Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $35 per delivery (no matter how much isdelivered) and $1.20 per gallon. Joe's annual holding cost per unit is 35 percent of the price per gallon. Joe uses 250 gallons of maltper week.a.Suppose Joe orders 1,000 gallons each time. What is his average inventory (ingal)?(Round your answer to 2 decimal places.)Suppose Joe orders 1,500 gallons each time. How many orders does he place withhis supplier each year?How many gallons should Joe order from his supplier with each order to minimizethe sum of the ordering and holding costs?(Round your answer to 3 decimal places.)Suppose Joe orders 2,500 gallons each time he places an order with the supplier.What is the sum of the ordering and holding costs per gallon?(Round your answer to 2 decimal places.)e.Suppose Joe orders the quantity from part (c) that minimizes the sum of theordering and holding costs each time he places an order with the supplier. What isthe annual cost of the EOQ expressed as a percentage of the annual purchasecost?f.If Joe's supplier only accepts orders that are an integer multiple of 1,000 gallons,how much should Joe order to minimize ordering and holding costs per gallon?Joe's supplier offers a 3 percent discount if Joe is willing to purchase 8,000 gallonsg. or more. What would Joe's total annual cost (purchasing, ordering, and holding) beif he were to take advantage of the discount?gallonsordersgallonsper gallon%gallons

The ordering charge for each delivery is 35 The weekly demand =250 gallons The annual demand=the…

Answered: a. Suppose Joe orders 1,000 gallons…

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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3: A manufacturer maintains an inventory of needles. Inventory consumption is constant at 1200 needles per day and lead time for new needles is constant at five days. If the manufacturer wishes to maintain a safety stock of 600 needles, what should its reorder point be? OA. 5000 OB. 5400 F2 OC. 4800 OD.7200 OE. 6600 OF. 6000 #3 A Moving to another question will save this response. 80 E F3 $ 4 DOD OOD F4 R % 5 F5 T A 6 MacBook Air Y & 7 ◄◄ F7 U * 8 ► 11 F8 ( 9 F9 O ) 0 F10 >> (4) F11 + 11 F12 # 2 dele
Abey Kuruvilla, of Parkside Plumbing, uses 1,350 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).
The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Meow, Inc. for an operating period. Units Unit Total Units Cost Cost Sold Beginning Inventory 50 $62 $3,100 Sale No. 1 40 Purchase No. 1 30 50 1,500 Sale No. 2 32 Purchase No. 2 40 44 1,760 Totals 120 $6,360 72 Assuming Meow, Inc. uses LIFO perpetual inventory procedures, the ending inventory cost is:
Consider the basic EOQ model. Annual holding cost (AHC) is $2,400. Optimal cycle time (time between orders, T*) is 3 months. Find ordering cost per order (S). $400 per order $600 per order $2,400 per order Cannot be calculated $9,600 per order
The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery,which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies perday. The bakery sets up the pie production operation and produces until a predetermined number(Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facilitiesfor producing other bakery items. The setup cost for a production run of fruit pies is $500.The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozenfruit pies, which is constant over time, is 5,000 pies. Determine The optimal number of production runs per year
A plastic canister manufacturing company maintains an annual safety stock of 500 units of plastic caps. If the company places an annual purchase order for 1,800 units of these caps, its average annual inventory, in units, is between: ( )1,500 and 1,300 ( )3,200 and 3,000 ( )2,400 and 2,200 ( )1,200 and 1,000 ( )1,900 and 1,700
In the basic EOQ model, if annual demand doubles, the EOQ will O a. increase by about 41.42 percent O b. decrease by 48.42% O c. double O d. None of these O e. be about 70.7 percent of its previous amount
Originally I got 96, but I don't believe that is right. Please help! tysm :)
Which of the following statements about the basic EOQ model is Ture? If the holding cost were to increase, the EOQ would reduce. If the ordering cost were to decrease, the EOQ would increase. If annual demand were to double, the EOQ would also double. If annual demand were to increase, the EOQ would reduce.
A demand driven model will likely lead to higher inventory levels due to safety stock. True False
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)

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