A local cement manufacturing factory produces cement bags, and each bag is 100 kg in weight. The daily demand 20,000 kgs per day. The company produces daily at a rate of 25 percent more than the daily demand. Assuming there are 250 workdays, the setup cost is 1000 OMR, and the annual holding cost is 1 OMR per kg. What will the optimal maximum inventory level on-hand end of each production run? Round- up to the nearest integer О а. None is correct O b. 44722 O c. 44728 O d. 57735 O e. 45722

A local cement manufacturing factory produces cement bags, and each bag is 100 kg in weight. The daily demand 20,000 kgs per day. The company produces daily at a rate of 25 percent more than the daily demand. Assuming there are 250 workdays, the setup cost is 1000 OMR, and the annual holding cost is 1 OMR per kg. What will the optimal maximum inventory level on-hand end of each production run? Round- up to the nearest integer О а. None is correct O b. 44722 O c. 44728 O d. 57735 O e. 45722

Name: A local cement manufacturing factory produces cement bags, and each b
Uploaded: 2024-03-20T06:57:05.000Z
Channel: Bartleby
Description: A local cement manufacturing factory produces cement bags, and each bag is 100 kg in weight. The dailydemand 20,000 kgs per day. The company produces daily at a rate of 25 percent more than the dailydemand. Assuming there are 250 workdays, the setup

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

The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is $64.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005? OA. $2050 O B. $1360 O C. $1697 O D. $825 O E. $1200
Nestle Ltd. produces its premium plant food in 30 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000O Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag. What should be the optimal production quantity? Round-up to the nearest integer
Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 50 weeks each year Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 1 per bag What is the optimal (time) length of uptime in years? a 0.031 b. 0.039 C. 0.023 D. 0.033 E. None is correct
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 290 per day, and it uses these subcomponents at a rate of 12,700 per year (of 250 working days). Holding costs are $2 per item per year, and ordering costs are $31 per order. a) What is the economic production quantity? 690.88 units (round your response to two decimal places). b) How many production runs per year will be made? 18.38 production runs (round your response to two decimal places). c) What will be the maximum inventory level? 569.86 units (round your response to two decimal places). d) What percentage of time will the facility be producing components?% (enter your response as a percentage rounded to two decimal places).
Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 250 and the annual holding cost rate is OMR O.550 per bag. What should be the optimal production quantity? Round-up to the nearest integer O a. 11228 O b. None is correct O C. 12553 O d. 11010 e. 14035
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,200 units. Southeastern estimates its annual holding cost for this item to be 323 per unit. The cost to place and process an order from the supplier is $73. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. a) What is the economic order quantity? units (round your response to the nearest whole number). b) What are the annual holding costs? $ (round your response to the nearest whole number) c) What are the annual ordering costs? S (round your response to the nearest whole number). d) What is the reorder point? units (round your response to the nearest whole number).
Yen Inc. uses one raw material type in its manufacturing process. It needs 3,750 kilos of this material each month. It incurs P500 each time when making and receiving orders. Annual carrying cost per unit costs P15 in warehousing and P5 in financing costs. If Zen purchases 1,000 kilograms each time, how much lower would the annual cost be if Zen would now follow the EOQ model?
Top Hatz Inc. makes a variety of ski hats. The average demand for the ‘Nordic Dream’ hat is 125 per week and production is capable of producing 500 hats per week. Set-up is $245. The value of the finished hats is $25 and the annual holding cost per item is 20% of its value. What is the production order quantity? What is the production time for each cycle? What is the average time between orders, assuming there are 350 days available per year? Top Hatz Inc.’s average demand for the ‘Nordic Dream’ hat increases to 350per week; its production capability improves to 700 hats per week; set-up cost falls to $95; and the annual holding cost per item increases to 35% of its value. What is the effect on POQ, production time for each cycle and average time between orders?
Fursan Inc. needs 310 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it takes 14 work days to receive it. The annual holding cost is 15 % of purchase price. The price RO 1 per kg. The company is operating 6 days per week. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer Select one: a. 200 b. 175 c. 181 d. 188
Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 50 weeks each year Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 1 per bag What is the optimal (time) length of uptime in years? Oa 0.031 b. 0.039 0.023 Od 0.033 0. None is correct
Mr. Ahmed works in a bakery which operates ó days a week, 49 weeks a year. The bakery needs flour which is delivered to the bakery at 7.5 OMR each order. Mr. Ahmed needs 10 bags of four, 10 kg weight each bag. Each bag costs OMR 12. The annual holding cost per bag is 19% of the purchase price of bag. What will be the total annual variable cost, if banks only offer maximum of OMR 1500 for purchasing in a single order? a. 331.80 O b. 320.55 OC None is correct Od. 318.9 Oe 368.2
1000. Nestle Ltd. It produces its premium plant food in 40 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag. What will the optimal maximum inventory level on hand end of each production run? Round - up to the nearest integer ?