A Data Table Annual demand for denim cloth 40,700 yards Ordering cost per purchase order $185 Carrying cost per year 10% of purchase costs Safety-stock requirements None Cost of denim cloth $11 per yard The purchasing lead time is 2 weeks. The Fabric World is open 220 days a year (44 weeks for 5 days a week). Print Done
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- Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000The Best Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Ordering costs per purchase order Carrying costs per year P15,000 P300 per unit Annual demand is 20,000 packages per year. The quantity per order equals 1,000 units. What is the total annual ordering and holding costs? P450,000 P25,000 P300,000 P150,000Find EOQ and total cost per year to order and carry Adam jigs and tools uses 3,200 units of a product per year on a continuous basis. Carrying costs= P70 per year, ordering costs = P262.05 per order. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory.
- Exercises Outdoor Living Manufacturers uses 1,000 units of a product per year. Its fixed cost is $28 per order, while the carrying cost is $5 per unit per year. The lead time is 5 days and, therefore, the firm keeps 7 days' usage in inventory as safety stock. (Note: Use a 365-day year where required.) a. Calculate the EOQ and the average inventory. b. How many orders will Outdoor Living Manufacturers place during 1 year? c. When should Outdoor Living Manufacturers place its orders? 15Demand for the Child Cycle at Best Buy is 9000 units per year. Best Buy incurs a fixed order placement, transportation, and receiving cost of OMR 48 each time an order is placed. Each cycle costs OMR 12 and the retailer has a holding cost of 20 %. Evaluate the number of cycles (EOQ) that the retailer should order and number of orders per year. a. 600 units and 15 orders b. 178.88 units and 10 orders c. 126.49 units and 15 orders d. 109.54 units and 10 ordersA store sells a product that has the annual demand of 16,156 units. It purchases the product from supplier A for $74.4 per unit. The unit inventory carrying cost per year is 14 percent of the unit purchase cost. The cost to place and process an order from the supplier is $107 per order. Supplier A has a delivery lead time of 7 days. The store operates 300 days a year. Assume EOQ model is appropriate. What is the optimal total annual inventory and purchase cost for the store? Use at least 4 decimal places.
- Demand for a book at Amazon.com is 250 units per week. The product is supplied to Amazon from a factory. The factory charges Amazon $10 per book, while the total cost of shipping an order from the factory to the Amazon, when the shipment size is Q, is given by Shipment cost = $50 + 2Q Assume the annual inventory carrying cost is 20 percent. a-1. What is Amazon's total cost per shipment? Cost per shipment $ Q a-2. What is the annual holding cost per book? (Round your answer to 2 decimal places.) Annual holding cost$| per book b. What is the optimal shipment size? (Assuming 50 weeks per year. Round your answer to the nearest whole number.) Optimal shipment size books c. What is the average throughput time? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Average throughput time monthsC E H The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00 per unit. The ordering cost is $10.00 per order, and the annual holding cost is estimated at 15% of the unit value. 1. What is the EOQ for the ABC? 2. What is the total annual inventory cost for the mother board if it is ordered in economic quantities? 3. How many orders should be placed each year? D Demand 40000 units H Holding Cost S Ordering Cost 4.5 $/unit/yr 10 $/order Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Quantity Average Total Holding Cost Total Ordering Cost Total COST = 100 200 300 400 500 1000 2000The Best Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Ordering costs per purchase order Carrying costs per year P15,000 P300 per unit Annual demand is 20,000 packages per year. The purchase price per package is P1,600. What is the economic order quantity? 2,000,000 units 3,464 units 150,000 units 1,414 units
- TTT Inc. sells 100,000 tea bags a year. Other data are as follows: Selling price/bag=P2.50 Purchase cost/bag =P1.50Ordering cost =P5.40/orderCarrying cost=20% of unit costOperating days per year=250Ave. lead time on purchases=6 daysMaximum lead time=13.5 days Compute the reorder point for TTT Inc.Triple T Inc. sells 100,000 tea bags a year. Other data are as follows:Selling price/bag P2.50 Carrying cost 20% of unit costPurchase cost/bag P1.50 Operating days per year 250Ordering cost P5.40/order Ave. lead time on purchases 6 daysMaximum lead time 13.5 days Compute the reorder point for Triple T Inc.Demand for a product is 12,000 units per year. Every time an order is made, the company must pay $15.00 per order. The cost to hold an order in inventory is $2.00 per unit per year. Calculate the cost if the company orders 3,000 units each time. O A. $100 O B. $125 OC. $10,000 O D. $150