answer both parts A mall-order house uses 15,975 boxes a year. Carrying costs are 42 cents per box a year, and ordering costs are $99. The followingprice schedule applies.Number of Boxes1,000 to 1,9992,000 to 4,9995,000 to 9,99910,000 or moreClick here for the Excel Data FilePrice per Box$1.451.351.251.20a. Determine the optimal order quantity. (Round your answer to the nearest whole number.)Optimal order quantityNumber of orderboxesb. Determine the number of orders per year. (Round your answer to 2 decimal places.)per year

EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…

Answered: a. Determine the optimal order…

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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A mail-order house uses 15,800 boxes a year. Carrying costs are 46 cents per box a year, and ordering costs are $94. The following price schedule applies. Number of Boxes 1,000 to 1,999 2,000 to 4,999 5,000 to 9,999 10,000 or more Price per Box $1.30 1.20 1.10 1.05 a. Determine the optimal order quantity. (Round your answer to the nearest whole number.)
An SKU costing $10 is ordered in quantities of 500 units; annual demand is5200 units, carrying costs are 20% and cost of placing an order is $50.Calculate1. Average inventory2. Number of orders placed per year3. Annual Inventory carrying cost4. Annual Ordering cost5. Annual total cost
A bookstore manages the inventory based on a continuous review system with the order quantity Q = 40, and the reorder point = 25. The lead time is 2 days without uncertainty. At the end of day 0, the inventory position = on-hand inventory = 40. The demand in the following five days is 7, 6, 9, 13, and 8, respectively. What is the inventory position at the end of day 5? a. 22 b. 3 c. 43 d. 37
A restaurant has an annual demand for 886 bottles of California wine. It costs $2 to store 1 bottle for 1 year, and it costs $10 to place a reorder. Find the optimum number of bottles per order.
Dave’s local college football team is playing for the national championship in next month’s bowl game, and he’s thinking about having “We’re number one” T-shirts imprinted in honor of the team. It’s too late to get the shirts before game day, but if he orders today, he can get them within a few days after the game. The shirts must be ordered in multiples of 1000, and Dave has estimated the amount of profit he will make for possible outcomes of the game. Given the following payoff table, what will Dave do if he uses the maximin criterion? The maximax criterion? The minimax regret criterion? Order no shirts $0 wins $0 loses $0 ties Order 1000 shirts $800 wins $-200 loses $200 ties Order 2000 shirts $1600 wins $-400 loses $300 ties
Petromax Enterprises uses a continuous review inventorycontrol system for one of its SKUs. The following informationis available on the item. The firm operates 50 weeks in a year.Demand = 50,000 units>yearOrdering cost = $35>orderHolding cost = $2>unit>yearAverage lead time = 3 weeksStandard deviation of weekly demand = 125 unitsa. What is the economic order quantity for this item?b. If Petromax wants to provide a 90 percent cycle-servicelevel, what should be the safety stock and the reorder point?
A printing company anticipates using 40,000 reams of paper at a uniform rate over the next year. Each time they place an order for X units of reams of paper, it is charged a flat fee of $200. Carrying costs are $4 per unit per year. A. use the formula for Economic Order Quantity to find out how many reams of paper they should purchase in each order. B. how many orders should they place over the year?
It takes approximately 2 weeks (14 days) for an order ofsteel bolts to arrive once the order has been placed. The demandfor bolts is fa irly constant; on the average, the manager, MichelleWu, has observed that the hardware store sells 500 of these boltseach day. Because the demand is fairly constant, Michelle believesthat she can avoid stockouts completely if she orders the bolts atthe correct time. What is the reorder poin t?
Economic Order Quantity (EOQ) is a method used to calculate the ideal quantity to order. The underlying concepts of EOQ is the balance between ordering cost and holding cost. perform two calculations: A = annual demand = 20,000 Cp = Cost of an order which includes preparing and following up the order = $100.00 Ch = Unit inventory cost per year or item cost (P) $100 times annual carrying cost rate (r) (25%) 1. Use an excel file to calculate the EOQ order. Follow the video provided:
An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200units, carrying costs are 20%, and the cost of placing an order is $50. Calculate thefollowing:a. Average inventory.b. Number of orders placed per year.c. Annual inventory carrying cost.d. Annual ordering cost.e. Annual total cost.
The EOQ model with quantity discounts attempts todetermine:a) the lowest amount of inventory necessary to satisfy acertain service level.b) the lowest purchase price.c) whether to use a fixed-quantity or fixed-period orderpolicy.d) how many units should be ordered.e) the shortest lead time

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a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal order quantity boxes b. Determine the number of orders per year. (Round your answer to 2 decimal places.) Number of order per year