BackgroundHomeCrest furniture is planning its production of outdoor dining sets over the next 4 Quarters.Production cost is $900 per a dining set in each quarter. The regular production capacity is 180 pereach quarter, but, if necessary, the unsatisfied demand at any given quarter can be covered withovertime production which will cost the company $400 more than the regular production.Moreover, at any quarter produced dining sets can be stored to be sold in the following quarters.Holding/storage cost and the demand for each quarter is provided in the following table.Q1160Q2Q3Q4DEMAND210230180HOLDING (STORAGE) COST ($)405045202. Obtain basic feasible solutions for the transportation model by using North-West cornermethod. Show only the last solution tableau, no need to provide all the steps.

The transportation model is a sort of network problem that is used to ship a commodity from a source…

Answered: Background HomeCrest furniture is…

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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The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of resin, what would be the average inventory level?
Pam runs a mail-order business for gym equipment. The annual demand for the TricoFlexers is 16,000. The annual holding cost per unit per yr is $2.50 and the cost to place an order is $50.There are 300 working days in a yr. What is the optimal order quantity?
Henrique Correa’s bakery prepares all its cakesbetween 4 a.m. and 6 a.m. so they will be fresh when customers arrive. Day-old cakes are virtually always sold, but at a50% discount off the regular $10 price. The cost of baking acake is $6, and demand is estimated to be normally distributed, with a mean of 25 and a standard deviation of 4. Whatis the optimal stocking level?
The economic order quantity of Geo Co. is determined to be 450 units and it sells its only product for P5 each. Every time the company orders, it incurs P50. Holding cost is P10. It takes 3 days to make and receive an order. How much sales should Geo Co. for this economic order quantity to be plausible? (Using 360 day per year)
a school consumes liquid detergent annually. see related info, below: D = 408 gallons per year S = $20 H = $15 per gallon range price 1 to 179 $40 180 to 249 37.25 250 or more 37.19 A. initial EOQ (common minimum) is _____ (round up) B. total cost (at initial EOQ) is ___ (2 decimals) C. overall optimal order quantity is ___ show solutions
Economic Order Quantity and Reorder PointFind the economic order quantity and the reorder point, givenAnnual demand ( D )= 1, 000 unitsAverage daily demand ( d¯ ) = 1, 000 ∕365ordering cost ( S ) = $5 per orde rHolding cost ( H ) = $1.25 per unit per yearLead time ( L ) = 5 daysCost per unit ( C ) =$12.50What quantity should be ordered?
3) The TCC Art Gallery prints a brochure for visitors to the senior art showcase it sponsors at thecollege. There are about 16000 visitors per year to this event (held year round). Holding costs for thebrochures are 25% and it costs $40 to place an order with the printer. The printer has offered thefollowing discount schedule:Category Order Size Unit Cost1 0 - 1499 $2.602 1500 - 2999 $2.303 3000 and over $1.90Answer the following questions in a text box in the worksheet.A) How many orders should be made?B) How many brochures should be printed at a time?C) Please copy these two numbers and include them on the executive summary (the first worksheet).
1. Gursoy Manufacturing Company originally estimated its annual demand for item XYZ as 8000 units per year at a unit cost of $10. The order cost is $30 and the holding cost per unit is $3 annually. Gursoy has discovered at the end of the year that annual demand is only 6000 units and holding cost per unit per year are closer to $4. The only good news is that Gursoy figured orders cost $25 to place instead of $30 each. Gursoy now wants to know the significance of these mistakes on last year's decisions. a) What was the combined effect of these errors on the economic order quantity for item XYZ? b) What was the individual effect of each error on item XYZ economic order quantity? c) What was the combined effect of these errors on the minimum total variable cost (fixed order cost and holding cost) of item XYZ for last year? d) What was the individual effects of each error in demand on the minimum total variable cost for last year?
1. Forrest and Dan make boxes of chocolates for which the demand is uncertain. Forrest says, "That's life." On the other hand, Dan believes that some demand patterns exist that could be useful for planning the purchase of sugar, chocolate, and shrimp. Forrest insists on placing a surprise chocolate-covered shrimp in some boxes so that "You never know what you'll get." Quarterly demand (in boxes of chocolates) for the last three years is shown in the table below: b. If the expected sales for chocolates are 14,400 cases for year 4, use the multiplicative seasonal method to prepare a forecast for each quarter of the year. (Round all intermediate calculations to two decimal places.) The first quarter forecast is what? boxes of chocolates. (Enter your response rounded to the nearest whole number.)
A mgr. must set up an invty system for two (2) new production items, P34 & P35. P34 can be ordered at any time, butP35 can only be ordered once every 4 weeks. The co. operates 50 weeks a year and the weekly usage rates for both itemsare normally distributed. The mgr. has gathered the following information about the items:Item P34 Item P35Average wkly demand 60 units 70 unitsStandard deviation 4 units per wk 5 units per wkUnit cost $15 $20Annual Holding cost 40% 40%Ordering cost $70 $30Lead time 2 weeks 2 weeksAcceptable stockout risk 5% 5%a) When should the manager reorder each item?b) Compute the order quantity for P34c) Compute the reorder point for P35 if 110 units are on hand at the time the order is placed
Womble Inc. has beginning inventory of $200 and an ending inventory of $400 for a given periodin which it purchased $13,400 worth of materials. What is the dollar amount of materials used inthis period?
United Airlines has an agreement to buy jet fuel from Exxon. The goal is to minimize total cost (i.e., ordering cost + holding cost). The annual demand for fuel is 201,000 barrels. Exxon charges United $3740 to process each order. United incurs a holding cost of $20 per barrel. When purchasing using the EOQ (from last question), what is the order cycle time (days between orders) for United? Note: round your answer to the nearest 1 decimal place. For example, answer like 12.3 Answer: Check

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