A food processor purchases corn for use in its products. The firm uses 700 pounds of corn per week andpurchases corn for $0.45 per pound from a supplier. The cost to hold one pound of corn in inventory forone year is $0.09. Each time the firm orders corn from the supplier, the firm must pay a $48 orderprocessing charge.Assume there are 52 weeks in a year and round your answer to the nearest integer value.What is the optimal order quantity (in pounds)?pounds

Optimal order quantity is the quantity that company should purchase so that their total inventory…

Answered: A food processor purchases corn for use…

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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Inventory can be very expensive for firms to hold and manage. One measure of how effective a firm is at managing their inventory is the inventory sales ratio (inventory/sales). Assume a firm has quarterly sales of 1 million and inventory is normally distributed with a mean of $500k and a standard deviation of $100k. simulate the expected inventory to sales ratio for 10,000 iterations. What is the expected mean inventory to sales ratio? What is the probability that the inventory sales ratio is less than 0.5?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
You are conducting a retrospective analysis for an Order-Up-To system (thus, the unsold inventory at the end of a week is carried over to the next week). The beginning inventory in week 1 is 150 units, the demand in week 1 is 180 units and the demand during week 2 is 250 units. If you receive a shipment of 115 units every week, at the end of week 2, the inventory level is 180 the inventory level is 200 the inventory level is 310 the backorder level is 30 the backorder level is 50 none of the above is correct
Every year XYZ Corp. sells 3,300 units of its product. It is charged $56.50 every time it reorders from its supplier and its inventory holding costs are $6.20 per unit. In order to minimize overall inventory costs, what would be the firm's average number of units that it holds?
A restaurant has an annual demand for 886 bottles of California wine. It costs $2 to store 1 bottle for 1 year, and it costs $10 to place a reorder. Find the optimum number of bottles per order.
A restaurant has an annual demand for 893 bottles of California wine. It costs $2 to store 1 bottle for 1 year, and it costs $7 to place a reorder. Find the optimum number of bottles per order. ..... The optimum number of bottles per order is (Type a whole number.)
An online retailer sells 1,500 t-shirts per year. The cost of the t-shirts to the store is $3.00 and the cost of placing an order is $15 per order. It cost $0.60 per t-shirt per year for the retailer to hold the t-shirts. The retailer sells the t-shirts for $9.99. Determine (a) the optimal order quantity, (b) the order frequency (c) the annual holding and setup cost.
Ray wishes to determine the optimal order quantity for its best-selling bike in his bike store. Ray pays the supplier a wholesale price of $118 each for this bike. Ray has estimated the average daily demand for this bike is 23 units. The store opens 304 days a year. The cost to carry one bike in the store for a whole year is 8% of the unit bike cost. Ray has estimated that, on average, the order processing cost, i.e., ordering cost, with the bike supplier each time is $152, and it roughly takes 20 working days to receive the order from the supplier. Ray wishes to avoid the stock-out situation with a probability of 95%, and this requires Ray to carry a safety stock of 30 bikes in the store. What is the optimal order quantity (EOQ value) that Ray should order each time from the bike supplier to minimize his long-run inventory cost?
I run a Ford car dealership, and I experience known and constant demand for cars. I sell 10,000 cars annually. The cost of ordering is $819, and the annual cost of holding a car on the lot is $500. What is the economic ordering quantity (EOQ)? Round to the nearest whole number (so if your answer is 443.363, round to 443)
A company purchases wood for use in its products. The firm uses 760 pounds of wood per week and purchases wood for $1.75 per pound from a supplier. Each time the firm orders wood from the supplier, the firm must pay a $75 order processing charge. The firm's annual holding cost percentage is 31%. Do not round intermediate calculations. Assume there are 52 weeks in a year and round your answer to two decimal places. If the company orders 3,000 pounds of wood with each order, what is the sum of the annual holding and ordering costs? dollars
A retailer has two stores selling the same product. Weekly demand at store 1 is normally distributed with a mean of 100 and a standard deviation of 10, while weekly demand at store 2 is normally distributed with a mean of 150 and a standard deviation of 25. Demand at the two stores is independent. The retailer orders from a supplier with a 1 week lead time using a periodic review policy with a review period of 1 week, and targets a 95% service level. If the retailer wants to centralize inventory across the two stores, i.e., hold just one stock of inventory to serve demand from both stores, what should the order-up-to level be? PLEASE SHOW CALCULATION
A company has the demand of 1800 units per year (demand rate is constant), holding costs of $13 per unit and setup costs (ordering cost) of $27 per order. The order lead time is 1 days, and the company operates 245 days every year. To avoid a stockout, they need to place an order at least ______ days before the inventory runs out.

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