M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 725 units per month.The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in thetable. Ordering cost is $55, and annual holding cost per unit is $4.OAllen Mfg.Quantity1-499500-9991000+Unit Price$16.0015.5015.00Baker Mfg.Quantity1-399400-799800+Unit Price$16.1015.6015.10a) What is the economic order quantity if price is not a consideration? 489 units (round your response to the nearestwhole number).b) Which supplier, based on all options with regard to discounts, should be used? Allen Mfg.c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component?The optimal order quantity is 1000 with a total cost of $ (round your responses to the nearest whole number).

Inventory management is the process of planning, organizing, and controlling the flow of goods and…

Answered: M. P. VanOyen Manufacturing has gone…

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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5. A product whose EOQ is 120 units experiences a decrease in ordering cost from $90 per order to $10 per order. The revised EOQ is: Select one: a. 900 b. 40 c. 360 d. 30 e. 10
A. Ltd buys 400 units of an item at a purchase cost Sh.5000 per unit and ordering cost of Sh.2,000 per order placed. The carrying cost is estimated at 24% of cost of an item p.a. The Co. has received a 2% discount offer for purchases of 100 or more units. Required: a) Determine the best inventory policy for this item. b) Determine the discount level at which the firm will be indifferent between taking and not taking the discount offer.
The next four questions concern the swim team at Blacksburg High School (BHS). The coach of the team must choose 4 swimmers for the 800 meter medley relay team. The medley relay consists of four strokes – backstroke, breaststroke, butterfly, and freestyle. The Excel spreadsheet illustrating the solution to this problem, as well as the coach’s expected times of each of her top 6 swimmers, are pasted below:
Develop an EOQ solution and calculate total relevant costs for the data in the preceding table.
M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 725 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $50, and annual holding cost per unit is $6. Allen Mfg. Quantity 1-499 Baker Mfg. Unit Price Quantity Unit Price $16.00 1-399 $16.10 15.50 15.00 400-799 800+ 500-999 1000+ 15.60 15.10 a) What is the economic order quantity if price is not a consideration? 381 units (round your response to the nearest whole number). b) Which supplier, based on all options with regard to discounts, should be used? Allen Mfg. c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? The optimal order quantity is ☐ with a total cost of $ (round your responses to the nearest whole number).
Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 800 cases every 3 months from Scary Clowns. Scary Clowns incurs setup costs of $5,000 every time it produces these cases, and its annual holding cost per case is $14. Question content area bottom Part 1 a. Which inventory model fits the best to this problem? A. All-units quantity discounts model B. Incremental quantity discounts model C. One-time sale model D. EOQ model E. POQ model F. Lumpy demand model b. Scary Clowns should produce enter your response here units in each batch (round your response to the nearest integer). c. The total annual setup and holding cost for Scary Clowns using this policy is $enter your response here (round your response to the nearest
am. 124.
M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 700 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $45, and annual holding cost per unit is $4. Allen Mfg. Quantity 1-499 500-999 1000+ Baker Mfg. Unit Price $16.00 15.50 15.00 Quantity 1-399 400-799 800+ Unit Price $16.10 15.60 15.10 a) What is the economic order quantity if price is not a consideration? 435 units (round your response to the nearest whole number). b) Which supplier, based on all options with regard to discounts, should be used? Allen Mfg. c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? (round your responses to the nearest whole number). The optimal order quantity is ☐ with a total cost of $
8
Beginning Quantity Ending Inventory Order? Lost Week Demand inventory on-order inventory position (yes/no) Sales 1 100 53 2 40 3 36 4 38 5 55 6 34 7 30 8 31 9 40 10 57 11 30 12 53
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
Problem 11-3 Solve the newsvendor problem. What is the optimal order quantity? Probability Value Purchase cost c Selling price p Salvage value v 0.13 0.03 0.19 1 2 3 Optimal order quantity 45 70 25 0.16 0.10 4 5 0.39 6

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