5:20A particular raw material is available to a company at three different prices, dependingon the size of the order:Less than 100 pounds100 pounds to 999 pounds1,000 pounds or more$20 per pound$19 per pound$18 per poundThe cost to place an order is $60. Annual demand is 2,900 units. The holding (orcarrying) cost is 20 percent of the material price.What is the economic order quantity to buy each time, and its total cost? (Round youranswers to the nearest whole number.)Economic order quantityTotal costpoundsW

Annual Demand (D) = 2,900 unitsOrdering cost (S) = $60Holding cost (H) = 20% of material price

Answered: A particular raw material is available…

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...

See similar textbooks

Similar questions

Abey Kuruvilla, of Parkside Plumbing, uses 1,230 of a certain spare part that costs $24 for each order, with an annual holding cost of $25. Part 2 a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). Order Size Total Cost ($) 25 enter your response here 40 enter your response here 50 enter your response here 60 enter your response here 100 enter your response here b) What is the economic order quantity? units (round your response to two decimal places).
A medical equipment has an average monthly demand is 134 units. Its unit cost is $385. It costs $486 to place an order, and the inventory carrying cost is $44 per unit per year. The equipment requires a 95% of service level with a safety stock requirement of 20 units. What is the equipment's minimum annual total inventory cost?
A manufacturing company produces 500 units of a product per day. If the setup cost for production is $1000 and the holding cost is $2 per unit per year, calculate the Economic Order Quantity (EOQ).
A company orders 100 units of a raw material every time its inventory level drops to 50 units. The lead time for the delivery of the raw material is 5 days. Currently, the inventory level is at 80 units. Assuming constant demand, calculate the reorder point for the raw material.
Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.
Company S offers the following discount schedule for its sheets. Company K orders sheet from Company S. Company K has an ordering cost of $45. The carrying cost is 20%, and the annual demand is 100 sheets. Order Unit Cost 9 sheets or less $18.00 10 to 50 sheets $17.50 More than 50 sheets $17.25 The total cost of ordering more than 50 sheets is
A manufacturer procures a subassembly from a supplier. The annual demand is 145,000 units, the cost per unit is $4, the inventory-carrying charge is 12 percent, and the order cost is $225. For orders between 10,000 but less than 30,000, a five percent discount is applied, and for orders exceeding 30,000, a eight percent discount is applied. What is the optimal order quantity? Use the Quantity Discount Excel template to find your answer.
Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How much would be Item X's total annual procurement cost? A. None of the above B. Php 8,485 C. Php 16,971 D. Php 2,000,000
Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 25,000 units, a cost per order of $80, and a holding cost per unit per year of $16?
A company uses a special widget (SP) in its production process. The company uses 100 SP units per month in a fairly uniform production process. Each SP unit costs R30. Due to the stringent controls associated with the ordering of the widget the order cost is R300 per order. The widget requires special handling and refrigeration and the cost of holding inventory is estimated to be R200 per unit year. Which order size would you recommend that the company use? Suppose the supplier of the special widget offers the company a reduced purchase price of R29/widget, but they need to order 100 or more at a time. Would you recommend that the company accept this offer? Annual demand Inventory carrying cost Order cost Purchase price 1200 widgets (100 x 12) R200/widget R300/order R30/widget
Item X is a typical object stored in a company's replacement parts warehouse. Per year, the company uses about 2,000 Item X items, and costs Php 1,000 per product. Both premiums and capital charges, storage costs contribute to 18 percent of item unit costs. It costs Php 400 to place an order for more of Item X. It runs 360 days a year and Item X is sent 9 days after order placing. How much Item X units can each be ordered? A. 94 parts. B. 95 parts C. 100 parts D. 2 thousand units

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS