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...

See similar textbooks

Similar questions

Q4: Suppose that the demand for a product is 400 per year, and the items are withdrawn uniformly. The order cost is $25 and the inventory holding cost is $0.5 per item per year. If shortages cost $1 per item per year, find: 1. The economic order quantity. 2. Maximum inventory. 3.Shortage allowable quantity.
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 $
1. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the EOQ. 2. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the total carrying cost. 3. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the total ordering cost. 4. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the number of orders required per year. 5. Minmax Processing Company has an average requirement of 5 boxes 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
38 In the basic EOQ model, if D = 6000 per year, S = $100, and holding cost = $5 per unit per month, what is the economic order quantity? Select one: a. 600 b. 24 c. 100 d. 490 e. 141
Problem 11-3 Solve the newsvendor problem. What is the optimal order quantity? Probability Value Purchase cost c Selling price p Salvage value v 0.13 0.03 0.19 1 2 3 Optimal order quantity 45 70 25 0.16 0.10 4 5 0.39 6
Q4/ Company produced 1000 pieces of air conditioners per year, the order cost is 6000$, 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
Sh29
Kl. 263.

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