Problem 20-30 (Algo)It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities forthe various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 x 14 BSW. Aperpetual inventory system has been used, so you examine this, as well as other records, and come up with the following data:Cost per tireHolding costDemand50 each25 percent of tire cost per year1,100 рer yearOrdering costStandard deviation of daily demandDelivery lead time32 per order7 tires8 daysBecause customers generally do not wait for tires but go elsewhere, you decide on a service probability of 90 percent. Assume thedemand occurs 365 days per year.a. Determine the order quantity. (Round your answer to the nearest whole number.)Order quantity75 tiresb. Determine the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do notround intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)Reorder pointtires

Order quantity can be calculated as follows:a) Order quantity = 2DSH = 2×1100×3225 percent of 50 = 75 b) Reorder point can be calculated as below: d= 1100/365=3.01Reorder point = 3.01 (8)+1.28(7) =33.04

Answered: a. Determine the order quantity. (Round…

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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CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break and other data for the problem: Price of copper $ 0.79 per pound up to 2,999 pounds $ 0.78 per pound for orders between 3,000 and 5,999 pounds $ 0.76 per pound for orders 6,000 pounds or greater Annual demand 50,000 pounds per year Holding cost 20 percent per unit per year of the price of the copper Ordering cost $ 30 Which quantity should be ordered?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
In the basic EOQ model, the average inventory level is equal to one-half this value: * Maximum inventory level.Order quantity.Reorder pointBoth A and B.
pls answer both...plsss..easy questions...just want to confirm my answers...
Counting items to ensure an order is correct, is an exampleof:A. stockout costB. carrying costC. ordering costD. Setup cos
12 Which of the following is NOT an assumption of the economic order quantity model shown below? Select one: a. Demand is known, constant, and independent. b. Lead time is known and constant. c. Production and use can occur simultaneously. d. The only variable costs are setup cost and holding (or carrying) cost. e. Quantity discounts are not possible.
Originally I got 96, but I don't believe that is right. Please help! tysm :)
The following statements refer to the Economic Order Quantity (EOQ) model. Which of the following are true? I. The EOQ is found by minimizing the total demand function. II. Total annual purchasing costs affects the EOQ. III. The EOQ model takes the timing of reordering into account.
If D = 8,500 per month, S = $42 per order, and H= $2.50 per unit per month, a) What is the economic order quantity? The EOQ is b) How does your answer change if the holding cost doubles? The EOQ is units (round your response to the nearest whole number). The EOQ is units (round your response to the nearest whole number). c) What if the holding cost drops in half? units (round your response to the nearest whole number).
16 Brooke Army Medical Center dispenses 390,000 bottles of brand name pharmaceutical annually. The optimal safety stock (which is on hand initially) is 1,000 bottles. Each bottle costs the center $10, inventory carrying costs are 30%, and the cost of placing an order with its supplier is $175. I What is the economic order quantity? Format is x,xxx (number only) What is the maximum inventory for this medication? Format is x,xxx How often must the center order (in days)? Format is xx days or x days How many orders of this pharmaceutical will need to be placed each year? Format is x or xx (number only)
can you help me with this, show me how to do on excel plz
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).

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