Central University has a demand level of 80 units per day, for a particular toner cartridge in the student computer labs each year. The costof each unit is 10.95. The purchasing director of the university estimates the ordering cost at $45 and thinks that the university can holdthis type of inventory at an annual storage cost of 22%. Operating days are 250. The lead time is for orders to arrive is four days.a. To minimize the total annual cost of purchasing and carrying how many toner cartridges should be ordered?[Select]b. What are the numbers of orders that need to be placed? [Select]c. What is the total cost of managing the inventory? $ [Select]d. What are the number of days in between orders? [Select]e. What is the re-order point? [Select]f. What is the total cost, including the cost of the cartridges? $ [Select]

As per bartleby guideline, expert can solve only three subparts of the question. Daily demand = 80…

Answered: Central University has a demand level…

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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Similar questions

Ordering Costs are associated with keeping stock over time. Select one: True False
A product is produced in batches. Batch size = 2000 units. Annual demand = 50,000 units, and unit cost of the product = $4.00. Setup time to run a batch = 2.5 hr, cost of downtime on the affected equipment is figured at $250/hr, and annual holding cost rate = 30%. What would the annual savings be if the product were produced in the economic order quantity?
A company has a chance to reduce their inventory ordering costs by placing larger quantity orders using the discount schedule below. What should their optimal order quantity be if this company purchases this single inventory item with an e-mail ordering cost of $4, an annual holding cost rate (per unit) of 2% of the price/unit, and an annual demand of 10,000 units? Order quantity (units) Price/unit ($) 0 to 2,499 1.20 2,500 to 3,999 1.00 4,000 or more 0.98
In a hardware warehouse, the independent demand for a commonly used bolt is 500 units per month. The ordering cost is $30 per order placed. The carrying cost is 25 percent per year, and each unit costs $.50.a. According to the EOQ formula, what lot size should this product have?b. How often should this product be purchased?c. A quality team has found a way to reduce ordering costs to $5. How will that change the lot size and the frequency of purchasing for this product?
During the last 5 weeks, demands for a certain SKU at a retailer were 7 units (5 weeks ago), 4 units, 4 units, 4 units, and 5 units (last week). The retailer uses a period review model with order-up-to level 71 units, a review period of 2 weeks, and the lead time is 11 weeks. It is time to order. How much should the retailer order?
ABC Inc. orders components for distribution at a monthly demand of 900 units. Holding costs are 15% of the unit cost of $23.75. The ordering cost is $47.35. The company operates 240 days per year a. If the company wishes to effectively procure these components, what would be the optional amount to order? [Select] b.. What is the average inventory? [Select] c. How many order cycles are there per year? [Select] d. What are the total cost of managing the inventory? $ [Select] e. What is the total cost, including the cost of the inventory? [Select ] f. What is ABC Inc. decided to order 600 components, what impact would it have on holding costs? [Select] >
Abey Kuruvilla, of Parkside Plumbing, uses 1,250 of a certain spare part that costs $26 for each order, with an annual holding cost of $27. a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). b) What is the economic order quantity? units (round your response to two decimal places).
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 3,000 rolls. The cost per roll is $1,000, and the annual holding cost is 28 percent of the cost. Each order costs $75. Part 2 a. How many rolls should Yellow Press order at a time? Yellow Press should order enter your response here rolls at a time. (Enter your response rounded to the nearest whole number.) Part 3 b. What is the time between orders? (Assume 200 workdays per year.) The time between orders is enter your response here days. (Enter your response rounded to one decimal place.)
William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number). Demand D Ordering cost S Holding cost H 19,300 units/year $24/order $4/unit/year
Palin’s Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to answer the below questions. Annual demand 3,000 mufflers Standard deviation of daily demand 6 mufflers per working day Item cost $30 per muffler Annual holding cost 25% of item value Review period 15 working days Ordering cost $50 per order Service probability 90% Lead time 2 working days Working days 300 per year What is the optimal target level (order-up-to level)? Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number. If the service probability requirement is 95 percent, the optimal target level will: multiple choice Increase Decrease Stay the same
Consider a continuous review inventory system. Demand is normally distributed with an average of 28,000 per month and a monthly standard deviation of 4900 units. Lead time is 3 weeks (assume four weeks per month) (round Z-values, standard deviations to two decimal places). If the firm desires a(n) 90% cycle service level, it should hold enter your response here units of safety stock (round your response to the nearest integer).
Ross White’s machine shop uses 2500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or10% of the unit cost) and the ordering cost is $18.75. There are 250 working days per year. Upon hearing that Ross White is considering the producing the brackets in-house, the supplier has notified Ross that the purchase price would drop from $15 per bracket to $14.50 per bracket if Ross purchase the brackets in lots of 1000. After analyzing the cost of the various options for obtaining the brackets, Ross White recognizes that although he knows the lead time is 2 days, the average daily demand usually varies. Ross has kept careful records and has determined that the average daily demand is normally distributed with a standard deviation of 2.5 units. If Ross would like to maintain a service level of 90 %,…

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