A local retailer anticipates a daily demand of 50 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 1.75 times the annual unit holding cost per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal maximum inventory level?? Round-up to the nearest integer O a. 2000 O b. 1000 O c. None is correct O d. 1955 O e. 1898
Q: A company, needs 410 kg of a material per month. It costs RO 100 to make and receive an order, and…
A: From the given data, Monthly Demand = 410 kgs So, Annual demand(D) = 410×12=4920 kgs Ordering…
Q: Medtronic sells medical devices. The company enjoys many growth opportunities, and so it measures…
A: Given Information: Inventory Holding Cost: 25% per year Inventory turnover = 3 times a year Gross…
Q: Al Fursan Inc. needs 300 kgs of a material per month (four weeks). It costs RO 10 to make and…
A: EOQ is the optimal quantity that a company can order to minimize its cost.
Q: The EOQ minimizes the sum of the ordering cost and which of the following costs?a. Stockout cost c.…
A: b. Holding cost
Q: An electronics retailer carries a particular cellular telephone with the following…
A: a. The formula for determining the Economic order quantity, EOQ is EOQ = 2DSH where, D is annual…
Q: Millennium Liquors is a wholesaler of sparkling wines. Its most popular product is the French Bete…
A: Given, Weekly demand-40 cases Purchase price- $100 Fixed Cost-$250 Interest- 15%
Q: Mac-in-the-Box, Inc., sells computer equipment by mail and telephone order. Mac sells 1,200 flat-bed…
A: Given that, Annual demand = 1,200 unitsOrdering cost = $300Annual holding cost = 16% of item price
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows…
A: Economic order quantity is the optimum quantity which should be ordered in order to have minimum…
Q: Ime of 6 days. purchase cost is $31.4 per unit. The cost to place and process an order from the…
A: Given that: EOQ= 1053 units Unit Price = $31.4 Holding cost per unit (H)= 12.2% of 31.4 = 3.8308…
Q: Daily demand for a certain product is normally distributed with a mean of 100 and a…
A: a.) The company is using the fixed-order quantity model where a fixed amount of purchase is made at…
Q: a) What is the economic order quantity? units (round your response to the nearest whole number). b)…
A: EOQ = sqrt (2DS/H) Annual Holding cost = EOQ/2 x H Annual ordering cost = D/EOQ x S Reorder…
Q: The selling price of a certain type of computer is RO 800, and the annual holding cost is 20% of the…
A: Solution- Appropriate economic order quantity [2× demand× order cost÷holding cost ]1/2 Demand =…
Q: Lulu hypermarket estimates daily demand of 16.25 kgs for a product. It costs RO 100 to make and…
A: THe correct answer is
Q: Red Corporation uses the reorder point model to plan its purchases. It sells its sole product at the…
A: The re-order point is the point at which the company needs to re-fill the inventory stock to avoid…
Q: Red Corporation uses the reorder point model to plan its purchases. It sellsitssole product at the…
A: The re-order point is the point at which the company needs to re-fill the inventory stock to avoid…
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailer allows…
A: The formulas that we are going to use are: Optimal batch size, Q = [2.a.K.(h + p) / h.p]1/2…
Q: The company uses 150,000 gallons of alcohol per month. The cost of carrying the alcohol in…
A: Given data: Annual demand = 150,000 × 12 = 18,00,000 gallons Carrying cost = P0.50 per gallon per…
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailer allows…
A: Given: D = 12000 S = 200 OMR H = 1 OMR
Q: Demand is Normally distributed with mean of 6 per week and a weekly variance of 11. The ordering…
A: Mean demand = 6 variance = 11 ordering cost = 40.29 shortage cost = 2.35 lead time = 2 service level…
Q: A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 60…
A: Given Annual Demand D= 12000 pounds (200x60) Ordering cost Co=$15 Holding Cost Ch=$3 per pound per…
Q: What would be the safety stock, the reorder point and the total cost if: a) There is a constant lead…
A: Annual Demand (D) = Weekly demand(d) × No. of weeks = 80 × 50…
Q: Humber Lakeshore High-Tech Company buys memory chips in Japan for $8.00 each. It costs $300.00 to…
A: Economic order quantity - Formula for EOQ=2×D×CsCh Cs - Cost of Ordering Ch - Cost of holding
Q: Daily demand for a certain product is normally distributed, with a mean of 100 and a standard…
A: 1. It is a continuous order system of ordering goods, in the given scenario. Here, the ordering…
Q: Piddling Manufacturing assembles security systems. It purchases 3,600 high-definitionsecurity…
A: Formula:
Q: A local retailer anticipates an annual demand 15000 units of a product. The retailer allows…
A: Below is the solution:-
Q: The purchasing agent for a company that assembles and sells air-conditioning equipment in a Latin…
A: Implications of price escalations on order size are: Increase in order size Since price is…
Q: A subcontracting firm Gamma Pharmaceuticals Ltd. located in Western India dealing with generic…
A: answer: d) Using the fixed order quantity system to control inventory, EOQ is determined by using…
Q: The retailer operates 300 days per year. What is the optimal backorder (shortage) level in units?…
A: In the above question, the annual demand is given as 12000 units and the ordering cost is 200 OMR,…
Q: Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The…
A: GIVEN, standard deviation = 30 units a day holding cost = $0.25 cranium operates = 200 days per year
Q: Cress Electronic Products manufactures components used in the automotive industry. Cress purchases…
A: The question is related to the Inventory Management. Economic Order Quantity is that level of…
Q: Jim recently acquired a designer shoe store in downtown silver spring. The former owner always…
A: Annual total cost using the old policy: Number of shoes per order=100 Holding cost=$12 Total cost:…
Q: The Annual demand of a product is 50000 and ordering cost is 7000 per order and EOQ is 10000 units.…
A:
Q: A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit…
A: Given information, Demand = 4000 units per year Ordering Cost = $ 20 per year Holding cost = $4…
Q: 1. A local retailer anticipates an annual demand 15000 units of a product. The retailers] allows…
A: Complete Inventory cost is the total cost associated with requesting and carrying inventory,…
Q: A certain type of computer costs RO 800, and the annual holding cost is 20% of the value of the…
A: Yearly Demand (D): = 10000 Requesting Cost (S): = 150 Per Order Cost per Unit (C): = 800…
Q: A local retailer anticipates an annual demand 12000 units of a product. The retailer allows…
A: Annual demand = 12000 unit Backorder rate= 3 OMR Ordering cost= 200 OMR Holding cost=1 OMR per unit…
Q: I run a Ford car dealership, and I experience known and constant demand for cars. I sell 10,000 cars…
A: Demand is the total quantity of products and services for which the customers are ready to pay…
Q: Your firm uses the continuous review system to manage a product, and operates 52 weeks a year. The…
A: Lead time demand is a the multiplied sum of average weekly demand and number weeks as lead time.…
Q: Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile…
A: Find the Given Details below: Given details Demand (D) 8888 Units/year Carrying (Holding) cost…
Q: In the basic EOQ model, the average inventory level is equal to one-half this value: A. Maximum…
A: Question: In the basic EOQ model, the average inventory level is equal to one-half this value: A.…
Q: Alocal retailer anticipates an annual demand 12000 units of a product. The retailers allows…
A: Economic order quantity is the optimum quantity which should be ordered in order to have minimum…
Q: un Coca Cola, and I experience known and constant demand for Coke syrup. I use 10,000 liters of…
A: The formula for economic order quantity is: EOQ = square root of: [2 × S× D] / H S = Setup costs…
Q: Salam's company expects its production of pipes will require 600,000 tons of aluminum over its…
A: EOQ = 1AOCi
Q: What is the economic ordering quantity (EOQ)?
A: The answer is as below:
Q: A product is made-to-stock. Annual demand is 60,000 units. Each unit costs $4.00 and the annual…
A: Given data, D Annual Demand 60000 Cost of item 4 H Holding Cost 1 S Ordering cost 300
Q: 5. A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows…
A: Below is the solution:-
Q: Staples buys printer cartridges for $20. The demand for the cartridges is 300 per month. Staples…
A: Given Information: Annual Demand = 300 cartridges per month The purchase cost of a printer = $ 20…
Q: Xootr procures wheels from a Chinese supplier. The supplier charges $200 perorder (no matter the…
A: Given Ordering cost = Co=$200 per order Cost per wheel = $3 Holding cost = Ch=40% D=80,000 wheels…
Q: A small local pharmacy, Tacky Pharm sells self-test kits for diabetic patients. These kits cost…
A:
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- The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.B). As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 679 units. Ordering costs are $7 each time an order is placed, and the holding cost is 10% of the unit cost. Your supplier provided the following price schedule. Quantity Price per Unit 1 - 100 $5.65 101 - 350 $4.95 351 or more $4.55 What ordering-quantity policy do you recommend?I need answers A company uses on an average 216 parts a day with a standard deviation of 16 parts per day in a manufacturing process. Cost of placing and receiving an ordering is BDT 40,000. Estimated monthly carrying cost is BDT 90 per part. Orders are delivered approximately 7 days after being placed. The delivery time is normal with a mean of 7 days and a standard deviation of 2 days. The company is open 360 days per year. Find the order quantity that is economical. If the Company takes 3% stock out risk, then find safety stock (SS) quantity and Re-Order Point? 3.If the supplier offers a discount of BDT 8 per circuit board for purchasing of 4000 boards at a time, then financially evaluate and justify whether the company will go with the offer or not? 4.The person who orders the boards follows this rule: Order when the amount on…
- Describe the nature of the costs that affect inventory size ?1. A local retailer anticipates an annual demand 15000 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 4 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1OMR per unit. The retailer operates 300 days per year. What is the minimum total inventory cost in OMR? Round-up to the nearest integer?? a. 1960 O b. 2191 C. 1789 d. 1898 e. 1550 O f. None is correctCharlie’s Pizza orders all of it pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every seven weeks to take orders. Because the orders are shipped directly from Ital, they take six weeks to arrive. Charlies Pizza uses an average of 250 pounds of pepperoni each week, with a standard deviation of 18 pounds. Charlie prides itself on offering only the best –quality ingredients and a high level of service, so it wants to ensure a 95 percent probability of not stocking out on pepperoni. Assume that the sales representative just walked in the door and there are currently 470 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order? (Use the excels NORMSINV( ) function to find the critical value for the given a-level, (Round you z-value to 2 decimal places and final answer t
- Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers, in Atlanta. Annual demand is 2,000 lamps, ordering cost per order is $60, carrying cost per lamp is $12. a) What is the EOQ? lamps per order (round your response to the nearest whole number).Sam’s Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags.Demand = 90 bags/weekOrder cost = $54/orderAnnual holding cost = 27 percent of costDesired cycle@service level = 80 percentLead time = 3 weeks 118 working days2Standard deviation of weekly demand = 15 bagsCurrent on-hand inventory is 320 bags, with no open orders or backorders.a. What is the EOQ? What would be the average time between orders (in weeks)?b. What should R be?c. An inventory withdrawal of 10 bags was just made. Is it time to reorder?d. The store currently uses a lot size of 500 bags (i.e., Q = 500). What is the annual holding cost of this policy? Annual ordering cost? Without calculating the EOQ, how can you conclude from these two calculations that the current lot size is too large?e. What would be the annual cost saved by shifting from the 500-bag lot size to the…40) PLEASE HELP WITH THIS! Gentle Ben's Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $3 per bottle and Is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 100 bottles (closed two weeks per year) with a standard devlation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. b. At what inventory level should he place an order? Note: Use Excel's NORM.S.IN( function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.
- Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory system. It purchaseskitty litter for $10.75 per bag. The following information isavailable about these bags.Demand = 95 bags>weekOrder cost = $58>orderAnnual holding cost = 25 percent of costDesired cycle@service level = 90 percentLead time = 4 weeks 128 working days2Standard deviation of weekly demand = 16 bagsCurrent on-hand inventory is 315 bags, with no open ordersor backorders.a. What is the EOQ? What would be the average time betweenorders (in weeks)?b. What should R be?c. An inventory withdrawal of 10 bags was just made. Is ittime to reorder?d. The store currently uses a lot size of 490 bags (i.e.,Q = 490). What is the annual holding cost of this policy?Annual ordering cost? Without calculating the EOQ, howcan you conclude from these two calculations that thecurrent lot size is too large?e. What would be the annual cost saved by shifting from the490-bag lot size to the EOQ?Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory system. It purchaseskitty litter for $10.75 per bag. The following information isavailable about these bags.Demand = 95 bags>weekOrder cost = $58>orderAnnual holding cost = 25 percent of costDesired cycle@service level = 90 percentLead time = 4 weeks 128 working days2Standard deviation of weekly demand = 16 bagsCurrent on-hand inventory is 315 bags, with no open ordersor backorders. a. Suppose that the weekly demand forecast of 95 bags isincorrect and actual demand averages only 65 bags perweek. How much higher will total costs be, owing to thedistorted EOQ caused by this forecast error?b. Suppose that actual demand is 65 bags but that orderingcosts are cut to only $10 by using the Internet to automateorder placing. However, the buyer does not tell anyone,and the EOQ is not adjusted to reflect this reduction in S.How much higher will total costs be, compared to whatthey could be if…A local distributor for a national tire company expects to sell approximately 9,240 tires of a certain size and tread design next year. Annual carrying cost is $18 per tire and ordering cost is $84. The distributor operates 286 days a year. a. What is the EOQ? (Round your answer to a whole number.) 1:00 b. How many times per year does the store reorder? (Round your answer to two decimal points.) Number of Ondors per Year c. What is the length of an order cycle? (Round your answer to two decimal points.) Length of Order Cycle d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.) Total Annual Inventory Cost