A car manufacturer has holding costs of 37%. One of the items needed in thefactory is door handles. For every order, the facotry incurs a fixed cost of$59.00. The manufacturer needs annually 1,900 of the door handles. Thedoor handles supplier offers a price of $11.00 each for quantities of 350 orfewer and a price of $10.23 for quantities over 350 units.Round your answer to the nearest integer value.How many units should the manufacturer order at one time?unitsWhat is the total annual cost at this order point?

Economic order quantity helps companies to save cost. However, at times discounts are given by…

Answered: A car manufacturer has holding costs of…

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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Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,400 cases. A case of the soft drink costs R&B $3. Ordering costs are $20 per order and holding costs are 25% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy. (a) economic order quantity (round your answer to the nearest integer.) (b) reorder point (c) cycle time (in days) (round your answer to two decimal places.) days (d) total annual cost (in $) (round your answer to two decimal places.) $
Richardson Ski Racing (RSR) sells equipment needed for downhill ski racing. One of RSR's products is fencing used on downhill courses. The fence product comes in 150-foot roll per roll. However, RSR offers quantity discounts. The following table shows the price per roll depending on order size: Quantity Ordered From То Price per Roll 1 100 $215 101 200 $195 201 400 $175 401 and up $155 Click on the datafile logo to reference the data. DATA file (a) Use the VLOOKUP function with the preceding pricing table to determine the total revenue from these orders. $ 614091 (b) Use the COUNTIF function to determine the number of orders in each price bin. From То Price per Roll Number of Orders 1 100 $215 11 101 200 $195 59 201 400 $175 100 401 and up $155 2 172
A local artisan uses supplies purchased from an overseas supplier. The ownerbelieves the assumptions of the EOQ model are met reasonably well. Minimization ofinventory cost is her objective. Relevant data, from the files of the credit firm, are annualdemand (C) = 240 units, ordering cost (B) = 42 MU/order, and holding cost = 4MU/unit/year.a) How many should she order at one time?b) How many times per year will she replenish its inventory of this material?c) What will be the total inventory costs associated with this material? Please mention formulas and do it in detail so I can understand.
18) The demand for an electronic component is normally distributed with an average daily demand of 500 units, and a standard deviation of 50. The lead time for the component is 9 days. If the company sets a reorder point of 4,650 for this component then its service level is approximately Group of answer choices 50 percent 92 percent 98 percent 84 percent
A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they drink coffee. The newspaper costs $1.14 per unit and sells for $1.55 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with µ = 150 and σ = 30. (a) What is your recommended daily order quantity for the coffee shop? (Round your answer to the nearest integer.) (b) What is the probability that the coffee shop will sell all the units it orders? (Round your answer to four decimal places.) (c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.) What happens to the coffee shop's order quantity as the rebate is reduced? The higher rebate ---Select--- ▾ the quantity that the coffee shop should order.
A components manufacturer uses approximately 20,000 units annually of an item. They are used at a steady rate during the 250 workdays that the plant operates. The cost of each item is $7.00, and the annual carrying cost is $0.50 per unit per year. The ordering cost is $50. What is the economic order quantity?
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,600 cases. A case of the soft drink costs R&B $4. Ordering costs are $22 per order and holding costs are 23% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: a. Economic order quantity. If required, round your answer to two decimal places.Q = b. Reorder point. If required, round your answer to the nearest whole number.r =c. Cycle time. If required, round your answer to two decimal places.T = daysd. Total annual cost. If required, round your answer to two decimal places.TC = $
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A manufacturer procures a subassembly from a supplier. The annual demand is 145,000 units, the cost per unit is $4, the inventory-carrying charge is 12 percent, and the order cost is $225. For orders between 10,000 but less than 30,000, a five percent discount is applied, and for orders exceeding 30,000, a eight percent discount is applied. What is the optimal order quantity? Use the Quantity Discount Excel template to find your answer.
A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they drink coffee. The newspaper costs $1.17 per unit and sells for $1.75 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with μ = 150 and a = 30. (a) What is your recommended daily order quantity for the coffee shop? (Round your answer to the nearest integer.) (b) What is the probability that the coffee shop will sell all the units it orders? (Round your answer to four decimal places.) (c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.) What happens to the coffee shop's order quantity as the rebate is reduced? The higher rebate ---Select-- the quantity that the coffee shop should order.

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