Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 800 valves; order cost is $7 per order; and annual inventory holding costs are $2.15per unit.DVendor Aunits at a time fromVendor CVendor BQuantity1-1415-2425-99100-199200-399400+Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost?Chris Sandvig Irrigation should order(enter your response as a whole number).Vendor APrice$35.0034.7533.5532.3531.1530.75Vendor DVendor BQuantity1-2425-99100-199200-399400+Price$34.7534.0032.8031.6030.50Vendor CQuantity1-4950-149150-299300+Price$34.5033.7532.5031.10Vendor DQuantity1-149150-299300+Price$34.2533.0031.00

Given data is Annual demand (D) = 800 valves Holding cost (H) = $7 per order Order cost (S) = $2.15…

Answered: Chris Sandvig Irrigation, Inc., has…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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b) Zamry Stationary Sdn Bhd purchases pens from a supplier from Segamat. The supplier selling price to the bookstore is at RM2.00 per unit. The cost for the bookstore to place an order is at RM23 and the inventory/ carrying cost is RM0.10/unit/month. The manager estimates that the daily sales will be 134 units and the store open for 240 days in a year. The lead time from the time of order placement until receipt is 3 days. Based on the information below, calculate the following: i. The optimal order quantity (EOQ) ii. The numbers of orders iii. The time between orders iv. V. vi. vii. The inventory level at which the new order should be made The total annual holding cost The total annual setup cost The total annual cost
None
Which of the following combinations would result inneeding to utilize the largest number of suppliers?a) a high value of S and high value of Ub) a high value of S and low value of Uc) a low value of S and high value of Ud) a low value of S and low value of U
12.27 Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the accompanying table. Annual usage is 2,400 valves; order cost is $10 per order; and annual inventory holding costs are $3.33 per unit. Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost? PX VENDOR A QUANTITY 1-49 50-74 75-149 150-299 300-499 500+ VENDOR C QUANTITY 1-99 100-199 200-399 400+ PRICE $35.00 34.75 33.55 32.35 31.15 30.75 PRICE $34.50 33.75 32.50 31.10 VENDOR B QUANTITY 1-74 75-149 150-299 300-499 500+ PRICE $34.75 34.00 32.80 31.60 30.50 VENDOR D QUANTITY 1-199 200-399 400+ PRICE $34.25 33.00 31.00
Continuous review policy should be conducted for items in class A only since they have higher shortage and holding costs True or False?
Competitive Dimensions include I. Delivery Reliability II. Location III. Brand IV. Quality V. Price Option I and III Option I and IV Option I, IV and V Option II and IV
Chris Sandvig Irrigation, Inc., has summarized theprice list from four potential suppliers of an underground controlvalve. See the accompanying table on the next page. Annual usageis 2,400 valves; order cost is $10 per order; and annual inventory holding costs are $3 .33 per unit.Which vendor should be selected and what order quantity isbest if Sandvig Irrigation wants to minimize total cost?
Alvarez Incorporated can purchase component X from 3 potential suppliers. Supplier A charges a fee of $6.50 per component. Supplier B charges $2100 per order plus $2.50 per component ordered. Supplier C charges $4.00 per component, and requires the buyer to pay for at least 300 components (even if the order size is less than 300). 4. What is the full range of order sizes where each supplier is optimal? 5. Alvarez decided to buy 1000 units of component X from supplier B. How much money could the company have saved if it purchased the 1000 units from supplier C instead of supplier B? 6. Next week supplier B will be running a 18% off special. What equation represents the new Total Cost for supplier B during the sale? Hint: plug the same number of units into both the new and the original Total Cost equations. The new equation should provide a value that is 18% less than the original.
PHL Manufacturing assembles security monitors. It purchases 900 black-and-white cathode ray tubes per month at $80 each. Ordering costs are $30, and annual carrying costs are 25 percent of the purchase price. - a) Determine the optimal quantity (4 points) - b) Find the total annual cost of ordering and carrying the inventory (2 points) - c) If the supplier offer a price of $79 per tube for ordering 1200 tubes in a lot, would you evaluate and advise PHL to take advantage of the offer?
To calculate accurate and profitable price per portion, the Ocean View Caté performs butcher tests on the pan-tried chicken. A portion of chicken served is Boz, and the butcher test revealed that the portion cost factor is 75. The new supplier's price is $3.00 per Ib. of chicken. What should the cost of the 6oz portion be? Select one: a. $5.25 b. $2.63 c. $13.50 O d. $2.25
Asia Furnishing is a retailer of modular toilet products. Currently, the lead time for one of the products, the toilet door, is relatively high, at 5 weeks. The average demand for toilet doors is 200 per week. The standard deviation of demand during the lead time is 85 doors. The store plans to provide a service level of 99 per cent. (a) The store is looking for another supplier who can supply the doors in one week at the same price. Analyse how much safety stock can be reduced by moving to the new supplier without reducing the 99 per cent cycle-service level. (b) The store hired a new manager who insists on using a probability distribution for the lead time of supply, instead of a fixed lead time. Based on the historical data from the present supplier, she estimated that the standard deviation of lead time is 1 week. How will the amount of safety stock change after including this information? What should be the reorder level for the store? Do state all…
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