A manufacturer produces umbrellas. The production rate is 500 per day. The monthly demand for umbrellas is 2100 (and so usage perday is 70). Setup cost is $60 and holding cost is $1 per umbrella per month. What is the economic production quantity? (Use thenearest whole number)OA. 775OB. 541OC. 835OD. 620OE. 894OF. 693O.G.502OH.899

Economic production quantity is optimal quantity. it is calculated with following formula:- Economic…

Answered: A manufacturer produces umbrellas. The…

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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Similar questions

Kooyman hardware sells 31 different types of drills. They had demand for 25 of the drills and satisfied 78 percent of the demand. What was their fill rate for drills? % ( Do not round intermediate calculations.
1. William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H a) Define inventory management. = 19,500 units/year = $25/order = $4/unit/year
University of Florida football programs areprinted 1 week prior to each home game. Attendance averages90,000 screaming and loyal Gators fans, of whom two-thirdsusually buy the program, following a normal distribution, for$4 each. Unsold programs are sent to a recycling center thatpays only 10 cents per program. The standard deviation is5,000 programs, and the cost to print each program is $1.a) What is the cost of underestimating demand for eachprogram?b) What is the overage cost per program?c) How many programs should be ordered per game?d) What is the stockout risk for this order size?
The following data give monthly Demband >1300 units Ordenng cost Holding lo st to Q - $ 15 pe oder $2/ units peo year 464 Lead time 4 days %3D wha t is the tolal annua / vanable inventory Cost Cie total annus! total aroual ordening) © $968 $ 8 ® $484 D $ I436 14520
A National chain of type fitters stocks a popular type for which the following information is available. The company operates on 50-week year and Normally operates from Monday to Friday only. Average usage 140 types per day Minimum usage 90 types per day Maximum usage 175 types per day Lead time 10 to 16 days Reorder quality 3000 Cost per types n$1500 Holding cost per unit 3% of unit cost Ordering cost per year n$75.50 Calculate the ordinary coat based on the current reorder quantity?
9. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use Maximum daily use Minimum daily use ЕOQ Cost of placing an order Working days per year 280 200 240 180 1,000 P20 250 days Lead time 6 days What is the cost of carrying an inventory per unit per year? 10. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use Maximum daily use Minimum daily use EOQ Cost of placing an order Working days per year 280 200 240 180 1,000 P20 250 days Lead time 6 days What is the average inventory?
Inventory order is placed when O a. Only when projected or actual stocks on hand is below zero O b. None of these O c. Only when projected or actual on hand stocks are higher than the safety stock. O d. Only when projected or actual on hand stocks value is positive.
Which of the following is one of the assumptions of EOQ model? Group of answer choices Annual demand is known and even throughout the year Orders are received partially There are quantity discounts Multiple items are involved Lead time varies
20 Lead time for one of your fastest-moving products is a) What would be an appropriate reorder point? 100 days. Demand during this period averages units per day. units (enter your response as a whole number). b) How does your answer change if demand during lead time doubles? c) How does your answer change if demand during lead time drops in half? units (enter your response as a whole number). units (enter your response as a whole number).
ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings. A True B False
Answer on b) Sales price = 80 kr Purchase price = 30 kr 80 – 30 = 50 kr profit 20 magazines * 80 kr = 1.6000 kr which will maximize the profit over time. Still dont get the answer on question c)
Please explain me in brief about Pros and Cons of Re-Order Point Control and Re-Order Cycle Control Inventory control Systems.

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