Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25.00 for each order, with an annual holding cost of $24.00.a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your response to the nearest whole number).b) What is the economic order quantity? units (round your response to the nearest whole number).Order Size25405060100Total Cost ($)

Understanding inventory levels and where they are located in warehouses is the aim of inventory…

Answered: Abey Kuruvilla, of Parkside Plumbing,…

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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Dunstreet's Department Store would like to develop an inventory ordering policy with a 90 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 4,300 per year. The store is open 365 days per year. Every four weeks (28 days) inventory is counted and a new order is placed. It takes 9 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 100 sheets on-hand. How many sheets should you order? (Use Excel's NORM.S.INV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole number.) Number of sheets
Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 405 units. Ordering cost is $46; holding cost is $5 per unit per year. a) To minimize the total cost, how many units should be ordered each time an order is placed? EOQ =? units (round your response to the nearest whole number).
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).
A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics: Demand (D) = 2,000 units/year, normally distributed Standard deviation of weekly demand = 3 units Ordering cost = $ 50 /order Holding cost (H) = $ 6.00/unit per year Desired service level = 90 % Lead time (L) = 5 weeks If the company uses a periodic review system, what should the review period (P) be (in weeks)? Pick the closest answer.
Please do not give solution in image format thanku What are order cycle costs if annual demand is 8,000 units, with the following order quantities and annual order cost is $97? a. Order quantity of 1,000 = b. Order quantity of 500 = C. Order qty of 8,000 =
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
The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is $64.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005? OA. $2050 O B. $1360 O C. $1697 O D. $825 O E. $1200
Using relevant eoq calculations Which order size would you recommend that the hospital use?
K William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 19,400 units/year Ordering cost S $27/order Holding cost H $5/unit/year a) The EOQ for the workbooks is 458 (round your response to the nearest whole number) b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number).
David's Delicatessen flies in Hebrew National salamis regularly to satisfy a growing demand for the salamis in Silicon Valley. The owner, David Gold, estimates that the demand for the salamis is pretty steady at 175 per month. The salamis cost Gold $1.85 each. The fixed cost of calling his brother in New York and having the salamis flown in is $200. It takes three weeks to receive an order. Gold's accountant, Irving Wu, recommendsan annual cost of capital of 22 percent, a cost of shelf space of 3 percent of the value of the item, and a cost of 2 percent of the value for taxes and insurance. How many salamis should Gold have on hand when he phones his brother to send another shipment?
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).
Sunrise Garden Center buys 425 bags of fertilizer per month for feeding and weeding lawns. The ordering cost is $15.00. Holding cost is $0.10 per bag per year. a. How many bags should Sunrise order at a time? Sunrise should order bags at a time. (Enter your response rounded to the nearest whole number.) b. What is the time between orders? The time between orders is months. (Enter your response rounded to one decimal place.)

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