Answer:1. What is the economic order quantity? Q=_7 (round to nearest whole number)2. If average demand during lead time is normally distributed with a standard deviation of 2.5 bicycles, what is the reorder pointwith the desired service level?Safety stock =8 bicycles9 bicycles (round both to nearest whole number)3. What is the total annual inventory cost including safety stock? $___10 (round to nearest dollar)4. If SBC is currently ordering 100 bicycles at a time, how much is the company overpaying in total inventory cost?$___11 (round to nearest dollar)5. Each year during their anniversary celebration, SBC offers a collectable water bottle at the special price of $5. They typically sell100 bottles with a standard deviation of 12 bottles. The cost of each bottle is $1.50, and any unsold inventory is donated to a localcharity. What is the service level and optimal order quantity for the water bottles?Service level =% 12Optimal order quantity=_6. What is the Dragonfly's ADV (round to nearest 1 decimal)? If SBC's total inventory based on ADV is $275,000, what percent of thetotal inventory based on ADV does the Dragonfly represent? (nearest whole percent) 14ROP =_137. If SBC's COGS on its income statement is $412,500 and its balance sheet lists inventory at $83,600, what is its IT? If the industryaverage is 8 weeks of supply, how does SBC compare (better or worse)? 15 PART ASpeedy Bicycle Company (SBC) is a wholesale distributor of a wide variety of bicycles and bicycle parts. The most popular model isthe Dragonfly, which sells for $170. All manufacturing is done at a plant in China, and shipment takes a month (30 days) from thetime an order is placed. The estimated order cost is $75, including customs clearance. SBC's cost per bicycle is 65% of retail price,and inventory carrying cost is 11% per year of SBC's cost. If the company cannot fulfill a retail order, the retailer will get theshipment from another distributor and SBC loses that business. SBC is planning inventory for 2023 based on forecasted demand andwants to maintain a 93% service level to minimize lost orders. The company has 300 working days per year.2021 Forecasted Demand for the Dragonfly Bicycle Model:FAJ1558J8M31M96J5938A23S16014N26D41

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Answered: Answer: 1. What is the economic order…

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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Current decision to buy: Ross White's machine shop uses 300 brackets each month during the course of a year. This usage is relatively constant throughout the year. Currently, these brackets are purchased from a supplier 100 miles away for $25 each and the lead time is 2 days. The holding cost per bracket per year is $3.75 (15% of the unit cost) and the annual ordering cost per order is $18.50. There are 240 working days per year. Possible future decision to make in-house: Ross White is reconsidering his decision of buying the brackets and is considering making the brackets in-house. He has determined the set up costs would be $22.50 in machinist time and lost production time. Forty eight brackets could be produced in a day once the machine has been set up. Ross estimates that the cost (including labor and materials) of producing one bracket would be $22.85. The holding cost would be 12% of the cost. What is the EOQ given Ross' current decision to buy the brackets? What is the…
Economic Order QuantityA pipe manufacturer requires a chemical for making plastic at the rate of 6000gallons per year. The cost of keeping the chemical storage is $10 per gallon peryear. Ordering costs are $200 per order. The chemical is bought at $45 pergallon.What is the EOQ and the Annual Total Cost?
Please show work so I can understand it. Given this information: •Expected demand during lead time = 800 units • Standard deviation of lead time demand = 40 units Assuming that lead time demand is distributed normally. The risk of stockout is 5 percent during lead time (a) What amount of safety stock is appropriate? (b) Calculate ROP
explain the meaning of the numbers on the right-hand side of each of the constraints and the significance of the coefficients of the objective function and each of the constraints.
Mac-in-the-Box, Inc., sells computer equipment by mail andtelephone order. Mac sells 1,200 flat-bed scanners per year.Ordering cost is $300, and annual holding cost is 16 percentof the item’s price. The scanner manufacturer offers thefollowing price structure to Mac-in-the-Box: What order quantity minimizes total annual costs?
Discuss how inventory expenses must be balanced and kept to q minimum through inventory control
← 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? $ 1145 (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number).
the economic order quantity (see Chapter 12 for EOQformulas) for its halogen lamps. It currently buys all halogenlamps from Specialty Lighting Manufacturers in Atlanta. Annualdemand is 2,000 lamps, ordering cost per order is $30, and annualcarrying cost per lamp is $12.a) What is the EOQ?b) What are the total annual costs of holding and ordering(managing) this inventory?c) How many orders should D iscount-Mart place with SpecialtyLighting per year?
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Annual demand (D) is 49,000 units. Ordering Cost (S) is $1,000 per order. Holding cost (H) is $2 per unit per year. Find economic order quantity (Q*). 7,000 units 49,000,000 units 4,950 units 3,500 units 4,083 units

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