An office supply store open five days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearlyconstant at 210 boxes. When orders are placed, the entire shipment arrives at once. The cost per box is $29, and the inventory holding costis 33%. Orders are placed at a cost of $43 each, including preparation time and communication charges, and the lead time is two days. (Assumethe store operates 52 weeks per year.)(a) Find the optimal order quantity. (Round your answer to the nearest whole number.)(b) What is the total annual cost (in dollars)? (Round your answer to two decimal places.)$(c) What is the reorder point?(d) What is the cycle time (in days)? (Round your answer to two decimal places.)days

Find the given details below:Find the Calculations below:Find the answers below:a) 313b) 319677.90 (Including purchase cost)2997.90 (Excluding purchase cost)c) 84d) 7.46 days

Answered: An office supply store open five days a…

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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A produce distributor uses 720 packing crates a month, which it purchases at a cost of $10 each. The manager has assigned an annual carrying cost of 35 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) Savings$ ____per year
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The Office Supply Shop estimates that the average demand for a popular ball-point pen is 12,000 pens perweek with a standard deviation of 3,000 pens. The current inventory policy calls for replenishment orders of156,000 pens. The average lead time from the distributor is 5 weeks, with a standard deviation of 2 weeks. Ifmanagement wants a 95 percent cycle-service level, what should the reorder point be?
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EOQ, reorder point, and safety stock Alexis Company uses 937units of a product per year on a continuous basis. The product has a fixed cost of $44 per order, and its carrying cost is $4 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate daily usage.) c. Determine the reorder point. d. Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity.
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