Naelofar.com, Malaysia's largest Hijab, Modest Fashion Online, uses many colorful silkheadscarves in its hand-printed silk headscarves production process. The company uses2,250,000 square yards of these colourful silk headscarves throughout the year. The fixedcosts of placing and receiving an order are RM2500. The price of the headscarf is RM8 persquare yard, and the annual cost of carrying this inventory item is 25% of the price. Thecompany maintains a 20,000 square yards safety stock. The headscarves supplier requirestwo weeks for delivery.a) What is the EOQ for these colourful silk headscarves?b) What is the Average Inventory in RM value?c) Using a 52-week year, at what inventory unit level should an order be placed?

Inventory management is an important concept for organizations dealing with products. EOQ is one of…

Answered: a) What is the EOQ for these colourful…

Practical Management Science

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ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

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Explain the concept of setup or ordering costs and its relevance to EOQ.
16. Cheryl Hunter is responsible for maintaining adequate hospital supplies atfictional St. Thomas Hospital. The demand and lead times for syringes are assumedto be constant. During the past year, the daily demand for syringes was 80 units, andthe lead time from the supplier was 4 days. What is the reorder point?
Explore the concept of reorder point (ROP) within the Wilson Approach. How is it calculated, and why is it crucial for inventory management?
Given the following information for a purchased component, what is the total annual cost for the item? Annual demand = 500,000 Purchase price = $10 per unit Order quantity 100,000 • Order cost = $5 per order • Annual holding cost per unit = = $2 . $2.510,100 O $510,025 $510,250 O $5,100,250 O $5,100,025
03) Halifax Souvenir Company currently orders 500 units four times each year. Each order costs $12 and each unit costs $1.20 per year to carry. On average, it takes 5 days to receive an order from the supplier. The company operates 250 days per year. Required: 1. What is the EOQ? 2. Calculate total annual inventory cost under EOQ. 3. What is the current inventory cost? 4. What is the re-order point?
TOPIC : Inventory Systems for Independent Demand
A. Ltd buys 400 units of an item at a purchase cost Sh.5000 per unit and ordering cost of Sh.2,000 per order placed. The carrying cost is estimated at 24% of cost of an item p.a. The Co. has received a 2% discount offer for purchases of 100 or more units. Required: a) Determine the best inventory policy for this item. b) Determine the discount level at which the firm will be indifferent between taking and not taking the discount offer.
So, what exactly is the function of finished-goods inventory?
If no safety stock is required, what would the re-order point be?
4) Rane Brake Linings gathered information for its brake lining components as presented in the table below. How would the firm classify these items according to an ABC classification system? Initial Information Part # Unit Cost Annual Demand 10 10 200 11 30 125 12 9 100 13 12 5000 14 50 195 15 6 300 16 100 70
K Cesar Rego Computers, a Mississippi chain of computer hardware and software retail outlets, supplies both educational and commercial customers with memory and storage devices. It currently faces the following ordering decision relating to purchases of disks: D S I Purchase price Discount price Quantity needed to qualify for the discount = 5,900 disks. What is the EOQ? 36,100 disks $25 22% $0.87 $0.81 EOQ = units (round your response to the nearest whole number). ncorrect

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a) What is the EOQ for these colourful silk headscarves? b) What is the Average Inventory in RM value? c) Using a 52-week year, at what inventory unit level should an order be placed?