N7 4+5 pleaseFor a given product, the order placement cost is $5, the holdingcost per unit per year is $10, and annual demand is 1,600 units. Ifthe EOQ is used, please answer the following questions: (pleaseshow calculations to reach your answer)1. what's the economic order quantity?2. what's the total annual logistics costs?3. How many orders will be placed over the course of a year?4. How much time elapses between order placements?5. The purchasing manager has been negotiating with thesupplier, and the latter has agreed to the following terms: Lowerorder placement costs ($4 instead of $5) and higher holding costs($12 instead of $10). Do you think this a good deal? Why or whynot?

Given- Annual Demand = 1600 Units Ordering cost (S) = $5 Holding cost (H) = $10

Answered: For a given product, the order…

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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Question 3 Imagine a mining company, Deep Earth Extraction, operates a transportation system to move ore from its remote mine to a processing facility. The transport vehicle has a capacity of 220 tons of ore, and each trip costs the company R70,000 regardless of the amount of ore transported. Additional costs amount to R60 per ton of ore for loading, securement, and tracking expenses. a) If Deep Earth Extraction charges R450 per ton of ore transported, how many tons of ore does it need to transport per trip to break even? b) Surveys have revealed that the transport vehicles are, on average, carrying about 80% of their maximum capacity of ore. Considering this loading level and a rate of R450 per ton, what would be the profit or loss realized on each trip?
question 2 b Explain any FIVE (5) value-added services provided by a wholesaler distribution network. Linked your answers with upstream and downstream of the retail operation.
2
Question 3Explain the three strategies that are available for distribution of goods.
QUESTION 12 (Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the answer using the criterion of minimax regret? Alternatives Large Inventory Small Inventory Probability O A) -$2,000 O B) $130,000 O C) $0 O D) $20,000 O E) $153,400 Large Crowd $220,000 $90,000 .20 PROFIT ($) Average Crowd $50,000 $70,000 .50 Small Crowd -$2,000 -$5,000 .30
Q1. Hotel manager Mr. Smith and his resourceful assistant, John, run a 26-room hotel in a little town. A combination of Mr. Smith's friendly attitude and the absence of a respectable hotel in the nearby vicinity imply that Mr. Smith enjoys sufficient demand at his low fare of $159 per night. John notes that some customers will walk into the hotel requesting a room for that evening and they are willing to pay a high fare of $325 per night. John knows this demand is variable. (In reality, this demand is U(4,9)) He suggests some rooms should be kept unsold to the low-fare customers so that they can serve the high-fare customers. a) To maximize profits with John's plan, what is the booking limit that should be set for low fare customers? b) Mr Smith does not like the idea of John and says “we will sell to everyone who reserves in advance and ignore the walk-in demand." If Mr Smith has his way, what will be the hotel's expected revenue? C) John replies, "If you are going to forgo the…
Question 1 You are given the following information about a wooden crate that is being shipped to by truck to the city of New York. Rate = $6.00/pounds w/m, Weight = 200 pounds; Dimensions: Length = 30 inches, Width = 40 inches, Height = 36 inches How much will the shipper be charged? $1200.00 $150.00 $200.00 $1500.00
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v Question Completion Status: QUESTION 11 The accompanying table shows the demand and supply schedules for lobster. The U.S. government decides that the incomes of lobster farmers should be maintained at a level that allows them to survive. It therefore implements a price floor of $14 per pound by buying surplus lobster until the market price is $14 per pound. Quantity Demand (thousands of pounds) Quantity Supplied (thousands of pounds) Price of Lobster (per pound) $22 0. 360 20 20 320 18 40 280 16 60 240 14 80 200 12 100 160 10 120 120 8 140 80 6 160 40 4 180 Reference: Ref 2-1 Since lobster is an important source of protein and omega-3, the government decides to provide the surplus lobster it purchases to nursing homes at a price of only $12 per pound. Assume that nursing homes will buy any amount of lobsters available at this low price, but families of nursing home patients now reduce their purchases of lobsters at any price by 60 thousand pounds because their family members are…
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