Arrange a plan to order from the supplier using Part PeriodBalancing and Least Unit Cost method based on the data. Ordering lead time of the components is 1 period.Calculate the total cost of each method. A manufacturing system faces dynamic demand, which results in lumpy demand for acomponent in a product, which is as follows:PeriodDemand13022035041050640760830925Information from warehouse, there is an initial stock 60 components and the componentsafety stock is 10 units. Ordering cost of the component is IDR. 5000,- while the carryingcost is IDR. 150,- per unit per period. The unit purchase price is IDR. 7000,- and there isan offer from supplier a unit purchase price discount at IDR. 200,- if the order quantity ismore than 100 units. Arrange a plan to order from the supplier using Part PeriodBalancing and Least Unit Cost method. Ordering lead time of the components is 1 period.Calculate the total cost of each method.

The Least Total Cost method is a dynamic lot sizing technique that calculates the order quantity by…

Answered: Calculate the total cost of each…

Business

Operations Management

Calculate the total cost of each method.

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

Related questions

Q: 1. a. Determine an A-B-C classification for these items: Item Unit Cost Annual Volume (00) $100 25…

A: Inventory management is the management in which products are stored, and sell in the market…

Q: opm please help ....

A: Inventory management is a critical aspect of supply chain management, playing a pivotal role in…

Q: Recognise the core elements of purchasing ERP systems and databases.

A: When an organization decides to acquire an Enterprise Resource Planning (ERP) system or a database,…

Q: SRU JIC nas a demand that is uted during the lead time, with a mean of 500 units and standard…

A: THE ANSWER IS AS BELOW:

Q: Develop a solution with PPB Lot-Sizing technique and calculate the total relevant costs for the…

A: Material Requirements Planning (MRP) is a production planning, scheduling, and inventory control…

Q: Draw an approximate bill-of-materials (BOM) for a kid’s toy of your choice following these…

A: Bill of Materials (BOM) for 35th Anniversary 14" Jollibee Plush Doll (Sings Jollibee Song, Does NOT…

Q: So, what precisely does finished-goods inventory serve?

A: Inventory of goods that have gone through entire process of manufacturing and have been turned into…

Q: Jays Sporting Goods is a chain of sporting goods stores found in 1948 and with locations throughout…

A: Top selling product of the company:fishingrod & reel combinationsFollowing inventory related…

Q: Find the planned order for all items.

A: Item A:Gross requirements: L4LScheduled receipts: OH=10Projected available balance: LT-1Net…

Q: Details Company B is a retailer of mobile phones in Australia that works 250 days in a year. The…

A: Formulas used here, EOQ = 2 × Annual Demand × Ordering CostHolding cost Total cost of purchase =…

Q: One unit of A is made of three units of B. one unit of C. and two units of D. B is composed of two…

Q: Develop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the…

A: Find the Calculation methods below:

Q: Feels Like 98 has is deciding between two suppliers (A and B) for purchasing bags of barley. The…

A: Demand(D)= 16,000 bags per yearCost per order(S) = $25Holding cost per unit per year(H) = 20%

Q: Best-Appliance makes high-powered industrial strength microwave oven and wants to create an MRP for…

A: Inventory management refers to the process of overseeing and controlling a company's inventory of…

Q: One unit of A is made of two units of B, three units of C. and two units of D. B is composed of one…

Q: Problem 9a: Jones Surgicenter uses 90,000 bags of IV solution annually. The optimal safety stock…

A: Given, Annual demand D = 90000 Order cost S = $15 Holding cost H = 20% of $1.5 = $0.3

Question

Arrange a plan to order from the supplier using Part Period Balancing and Least Unit Cost method based on the data. Ordering lead time of the components is 1 period. Calculate the total cost of each method.

A manufacturing system faces dynamic demand, which results in lumpy demand for a
component in a product, which is as follows:
Period
Demand
1
30
2
20
3
50
4
10
5
0
6
40
7
60
8
30
9
25
Information from warehouse, there is an initial stock 60 components and the component
safety stock is 10 units. Ordering cost of the component is IDR. 5000,- while the carrying
cost is IDR. 150,- per unit per period. The unit purchase price is IDR. 7000,- and there is
an offer from supplier a unit purchase price discount at IDR. 200,- if the order quantity is
more than 100 units. Arrange a plan to order from the supplier using Part Period
Balancing and Least Unit Cost method. Ordering lead time of the components is 1 period.
Calculate the total cost of each method.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Least Total Cost (LTC)

VIEW

Part Period Balancing (PPB)

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Inventory management and demand planning at Dell The computer company Dell has long been seen as one of the most agile businesses in the industry. The success of Dell is in large part due to its highly responsive supply chain, which is capable of building and delivering customized products in a matter of days with minimal inventory. Dell’s ability to operate a build-to-order strategy is based partly on the modular design of many of their products but more particularly on a very high level of synchronization with their suppliers. There is a high level of visibility across the Dell supply chain with suppliers receiving information on Dell’s order book every two hours. Ahead of this information, suppliers are provided with capacity forecasts from Dell to enable them to produce at a rate that is planned to match actual demand. Each of Dell’s factories is served from a ‘vendor hub’, operated by third- party logistics service providers, the purpose of which is to keep a buffer of inventory…
Describe the link between inventory levels and production schedule?
Dennis Sport World, a chain of sporting goods stores, sells 360,000 tennis balls per year. The tennis balls cost Dennis Sport World RM15 per dozen. Annual inventory carrying costs are 20 percent of inventory price. The cost of placing and receiving an order are RM72. Assume the inventory replenishment occurs virtually instantaneously. Based on recent experience, Dennis Sport World uses 7 days delivery time for planning purposes. (Assume 360 days in a year) TASKS a) Calculate the Economic Order Quantity. b) Calculate the number of orders to be placed. c) Calculate the total annual inventory costs. d) Determine the reorder point.
A hospital treating COVID patients needs to buy gloves, gowns, and masks for the health care professionals working at the facility. The hospital has two suppliers who can supply the items. The cost, and the maximum number of each item each supplier can provide is given below: Supplier A Supplier B Gloves (cost, max units) ($0.30/unit, 20,000) ($0.35/unit, 11,000) Gowns Masks ($2.00, ($2.50, 5000) 10,000) ($1.75, 7000) ($2.55, 9,500) The hospital immediately needs 30,000 units of gloves, 5500 units of gowns, and 12,500 masks. To account for the economies of scale in logistics, the Supplier A has a requirement of at least 25,000 units in the order, while Supplier B has a requirement of a minimum order size of 10,000 units and a maximum order size of 20,000. What is is the minimum total cost of order that the hospital needs to pay to the suppliers to get the items?
Develop an EOQ solution and calculate total relevant costs for the data in the preceding table.
Genchev Industries conducts an ABC analysis of its inventory and develops the following table from its findings. Item Annual Usage Unit Cost Dollar Usage 1 9,960 $43.20 $430,272 2 3,362 $22.80 $76,654 3 8,332 $9.90 $82,487 4 3,074 $22.30 $68,550 5 2,968 $8.40 $24,931 6 4,195 $25.00 $104,875 7 4,536 $19.20 $87,091 8 9,538 $65.60 $625,693 9 3,484 $3.20 $11,149 10 10,232 $5.70 $58,322 Which of these items is a C item? a. Item 8 b. Item 6 c. Item 5 d. Item 1
Explain the Purchasing Portfolio that is being used in KFC with a diagram
Define the term "inventory turn" and discuss why it is an important indicator of an organization’s profitability. Give an example of an item that would have a fast turn and a slow turn.
This question is based on the following information pertaining to material Pogi: Usage 50 – 100 lbs. per day Lead time 8 – 12 days Size of the order 600 lbs. No. of days in a year 340 What is the average stock level? A. 1,250 B. 1,200 C. 1,000 D. 9252. What is the maximum stock level? 2,500 2,000 1,400 1,2003. What is the minimum stock level? 450 800 850 1,000 4. What is the re-order level? 1,200 1,600 1,750 1,800
What lead time does the supplier’s scheduling and control system require?
Full steps
Explain the economic order quantity (EOQ) and its impact on cost of operations.