A manufacturer capacity is equal to 60products per work day. The annual demandreaches 11,520 units per year. Themanufacturer operates 6 days per weekand 48 weeks per year. The cost to switchthe production line from one type ofproduct to the other is $50,000. It costs$1,000 to store on product for one year.a. What is the economic lot size?b. What is the total annual cost?Production Course.

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Answered: a. What is the economic lot size? b.…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Reactions and additional comments: Per the textbook definition, the term bullwhip effect “Describes the distortions in a supply chain caused by changes in customer demand, resulting in large swings in inventory levels as the orders ripple upstream from the retailer to the distributor and manufacturer” (Wallace, 2020, p. 137). The term is derived from physics. When cracking a whip, someone just has to snap their wrist and it causes a wave like effect that increases with a chain reaction. The bullwhip effect is a term that was first used in the 1990s. The makers of Pampers had many changes in order volumes, when usually diapers were bought at a constant rate (The Bullwhip effect : History and solutions, 2021). This caused the company to receive hard hits in demand with each new order from the retailers. For example, during the Covid-19 pandemic, everyone was told to stay home, go to school from home, and work from home. This caused the need for many more computers and electronic…
2. Perform an ABC analysis for the data provided. Clearly explain why you classified items as A, B, or C. Annual Unit Item Usage 2400 Cost $19.51 $32.60 $10.20 $6.80 2 6200 3 8500 4 3200 6000 $4.50 $55.70 $3.60 $44.90 $35.62 750 7 8200 8 9000 5800 10 820 $82.60 $40.50 11 500 12 2000 $15.40 $14.60 $35.80 13 2400 14 6300 15 4750 $17.30 2700 $51.75 $42.90 $25.30 16 17 1600 18 1350 19 5000 $67.00 20 1000 $125.00
1. a) Zoey Enterprises manufactures solar engines for helicopters. Given the fuel savings available, new orders for 125 units have been made by customers requesting credit. The variable cost is $11,400 per unit, and the credit price is $13,000 each. Credit is extended for one period. The required return is 1.9 percent per period. If Zoey Enterprises extends credit, it expects that 30 percent of the customers will be repeat customers and place the same order every period forever, and the remaining customers will place one-time orders. Should credit be extended? 2. b) Now, assume that the probability of default is 15 percent. Should the orders be filled now? Assume the number of repeat customers is affected by the defaults. In other words, 30 percent of the customers who do not default are expected to be repeat customers.
If D = I ,000 per year, S = $62.50 per order, andH = $.50 per unit per yea r, what is the economic order quantityfor purchasing manager Soomin Park?
A Maintains a particular gym. 55% on a gross murgain of all it's training products. In April the gym had a beginning inventory of 142, 000 net Purchases of 202,000 and net sales of 433,000, to estimate Use grass profit method Cost (in #1) of ending inventory?
1. can you describe push inventory system that are called “push system?” is one system better than the other, in your view do you think all industries have a choice in where they can use a push system or a pull system?
Demand = 1570 per quarter, T (Inventory period) = 5.4 months, Lead Time - 3.9 weeks, safety stock- 15. Q11.1. What is the inventory period (ROP, Q)?
SLO 1.3 Supplier managed inventories works best for: A) Production materialB) Direct materialC) A itemsD) MRO suppliesE) B items SLO-2.1 Despite the increased use of JIT systems, there are several benefits or advantages to having inventory, they include: A) Make possible smooth and efficient operations by decoupling individual segments of the total operationB) Inventories of parts and components produced in-house facilitates economical production runs in various machine-assembly stationsC) Provides “safety” stock for supply interruptionsD) Finished goods inventory help the marketing/sales department satisfy unexpected customer demand to avoid stockoutsE) All of the above
Given: Demand = 1248 items per year, Inventory period or Time between orders = 13 weeks. Q5.1. Calculate Lot Size or Order Quantity

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a. What is the economic lot size? b. What is the total annual cost?