Dara runs a dolphin rescue where she cares for and rehabilitates injureddolphins. To cover her overhead she sells tickets to take pictures with thedolphins. These ticket sales cover costs that include feeding her dolphins.Dara knows that she needs to feed her Dolphins 150,000 fish per year. Inorder to get the correct fish for dolphin food she has an order lead time of7 days as well as a holding cost of fish of $20. On top of that Dara incursan annual ordering cost of $37. Calculate the order quantity that makesthe most financial sense for Dara (EOQ)Question 41 ptsPJ owns a PB&J business that sells pre packaged PB&J's as a grab andgo item at a food cart in New York City. PJ's demand for his sandwichesare 104 sandwiches per day and he operates 300 days each year. PJ alsoknows that his ordering cost per unit is $5 and his holding cost for eachunit is $10. Lastly his lead time is 4 days to get new sandwiches in.Calculate at what amount of sandwiches PJ should purchase that willmake the most financial sense. (Round your answer to the nearestwhole number)

Q 3) Given data, D Demand 150000 H Holding Cost 20 S Ordering cost 37

Answered: Dara runs a dolphin rescue where she…

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

Discuss considerations that should be fully taken into account when developing inventory related relevant costs for use in an economic order quantity (EOQ) model. Why do conflicts arise between the EOQ model's optimal order quantity and the order quantity that managers regard as optimal?
Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile tires. The yearly demand of a particular brand of time is about 8,888 units per year. JTP purchases these tires from a supplier. The ordering cost is $124 per order and the holding cost is $19 per tire per year. The supplier always deliver the shipment within 6 days after receiving a replenishment order from JTP. The company operates 250 days per year. Assume EOQ model is applicable. What is the optimal annual inventory cost for JTP? Use at least 4 decimal places.
SF, owner of the kebab houses, uses 20 pounds of mince each day in preparing meatball. Order costs for mince are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the mince itself costs $3.00 per pound. At what point should she reorder mince? Select one: 20 pounds remaining 60 pounds remaining 100 pounds remaining 80 pounds remaining 40 pounds remaining
Manipulation Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist of P10 for placing a long-distance call to make the order and P40 for delivering the order by truck to the company warehouse. Each Chip costs P100 and the carrying costs are estimated at 15.625% of the inventory cost. If the EOQ for Chip is 80 and the total ordering cost is P625. Compute for the Total Carrying Costs.
You have been asked by your boss to calculate the Economic Order Quantity (EOQ) for one of the major sub-components used by your firm. You have been provided the following data: The weekly demand for this part is 125 units. The cost of the sub-component is $300. The annual holding cost is 0.5% and the ordering or setup cost is $50.
Surge Electric uses 4,000 toggle switches a year. Switches are priced as follows: 1 to 499, 90cents each; 500 to 999, 85 cents each; and 1,000 or more, 80 cents each. It costs approximately$30 to prepare an order and receive it, and carrying costs are 40 percent of purchase price perunit on an annual basis. Determine the optimal order quantity and the total annual cost.
Tyler decided to open a bakery because everyone he knew told him that his baked goods were "out of this world." He had a little bit of a business school background because he got his Bachelor's from SPS at UIW recently. He remembered his teacher telling him that inventory models can be used for both the raw materials as well as the finished products for a business like his. So, he decided to see if he could use the basic EOQ model for identifying how much quantity to order of raw materials such as eggs, flour, sugar, etc. To get started, he decided to create a model for flour based on the information he had on hand regarding potential costs as follows: Usage per month 100 Ibs Purchase cost $1 per Ib. Order cost $10.00 per order sent Annual Holding Rate 10% of purchase price per Ib. • 52-week year 300 working days per year • Lead time 2 days Fill in the following table based on this information: Optimal Inventory Policy Answer Type 7 Reorder Point r Ibs. 8 Number of Orders Per Year…
Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 25,000 units, a cost per order of $80, and a holding cost per unit per year of $16?
You are in charge of inventory control of a highly successful product retailed by your firm. Weekly demand for this item varies, with an average of 350 units and a standard deviation of 15 units. It is purchased from a wholesaler at a cost of $25.00 per unit. The supply lead time is 7 weeks. Placing an order costs $55.00, and the inventory carrying rate per year is 15 percent of the item's cost. Your firm operates 6 days per week, 50 weeks per year. Refer to the standard normal table The table below shows the total area under the normal curve for a point that is Z standard deviations to the right of the mean. Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.0 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359 0.1 0.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5754 0.2 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141…
Kabel Market store sells electric cable. The demand for cable is normally distributed. The inventory related information at Kabel Market is as follows: Average Annual Demand = 16,900 meters Standard deviation of weekly demand = 28 meters Cable selling price = AMD 640.00 per meter Ordering cost = AMD 1,250.00 per order Lead time = 5 weeks Annual inventory-holding cost estimate = 2.5% of the cable selling price Required service level = 95% Kabel Market works 52 weeks a year. Note: The approximate z values are: for 0.9 ≈ 1.28, for 0.92 ≈ 1.405, for 0.95 ≈ 1.645, for 0.98 ≈ 2.05. Suppose the bar management practices the fixed-QUANTITY ordering system with the use of the economic order quantity. Answer the following questions: (i) How many meters of cable they order from the supplier each time? (ii) When do they place an order? (iii) What is the safety stock?
KickBites Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It cost KickBites Manufacturing $40 to place an order, and the carrying cost is 25% of the unit cost. If pumps are ordered in quantities of between 200 and 250, KickBites Manufacturing can get a discount on the cost of the pumps. Should the company order 200 pumps or 250 pumps at a time and take the 3% discount? [Provide your answers in two decimal points]
Suppose you have been employed by Kam Steels Corporation as a financial manager. You want to change old inventory ordering system to the just-in-time inventory method. The shareholders and the CEO of the firm would like to know how the new would operate and the benefits and disadvantages of the just-in-time inventory method. By providing a high-quality argument, please explain how the new would operate and its benefits and disadvantages to the shareholders and the CEO of the firm.

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