that the plant operates. Annual holding cost is $3 per chip, and ordering cost is $120. Determine the following: What is the reorder point, if the lead time is 7 days?
Mac-in-the-Box, Inc., sells computer equipment by mail andtelephone order. Mac sells 1,200 flat-bed scanners per year.Ordering cost is $300, and annual holding cost is 16 percentof the item’s price. The scanner manufacturer offers thefollowing price structure to Mac-in-the-Box: What order quantity minimizes total annual costs?
State and explain in brief any five types of inventory on the basis of classification of its types?
www.www A toy manufacturer uses approximately 40000 silicon chips annually. The chips are used at a steady rate during 350 working days per year. The annual holding cost is $4 per chip, ordering cost is $145, and lead time is 5 days. Determine the annual cost saving if company uses optimal EOQ (part a) instead of current order quantity of 3000 units (Round your answer to 1 decimal places)
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The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 50 cars per month. The cars cost $70 each, and ordering costs are approximately $15 per order, regardless of the order size. The annual holding cost rate is 20%. (a) Determine the economic order quantity and total annual cost (in $) under the assumption that no backorders are permitted. (Round your answers to two decimal places) Q-3354 TC- $ 500 00 X (b) Using a $45 per unit per-year backorder cost, determine the minimum cost inventory policy and total annual cost (in $) for the model racing cars (Round your answers to two decimal places) Q-1024 x x TC-$400.93 (c) What is the maximum number of days a customer would have to wait for a backorder under the policy in part (b)? Assume that the Hobby Shop is open for business 300 days per year. (Round y to two decimal places) 5.12 x days (d) Would you recommend a no-backorder or a backorder inventory policy for…
I only need help with part E please.... The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 50 cars per month. The cars cost $80 each, and ordering costs are approximately $15 per order, regardless of the order size. The annual holding cost rate is 20%. (a) Determine the economic order quantity and total annual cost (in $) under the assumption that no backorders are permitted. (Round your answers to two decimal places.) Q*= TC=$ (b) Using a $45 per-unit per-year backorder cost, determine the minimum cost inventory policy and total annual cost (in $) for the model racing cars. (Round your answers to two decimal places.) Q*= TC=$ (c)What is the maximum number of days a customer would have to wait for a backorder under the policy in part (b)? Assume that the Hobby Shop is open for business 300 days per year. (Round your answer to two decimal places.) days (d)Would you recommend a…
Demand is Normally distributed with mean of 14 per week and a weekly variance of 3. The ordering cost is $81.84. Lead time is 5 weeks. Shortages cost an estimated $1.12 per unit short to expedite orders to appease customers. The holding cost is $5.07 per week. Estimate the stockout risk if the target service level is 0.89. (Enter a number with two decimal places, e.g. 0.12)
The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 50 cars per month. The cars cost $70 each, and ordering costs are approximately $15 per order, regardless of the order size. The annual holding cost rate is 20%. (a) Determine the economic order quantity and total annual cost (in $) under the assumption that no backorders are permitted. (Round your answers to two decimal places.) X Q* TC = (b) Using a $45 per-unit per-year backorder cost, determine the minimum cost inventory policy and total annual cost (in $) for the model racing cars. (Round your answers to two decimal places.) Q* X TC = (c) What is the maximum number of days a customer would have to wait for a backorder under the policy in part (b)? Assume that the Hobby Shop is open for business 300 days per year. (Round your answer to two decimal places.) days (d) Would you recommend a no-backorder or a backorder inventory policy for this product?…
What is a the advantage of using the Fixed-Order-Quantity model in inventory management?
Which are the variety of information contained in the inventory records?

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(a) Calculate the order quantity and reorder point. (b) Determine the annual holding and ordering costs respectively.