C). Given the following data, calculate a level production plan,quarterly ending inventory, and average quarterly inventory. Ifinventory carrying costs are $6 per unit per quarter, what is theannual carrying cost? Opening and ending inventory are zero.Quarter 1 Quarter 2| Quarter 3 Quarter 4TotalsForecast Demand5000700085009500ProductionEnding InventoryAverage InventoryInventory CostIf the company always carries 100 units of safety stock, what is the annualcost of carrying it?D) Perform an ABC analysis on the following set of products.AnnualItemDemandUnit CostA211800$9B390100$90C003450$6D100400$100E70785$2,000F660250$320G473500$75Н921100$75

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Answered: C). Given the following data, calculate…

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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Use the information below for the following questions: Knights Corporation also needs to determine the proper reorder point and safety stock level. Annual Demand = 15000 gallons Lead Time = 15 days Standard deviation of lead time = 3 days Standard deviation of demand = 10 gallons Service Level = 96% (Z score of 1.75 or 1.76) Open days per year = 360 days 1. What is the reorder point? (keep two decimal places through your work, round your final answer up to the next highest whole number) 2.What is the safety stock? (keep two decimal places through your work, round your final answer up to the next highest whole number) 3. If the service level increased to 99% (Z score of 2.32 or 2.33), what would be the new safety stock? (keep two decimal places through your work, round your final answer up to the next highest whole number)
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
Suppose that an organization is engaged in the manufacturing and sales of a seasonal product. Based on a sales forecast of 1000, 500, 500, and 2000 per quarter, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $7 per unit per quarter, what is the annual cost of carrying inventory? Assume that the opening and ending inventories are zero. (With steps)
Joe Henry's machine shop uses 2,460 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,460 Holding cost per bracket per year $ 1.65 Order cost per order $20.00 Lead time 22 days Working days per year 250 a) What is the EOQ? b) What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? c) Given the EOQ, how many orders would be made each year? What would be the annual order cost? d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? e) What is the time between orders? f) What is the reorder point (ROP)?
1. A local producer of vegetables is deciding how much inventory to have to meet the next week's demand. Vegetable products are perishable with a shelf-life of a week. Based on the historical observations, the company expects the weekly demand to follow a normal distribution with mean 4500 pounds and standard deviation of 400 pounds. The price of the product is $14 per pound in the store, and it costs $6 to produce. If there are any leftovers, the company is required to dispose them safely to avoid any pollution. This process costs $0.5 per pound. Answer the following questions. a) What is the cost of overage per pound? b) What is the cost of underage per pound? c) What is the optimal order quantity?
A printing company anticipates using 40,000 reams of paper at a uniform rate over the next year. Each time they place an order for X units of reams of paper, it is charged a flat fee of $200. Carrying costs are $4 per unit per year. A. use the formula for Economic Order Quantity to find out how many reams of paper they should purchase in each order. B. how many orders should they place over the year?
Assuming Normal Distribution, what would the optimal (s,Q) policy be for the given parameters below? Given data: Demand daily has mu = 1768, sigma = 5.37, with a unit purchased cost is $15 (annual interest rate is 20%). The order cost is $50 with a back ordering cost of $25. The order lead time is 3 days.
Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Period 1 W N 3 Regular Time 30 35 40 Overtime 15 15 20 Initial inventory Regular-time cost per unit Overtime cost per unit Subcontract 10 10 10 Subcontract cost per unit Carrying cost per unit per month 20 units $100 $160 $250 $2 Demand Forecast 40 55 60 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $ (enter your response as a whole number).
Question 1 For supply item ABC, Andrews Company has been ordering 400 units per week. A new purchasing agent has been hired by the company who wants to start using the economic-order- quantity method and its supporting decision elements. She has gathered the following information: Annual demand in units Lead time, in days Ordering costs Insurance and handling costs Purchase price per unit Return on cash investment 20,800 5 $22 $7 $15 15% Required
As the Manager of Branson’s Department Store, you are responsible for ensuring that reorder quantities for the various items have been correctly established. You decide to test one item and choose product Z. A continuous review inventory policy has been used, so you examine this as well as other records and come up with the following data: Cost per unit $35 Holding cost 20 percent of unit cost Average daily demand 10 units Ordering cost $30 per order Standard deviation of daily demand 3 units Delivery lead time 4 days Because customers generally do not wait but go elsewhere, you decide on a service probability of 90 percent. Assume that Branson’s Department Store operates 320 days per year. [What is the annual demand (D)? Determine the optimal order quantity, Q*. Determine the reorder point (R) if demand is constant. Determine the reorder point (R) if demand is varies.
1. Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per week and a standard deviation of 5 gallons per week. The new manager desires a service level of 90 percent. Lead time is 8 days, and the dairy is open seven days a week. (Hint: Work in terms of weeks.) If the ROP model is used, what is the appropriate  safety stock level  to achieve the desired service level? Round to two decimal places. Answer: _________
Items purchased from a vendor cost $250 each, and the forecast for next year’s demand is 2,000 units. The optimal order size is 100. The firm operates 52 weeks next year and lead time is 3 weeks. It costs $5 every time an order is placed for more units, and the storage cost is $2 per unit per year. What is the number of orders per year? a.35 b.20 c.22 d.25 e.5

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