A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 4800 boxes of apple. It costs OR 50 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the best order quantity that minimizes the total annual inventory cost is O a. None is correct Оb. 200 О с. 199 O d. 371 O e. 500

A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 4800 boxes of apple. It costs OR 50 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the best order quantity that minimizes the total annual inventory cost is O a. None is correct Оb. 200 О с. 199 O d. 371 O e. 500

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

A pizzeria in downtown Changloon is trying to determine the best order quantity for its pizza ingredients. The pizzeria believes it will sell 14,400 pizzas at an average price of RM8 per year. The store buys the ingredients for one pizza at a rate of RM1.50, and the storage cost for each pizza is RM0.80. The cost of ordering more ingredients is RM13. i. Determine the economic order quantity. ii. What would be the total costs for ordering the ingredients one, and five times a year?
Echo Airplane buys and sells its products. One of them has the following demand forecasts for the next 5 months. data: month 1= 55 month 2= 85 month 3= 105 month 4= 120 month 5= 115 It costs $20 to place an order, the product cost is $2.00, and the monthly cost of holding inventory is 12.5%. Use the minimum unit cost (LUC) heuristic to determine the ordering sequence for following monthly demands a) Calculate the cost of the heuristic Please do fast ASAP
ABC analysis on the following set of products Item Annual Demand Unit CostA 211 800 R9B 390 100 R90C 003 450 R6D 100 400 R100E 707 85 R2,000F 660 250 R320G 473 500 R75H 921 100 R75 Soft goods department sells 175 units per month of a certain large bath towel. The unit cost of a towel to the manufacturer is R2.50 and the cost of placing an order has been estimated to be R12.00. There is an inventory carrying charge of 27% of the unit cost per year. What is the optimal order quantity, the order frequency, and the annual holding and setup cost. If the ordering cost can be cut to R4.00, what will be the new economicorder quantity, the order frequency, and annual holding and setup costs.
The seasonal demand for a particular product is given below: Period 1 2 3 4 5 6 Demand 300 450 100 450 450 100 The fixed parameters are: Fixed Cost $8 Unit Production Cost $1 Holding Cost $ 1.3 Calculate total ordering cost using following three methods: i) Lot-for-Lot ii) Wagner-Whitin algorithm iii) Fixed order quantity Which method you will chose to order and why? Please do fast... ASAP... do fast
Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,120 February 4,220 March 3,920 April 4,320 May 4,920 June 4,620 July 5,220 August 4,820 September 5,320 October 5,620 November 6,220 December 5,920 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…
Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Regular Demand Period Time Overtime Subcontract Forecast 1 40 15 40 35 15 60 3 30 15 45 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract cost per unit Carrying cost per unit per month 20 units $100 $150 $250 $4 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $(enter your response as a whole number).
After applying the NWC Rule for the initial tableau of the given transportation model, evaluate the vacant cells. What is the cell which has the most negative evaluation value and what is the cell evaluation value? DESTINATION SOURCE DEMAND X Y N OX-R; 1 OY-S; -1 OX-S; -1 OY-S; -2 P 75 8 12 EI 11 Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325
Help me to solve all this question
1. Determine the inventory order quantity for Diamant’s distributor.2. Compare the optimal order quantity with a seasonally adjusted forecast for demand. Doesthe order quantity seem adequate to meet the seasonal demand pattern for Diamonds(i.e., is it likely that shortages or excessive inventories will occur)?
Consider a supply chain with a manufacturer (M) and a retailer (R). The manufacturer produces a product A at a cost of c = $50. The manufacturer offers the product to the retailer at a wholesale price of w = $70, and fixes the sale price to p = $90. The market demand is normally distributed with mean of 10,000 units and standard deviation of 1000. Answer the following questions: a. What is the optimal order quantity for the retailer? b. What is the optimal order quantity if the wholesale price is changed to $60? Does the optimal order quantity increase or decrease compared to 1a? Why? c. What is the optimal order quantity if the wholesale price is changed to $80? Does the optimal order quantity increase and decrease compared to 1a? Why? d. If the actual market demand is equal to the mean demand, then what are the profits of the manufacturer and the retailer?
1. Padilla Electronics stocks and sells a particular brand of microcomputer. It costs the firm $450 each time it places an order with the manufacturer for the microcomputers. The cost of carrying one microcomputer in inventory for a year is $170. The store manager estimates that total annual demand for the computers will be 1,200 units, with a constant demand rate throughout the year. Orders are received within the minutes after placement from a local warehouse maintained by the manufacturer. The store policy is never to have stock outs of the microcomputers. The store is open for business everyday of the rear except Christmas day. In reference to problem no. 1, determine the number of orders per year
The option attempts to absorb the demand fluctuations is : Capacity option Demand option