**M. Cotteleer Electronics Inventory Management Scenario**Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. One of the components has an annual demand of 260 units, and this demand is constant throughout the year. The carrying cost is estimated to be $1.00 per unit per year, while the ordering (setup) cost is $21 per order.**Questions:**a) To minimize cost, how many units should be ordered each time an order is placed? **Answer:** 104.50 units (round your response to two decimal places)b) How many orders per year are needed with this optimal policy? **Answer:** ____ orders (round your response to two decimal places)

Annual Demand of the component = D = 260 units Carrying Cost per unit per year = Cc = $1.00 Ordering…

Answered: M. Cotteleer Electronics supplies…

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

Explain the key assumptions of the basic EOQ model.
The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15% of the price and its ordering cost at $90 per order. On a 360-day basis, determine the annual requirement
Based on available information, lead time demandfor PC jump drives averages 50 units (normally distributed),with a standard deviation of 5 drives. Management wants a97% service level.a) What value of Z should be applied?b) How many drives should be carried as safety stock?c) What is the appropriate reorder point?
Wood County Hospital consumes 1,500 boxes of bandages per week. The price of bandages is $36 per box, and the hospital operates 52 weeks per year. The cost of processing an order is $15, and the cost of holding one box for a year is 20 percent of the value of the material. a. The hospital orders bandages in lot sizes of 900 boxes. What extra cost does the hospital incur, which it could save by using the EOQ method? $ 435.37 (Enter your response rounded to two decimal places.) b. Demand is normally distributed, with a standard deviation of weekly demand of 150 boxes. The lead time is 2 weeks. Refer to the standard normal table for z-values. What safety stock is necessary if the hospital uses a continuous review system and a 95 percent cycle-service level is desired? 348 boxes. (Enter your response rounded to the nearest whole number.) What should be the reorder point? boxes. (Enter your response rounded to the nearest whole number.) pm oints
If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, what is the EOQ lot size?
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
6. Wang Distributors has an annual demand for an airport metal detector of 1,000 units. The cost of a typical detector to Wang is $50. Carrying cost is estimated to be 25% of the unit cost, and the ordering cost is $40 per order. If Ping Wang, the owner, orders in quantities of 200 or more, he can get a 3% discount on the cost of the detectors. Should Wang take the quantity discount?
Please do not give solution in image format thanku Demand for Bartley's Baseball Gloves is 50 gloves per day, with a standard deviation of 5 gloves per day. It takes 12 days lead time to restock. Bartley wants to maintain a 93.7% level of service. How much safety stock does he need to carry? Hang on to 3 places beyond the decimal, properly rounded. Note that this question asks for SAFETY STOCK, not Reorder Point.
Cape Fear Hospital consumed 400 boxes of bandages per week last year. The price of bandages was $80 per box, and the hospital operates 52 weeks per year. The cost of processing an order was $64, and the cost of holding one box throughout a full year was 20% of the value of the material. What is the EOQ? 407 boxes 102 boxes O 408 boxes O 57 boxes
please answer within 30 mins.

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