QUESTION 15ID-planned order release using EOQ techniqueClancy's Motors has the following demand to meet for custom manufactured fuel injector parts. The holding cost for that item is $2per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: the EOQ techniqueincluding the holding cost of any inventory left over after month 7?MonthRequirement1400What is the total cost?201625091405153621503200150100 150250

Answered: ID-planned order release using EOQ…

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

Similar questions

A museum of natural history is having problems managing their inventories. Low inventory turnover is squeezing profit margins and causing cash-flow problems. A Class A item, a birdfeeder is also a top-selling item. See information for this item in the table below. Management has been ordering in lots of 390 units. 1) What is the annual cost of the current policy (hint: find the current total cost with the current order size, Q)? 2) What is the Economic Order Quantity or the optimum order quantity (EOQ) for the birdfeeders? 3) What is the total annual cost of ordering at the EOQ? How much could be saved if the museum ordered at the EOQ opposed to their current order size of 390 units? 4) When should the museum place an order, at how many units (i.e.: what is their reorder point or lead time demand)? Sales per week (demand) Purchase cost Order cost Annual holding cost Birdfeeder: Operating weeks per year Lead time for orders (weeks) Order size EOQ (calculated) 18 $ $ 60.00 45.00 25% of…
Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. d) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (99% service level)? e) If the carrying cost per year is $0.50/unit/year - what is the additional cost associate with the 99% service level compared to 95% service level (i.e. cost of safety stock at 99% level - cost of safety stock at 95% service level)?
Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The fo llowing information is known about the brackets: a) Given the information, what would be the economic order quantity (EOQ)?b) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost?c) Given the EOQ, how many orders would be made each year? What would be the annual order cost?d) Given the EOQ, what is the total annual cost of managing the inventory?e) What is the time between orders?f) What is the reorder point (ROP)?
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).
f2 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. Assume 50 weeks in a year. Given the problem parameters, what is the optimal order quantity the retailer should order? Numeric Response f3 2040 f4 f5 40 f6 0 4- f7 ♫+ f11 W f12. X insert prt sc + = O delete ← backspace home num lock
2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order.
Best Buy's monthly demand for an Olympus Digital Camera FX 5500 is Poisson distributed with a mean of 3 cameras/month. The order quantity is 6 cameras, holding costs are $6.00 per camera per year, the backorder cost per outage is $12.00/unit, and the lead-time is 1 month. Determine the safety stock. 00 01 02 03 O4
K Cesar Rego Computers, a Mississippi chain of computer hardware and software retail outlets, supplies both educational and commercial customers with memory and storage devices. It currently faces the following ordering decision relating to purchases of disks: D S I Purchase price Discount price Quantity needed to qualify for the discount = 5,900 disks. What is the EOQ? 36,100 disks $25 22% $0.87 $0.81 EOQ = units (round your response to the nearest whole number). ncorrect
snip
1. What is the economic order quantity for BBE in units? In pounds? 4.What is the total cost for using air carrier transportation?
Q4/ Company produced 1000 pieces of air conditioners per year, the order cost is 6000$, the shortage cost is 10% of order cost and the inventory holding cost is one dollars per item per year. Find 1. number of ordering during the year. 2. The interval between two orders. 3. The annual cost. 4. maximum inventory 5. shortage allowable quantity
pls show detailed computation need help

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS