A company uses the production run model to determine the number of t-shirts that must be produced per production run. The cost per t-shirt is P150. The holding cost is P5 per unit per year and the cost of setting up the production line is Php1,500 per setup. The production rate is 250 per day and the daily demand rate is 100 units. The optimal production quantity per production run is 5000 units. For each production run, what is the total number of units used during the time where no production is taking place? a. 2000 b. 3000 c. Cannot be determined d. 5000
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A:
Q: A department store sells a certain handkerchief for Php40 per piece. The store averages sales of 80…
A: THE ANSWER IS AS BELOW:
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Q: Your firm uses a periodic review system for all SKUS classified, using ABC analysis, as B or C…
A: Given information Demand (D) = 15080 units/year Ordering Cost (S) = $125.00/ order Holding Cost (H)…
Q: Calculate the break-even point of the firm.
A: THE ANSWER IS AS BELOW:
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- A food manufacturing company orders raw material A, 1200 kg annually. The company estimates its annual storage and handling cost to be RM0.50 per kg per month. The administrative cost for placing and receiving an order is RM250.00. The company operates 310 days per year. The ordering lead time is 5 working days. Currently every two months the company will order 200 kg. The management wants to reduce the total inventory cost. Suggest how this can be achieved and determine when the order should be made. Show all calculations to one decimal point to support your suggestionA restaurant uses 100 per week or 5,000 quart bottles of ketchup each year. The ketchup costs $3.00 per bottle and is served only in whole bottles because its taste quickly deteriorates. The restaurant figures that it costs $10.00 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes 3 weeks for an order to arrive. The restaurant operates 50 weeks per year. The restaurant would like to use an inventory system that minimizes inventory cost. The restaurant has figured that the most economical order size or EOQ is approx. 409 (rounding up the decimals). Approximately, what is the time between two orders (in terms of weeks) 08 06 04 02 None of the above9. A company uses 8000 wheels per year in its manufacture of golf carts. The wheel cost $15 each and is purchased from an outside supplier. The money invested in the inventory cost 10% per year and the warehousing cost amounts to an additional 2% per year. It cost $150 to process each purchase order. Find the quantity of wheels that should be ordered each time an order is placed.
- A company manufacturers 5,000 units of a product per month. The average weekly demand is 275kg. The cost of placing an order is `K100. The purchase price of the raw material is ` K10 per kg. The re-order period is 4 to 8 weeks. The consumption of raw materials varies from 100 kg. to 450 kg. per week. The carrying cost of inventory is 20% of the purchase price. Assuming 52 weeks in a year, you are required to calculate (i) Re-order level (ii) Optimum order quantity and total inventory costs (iii) Maximum stock level (iv) Minimum stock levelA department store sells a certain handkerchief for Php40 per piece. The store averages sales of 80 pieces each week. The store manager's past experience leads him to believe that for each Php2 increase in the price of the handkerchief, one less piece would be sold each week. What price would result in Php3,648 weekly sales?A carpenter makes some chairs for his business. The cushion of the chair costs $15 and the wooden structure costs $6.40. It takes 1.4 minutes to assemble the chair and the hourly cost is $90.00 for assembly time. The company has a fixed operating cost of $20000 per month. They sell the chairs for four times their total variable cost. The company wants to make a monthly profit of $5000. How many chairs must they sell?
- Your firm uses a periodic review system for all SKUs classified, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUs classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year; the item’s current characteristics are:Demand 1D2 = 15,080 units/yearOrdering cost 1S2 = $125.00/orderHolding cost 1H2 = $3.00/unit/yearLead time 1L2 = 5 weeksCycle@service level = 95 percentDemand is normally distributed, with a standard deviation of weekly demand of 64 units.a. Calculate the item’s EOQ.b. Use the EOQ to define the parameters of an appropriate continuous review and periodic review system for this item.c. Which system requires more safety stock and by how much?An airline studied the data from their passenger records and noted that their customers turn up only about 95% of the time. A flight can accommodate 40 passengers and each seat costs 4,000 Php. Suppose each passenger books a ticket independently and the airline decides to sell 42 tickets for the flight. If more than 40 show up for the flight , then the extra passengers will be compensated PhP10,000 for rebooking and other expenses. 5. If Profit = Ticket sales-Compensation of Bumped passenger(s). What is the profit if 42 customers show up?Your firm uses a periodic review system for all SKUS classified, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUS classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year; the item's current characteristics are: Demand (D) = 15,080 units/year Ordering cost (S) = $125.00/order Holding cost (H) = $3.00/unit/year Lead time (L) = 5 weeks Cycle service level = 95 percent Demand is normally distributed, with a standard deviation of weekly demand of 64 units. -Calculate the item's EOQ. - Use the EOQ to define the parameters of an appropriate continuous review and periodie review system for this item. -Which system requires more safety stock and by how much? -How do you think each system can affect your procurement procedures/methods?
- Your firm uses a periodic review system for all SKUS classified, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUS classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year; the item's current characteristics are: Demand (D) = 15,080 units/year Ordering cost (S) = $125.00/order Holding cost (H) = $3.00/unit/year Lead time (L) = 5 weeks Cycle service level = 95 percent Demand is normally distributed, with a standard deviation of weekly demand of 64 units. 1- How do you think each system can affect your procurement procedures/methods?Problem 20-10 (Algo) You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day's paper for $0.30 a copy. You sell a copy of San Pedro Times for $1.10. Daily demand is distributed normally with mean = 265 and standard deviation = 53. At the end of each morning, any leftover copies are worthless and they go to a recycle bin. a. How many copies of San Pedro Times should you buy each morning? (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Round your z-value to 2 decimal places and final answer to to 2 decimal places.) Optimal order quantity b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.) ProbabilityYou are a newsvendor selling the New York Times every morning. Before you get to work, you buy the day’s newspaper for $0.90 a copy. You sell a copy of the New York Times for $4.0. Daily demand is distributed normally with a mean of 130 and a standard deviation of 20. At the end of each morning, any leftover copies can be sold to a recycling center for $0.10. How many copies of the New York