ABC Inc. orders components for distribution at a monthly demand of 900 units. Holding costs are 15% of the unit cost of $23.75. Theordering cost is $47.35. The company operates 240 days per yeara. If the company wishes to effectively procure these components, what would be the optional amount to order?[Select]b.. What is the average inventory? [Select]c. How many order cycles are there per year? [Select]d. What are the total cost of managing the inventory? $ [Select]e. What is the total cost, including the cost of the inventory? [Select ]f. What is ABC Inc. decided to order 600 components, what impact would it have on holding costs? [Select]>

As per guidelines, we are supposed to answer only three subparts if multiples of subparts are asked.

Answered: ABC Inc. orders components for…

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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B). As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 679 units. Ordering costs are $7 each time an order is placed, and the holding cost is 10% of the unit cost. Your supplier provided the following price schedule. Quantity Price per Unit 1 - 100 $5.65 101 - 350 $4.95 351 or more $4.55 What ordering-quantity policy do you recommend?
Give typed full explanation
When a retailer places large order of inventory: a. Ordering costs reduces and holding costs increases b. Ordering costs reduces and holding costs decreases c. Ordering costs increases and holding costs increases d. Ordering costs increases and holding costs decreases
Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand rate of 3,600 cases. A case of the soft drink costs R&B $4. Ordering costs are $22 per order and holding costs are 23% of the value of the inventory. R&B has 250 working days per year, and the lead time is 5 days. Identify the following aspects of the inventory policy: a. Economic order quantity. If required, round your answer to two decimal places.Q = b. Reorder point. If required, round your answer to the nearest whole number.r =c. Cycle time. If required, round your answer to two decimal places.T = daysd. Total annual cost. If required, round your answer to two decimal places.TC = $
Inventory holding costs include which of the following? a. Physical warehousing charges b. Financial carrying charges c. The cost of building storage space (e.g., warehouses) d. All of the above e. Only a and b
Cheryl Druehl has asked you to help her determinethe best ordering policy for a new product. The demand for thenew product has been forecasted to be about I ,000 units annually.To help you get a handle on the carrying and ordering costs,Cheryl has given you the list of last year's costs. She thought thatthese costs might be appropriate for the new product. She also told you that these data were compiled for 10,000 inventoryitems that were carried or held during the year. You havealso determined that 200 orders were placed last year. Your job as a new opera tions management graduate is to help Cheryl determinethe economic order quantity for the new product.
21- Which one of the following represent FIFO method of inventory evaluation? a. Old items remain in inventory b. Old merchandise is sold first c. New merchandise is sold first d. Average number of goods are sold
Please do not give solution in image formate thanku. Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 300 per day, and it uses these subcomponents at a rate of 12,500 per year (of 250 working days). Holding costs are $22 per item per year, and ordering costs are $32 per order. a) What is the economic production quantity b) how many production runs will be made each year c) what is the max inventory level d) what percentage of time will the facility be producing components e) what is the annual cost of ordering and holding inventory
Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas's fastest-moving inventory item has a demand of 5,900 units per year. The cost of each unit is $101, and the inventory carrying cost is $11 per unit per year. The average ordering cost is $31 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 118 units. (This is a corporate operation, and there are 250 working days per year). a) What is the EOQ? units (round your response to two decimal places). b) What is the average inventory if the EOQ is used? c) What is the optimal number of orders per year? d) What is the optimal number of days in between any two orders? decimal places). units (round your response to two decimal places). orders (round your response to two decimal places). days (round your response to two e) What is the annual cost of ordering and holding inventory? $ decimal places). per year (round your…
The purpose of EQQ is: A. measure the cost of ordering inventory B. to lower the level of inventory C. to determine the optimal amount of inventory to order D. to find the number of days before inventory needs to be reordered
Recognize the important relationship between inventory management and delivering the perfectcustomer order
Define each of the following in your own words and as a formula:a. Annual ordering cost.b. Annual carrying cost.c. Total annual cost.

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