PROBLEM TWO:Consider the following data about one type of raw materials. Illustrate your answer witha graph.a- daily demand 40 units.b-annual carrying cost per unit 10% of the cost.C- ordering cost $80.d-working days 300 days per year.e- lead time 10 days.f-cost of the item is $2Calculate the following:1. EOQ2. ROP3. Numbers of order per year4. Total Cost

Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Answered: Calculate the following: 1. EOQ 2. ROP…

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...

See similar textbooks

Similar questions

Question 1 (Stock Control) - : Suyuti Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Suyuti's generator production operation, which is operated at a constant rate, will require 1000 components per month throughout the year (12 000 units annually). Assume that the ordering costs are GH¢25 per order, the unit cost is GH¢2.50 per component and annual holding costs are 20 per cent of the value of the inventory. Suyuti has 250 working days per year and a lead time of five days. Answer the following inventory policy questions. a. What is the EOQ for this component? b. What is the reorder point? c. What is the cycle time? d. What are the total annual holding and ordering costs associated with your recommended EOQ?
Ankit
Q4: Suppose that the demand for a product is 400 per year, and the items are withdrawn uniformly. The order cost is $25 and the inventory holding cost is $0.5 per item per year. If shortages cost $1 per item per year, find: 1. The economic order quantity. 2. Maximum inventory. 3.Shortage allowable quantity.
Here it’s the answers I just need an explanation of how did you get that number.
I) annual usage - 1151 pcs Placement cost - 91 Rupees Storage cost - 8 Rupees Compute the reorder quantity/ EOQ ?
If no safety stock is required, what would the re-order point be?
Question 7 Firm develop new products to a.gain market share and build brand equity b.keep their research and development teams gainfully employed c.take up slack in capacity d.gain first mover advantage and eliminate waste Question 8 Economic order quantity (EOQ) assumes all of the following conditions apply .demand is known and is constant over time .there are no shortages allowed.lead time for the receipt of orders is constant.Order quantity is received all at once true or false? question 10 Trade-offs in the new product development relate to A.Product / service design, time to market and profitability B.Proft. Expenditure and market share C.Time. cost and quality D.Market reach, product / service design and timing
3. a) Calculate the Lot size for Zara production clothes. D d р Q H S = = 11 Annual demand = 400,000 units Daily demand = 400,000/250= 1,600 per day Daily production rate = 4,000 units EOQ desired = 400 = Holding cost $20 per unit Setup cost (to be determined) = b) Determine optimal number of needles to order. D = 1,000 units S = $10 per order H = $.50 per unit per year c) Determine expected number of orders. d) Determine the total annual cost.
Question 8 What of the following best describes just-in-time inventory management? A firm minimises the time lags present in the supply chain by maintaining a certain amount of inventory to use in these lag times Inventory is maintained as a buffer to meet uncertainties in demand, supply, and movements of goods Production inefficiencies arising when production capacity stands idle for lack of materials are minimised by holding a small stock of essentials at all times A firm acquires inventory precisely when needed so that its inventory balance is always at, or close to, zero
Demand = 1570 per quarter, T (Inventory period) = 5.4 months, Lead Time - 3.9 weeks, safety stock- 15. Q11.1. What is the inventory period (ROP, Q)?
Q4/ Company produced 1000 pieces of air conditioners per year, the order cost is 6000$, the shortage cost is 10% of order cost and the inventory holding cost is one dollars per item per year. Find 1. number of ordering during the year. 2. The interval between two orders. 3. The annual cost. 4. maximum inventory 5. shortage allowable quantity
Given: Demand = 1248 items per year, Inventory period or Time between orders = 13 weeks. Q5.1. Calculate Lot Size or Order Quantity

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS

Calculate the following: 1. EOQ 2. ROP 3. Numbers of order per year Total Cost