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a) i. the minimal order quantity of the product from the outside supplier if the product is not allowed to sell during production. ii. the minimal number of orders per year. Explain whether the nearest integer number of orders per year is justified. iii. the cycle time of a lot in months. iv. the annual minimal total cost of ordering and inventory holding for that minimal order quantity. v. the reorder point if the lead time of delivering a lot is 2 days,? b) If the production rate of processing the product is 1200 per year and the set up cost per set up is 65 Dollar. If the selling of the product is allowed during production, determine

a) i. the minimal order quantity of the product from the outside supplier if the product is not allowed to sell during production. ii. the minimal number of orders per year. Explain whether the nearest integer number of orders per year is justified. iii. the cycle time of a lot in months. iv. the annual minimal total cost of ordering and inventory holding for that minimal order quantity. v. the reorder point if the lead time of delivering a lot is 2 days,? b) If the production rate of processing the product is 1200 per year and the set up cost per set up is 65 Dollar. If the selling of the product is allowed during production, determine

Practical Management Science
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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1. Suppose the demand of a product in a retail store is 800 per year and it occurs at a constant rate. Placement of an order of this product to an outside supplier by the store is 40 Dollar. The super market authority has calculated the inventory holding cost per unit per year as 90 cents. Assuming no occurrence of shortages of the product, find a) i. the minimal order quantity of the product from the outside supplier if the product is not allowed to sell during production. ii. the minimal number of orders per year. Explain whether the nearest integer number of orders per year is justified. iii. the cycle time of a lot in months. iv. the annual minimal total cost of ordering and inventory holding for that minimal order quantity. v. the reorder point if the lead time of delivering a lot is 2 days,? b) If the production rate of processing the product is 1200 per year and the set up cost per set up is 65 Dollar. If the selling of the product is allowed during production, determine i) the economic product quantity the cycle time of delivering a lot to the retailers the number of deliveries per year the annual minimal total cost of set up and inventory holding for delivering the ii) iii) iv) EPQ.
Transcribed Image Text:1. Suppose the demand of a product in a retail store is 800 per year and it occurs at a constant rate. Placement of an order of this product to an outside supplier by the store is 40 Dollar. The super market authority has calculated the inventory holding cost per unit per year as 90 cents. Assuming no occurrence of shortages of the product, find a) i. the minimal order quantity of the product from the outside supplier if the product is not allowed to sell during production. ii. the minimal number of orders per year. Explain whether the nearest integer number of orders per year is justified. iii. the cycle time of a lot in months. iv. the annual minimal total cost of ordering and inventory holding for that minimal order quantity. v. the reorder point if the lead time of delivering a lot is 2 days,? b) If the production rate of processing the product is 1200 per year and the set up cost per set up is 65 Dollar. If the selling of the product is allowed during production, determine i) the economic product quantity the cycle time of delivering a lot to the retailers the number of deliveries per year the annual minimal total cost of set up and inventory holding for delivering the ii) iii) iv) EPQ.
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