What is the optimal order size for the NYC shop? How much is the new quantity going to save the owner? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)X Answer is complete but not entirely correct.Optimal Q for NYCcoffeeshopTotal cost$Amount saved1,732.42 X3,157.57 XX Answer is complete but not entirely correct.$ 1,425.15 A popular, local coffeeshop in one of the suburbs of New York City (NYC) estimates they use 3,000 pounds of coffee annually. Theyhave to determine how many pounds to order each time in order to minimize their total annual cost.a. Determine the optimal size of the order assuming an EOQ model with a holding cost of $10 per pound annually and an ordering costof $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.)✓ Answer is complete and correct.Optimal Q244.95b. The owner has recently opened another store of the same size in New York City; however, the demand for coffee is increased to3,800 pounds annually, and the holding cost is $60 per pound. Those numbers are much higher as is the cost of real estate in NYC.The owner places orders of the same size as the first store because they are the same size stores. How much will the total cost be inthe new coffeeshop? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Economic order quantity helps the company in deciding what should be ordered by an inventory manager…

Answered: A popular, local coffeeshop in one of…

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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Please do not give solution in image formate thanku. A semiconductor manufacturer purchases enormous amounts specialty gases to be used in its manufacturing processes. Its order quantity for argon is 1,400 cylinders, and it places many orders during any given year. This manufacturer holds no safety stock because the supplier is very close and demand for this gas is flat. Over a year's time (in the long run), what would be the average inventory level for this gas?
The Bird feeder sales are 5 units per day and the store opens 360 days per year. The price of bird feeder is $40 per unit. The cost of placing an order (S) with the supplier is $40. Annual holding cost (H) is 16% of a feeder's price. Your boss choses a 360-unit lot size () so that new orders could be placed less frequently. Answering the following questions: a. Define # of orders per year if order Q=360. b. Define annual ordering cost (if Q=360) c. Define average inventory level, assuming zero safety stock. (if Q=360) d. Define annual inventory carrying cost (if Q=360)
9. A local retailer anticipates an annual demand 12000 units of a product. The retailers allows shortages for that product, and these shortages are backordered at a rate of 3 OMR per unit backordered. The cost of ordering is 300 OMR whereas , the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year . What is the optimal backorder (shortage ) level in units? Round -up to the nearest integer a. 633 b. 1550 C. None is correct d. 860 e. 775 f. 895
A food processor purchases corn for use in its products. The firm uses 700 pounds of corn per week and purchases corn for $0.45 per pound from a supplier. The cost to hold one pound of corn in inventory for one year is $0.09. Each time the firm orders corn from the supplier, the firm must pay a $48 order processing charge. Assume there are 52 weeks in a year and round your answer to the nearest integer value. What is the optimal order quantity (in pounds)? pounds
A bakery uses 1000 bags of flour a year. It costs $50 to order, and holding costs are $5 per bag on an annual basis. What is the optimal order quantity? a. 350 b. 400 c. 141 d. 200 e. 245
Surge Electric uses 4,000 toggle switches a year. Switches are priced as follows: 1 to 499, 90cents each; 500 to 999, 85 cents each; and 1,000 or more, 80 cents each. It costs approximately$30 to prepare an order and receive it, and carrying costs are 40 percent of purchase price perunit on an annual basis. Determine the optimal order quantity and the total annual cost.
I run Coca Cola, and I experience known and constant demand for Coke syrup. I use 10,000 liters of syrup annually. The cost of ordering is $100, and the annual cost of holding a liter of syrup is $4. What is the inventory cost (setup cost + ordering cost) of ordering the economic ordering quantity (EOQ)? Round to the nearest dollar, without the dollar sign. For example, if your answer is $2443.3433, enter 2443.
I run a Ford car dealership, and I experience known and constant demand for cars. I sell 10,000 cars annually. The cost of ordering is $1,108, and the annual cost of holding a car on the lot is $500. What is the economic ordering quantity (EOQ)? Round to the nearest whole number (so if your answer is 443.363, round to 443)
Andy's Auto Dealership (AAD) is a family-run auto dealership selling both new and used vehicles. In an average month, AAD sells a total of 160 vehicles. New vehicles represent 60 percent of sales, and used vehicles represent 40 percent of sales. Max has recently taken over the business from his father. His father always emphasized the importance of carefully managing the dealership's inventory. Inventory financing was a significant expense for AAD. Max's father consequently taught him to keep inventory turns as high as possible. Examining the dealership's performance over recent years, Max discovered that AAD had been turning its inventory (including both new and used vehicles) at a rate of 8 times per year. What is AAD's average inventory (including both new and used vehicles)? Drilling down into the numbers, Max has determined that the dealerships new and used businesses appear to behave differently. He has determined that turns of new vehicles are 7.2 per year, while turns of used…
HairGlow uses a chemical in the production of one of its hair products at a rate of 1,000 litres per year. The cost of placing an order and of receiving the chemical once it arrives in the warehouse is Ksh 30 and Ksh 70 respectively. The chemical is purchased at Ksh 20 per litre. Holding costs per year for a litre of the chemical is considered to be 15 percent of its cost. Find the optimal order size
Peter operates an ice cream shop and needs to order milk from a dairy supplier. The average daily milk consumption is 9 gallons, and the standard deviation is 2 gallons. The delivery time is 3 days on average, with a standard deviation = 1 day. Peter can place an order at any time, and he decides the order quantity = 100 gallons. What is the reorder point if he wants to keep the 95% service level?
At Dot Com, a large retailer of popular books, demand is constant at 17,000 books per year. The cost of placing an order to replenish stock is $8, and the annual cost of holding is $3.00 per book. Stock is received 12 working days after an order has been placed. No backordering is allowed. Assume 250 working days a year. books. (Enter your response rounded to the nearest whole number.) orders. (Enter your response rounded to the nearest a. Dot Com's optimal order quantity is 301 b. The optimal number of orders per year is whole number.)

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