Phillip Witt, president of Witt Input Devices, wishes to create a portfolio oflocal suppliers for his new line of keyboards. As the suppliers all reside in alocation prone to hurricanes, tornadoes, flooding, and earthquakes, Phillipbelieves that the probability in any year of a "super-event" that might shutdown all suppliers at the same time at least 2 weeks is 2%. Such a totalshutdown would cost the company approximately $480,000. He estimatesthe "unique-event" risk for any of the suppliers to be 5%. Assuming that themarginal cost of managing an additional supplier is $14,800 per year, howmany suppliers should Witt Input Devices use? Assume that up to threenearly identical local suppliers are available.Find the EMV for alternatives using 1, 2, or 3 suppliers.EMV(1) = $whole number.)EMV (2)=$_EMV(3)=$(Enter your response rounded to the nearestBased on the EMV value, the best choice to use is...a. one supplierb. two suppliers

Here, for each alternative, I will determine the EMV value, Given data:Shutdown cost $…

Answered: marginal cost of managing an additional…

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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Caring Hospital's dispensary reorders doses of a drug when the supply on hand falls to 18 units. Lead time for resupply is three days. Given the typical usage over the last 10 days, what service level is achieved with the hospital's reorder policy? (Hint. Use the following formula.) (Do not round intermediate calculations. Round your "z" value and final answer to 2 decimal places.) Use Table. ROP =dLT +2 (od) √LT Day Units 1 3 2 3 4 4 7 5 Service level Click here for the Excel Data File 5 5 % 6 6 7 4 8 3 9 4 10 5
Consider the supply chain involved when a customer orders a product at Souq.com website as a retailer where the website directly sends the order to the customers. What is the cycle that will be deleted from cycle View representation for this scenario? Manufacturing cycle Procurement cycle Replenishment cycle Customer order cycle
A pharmacist is trying to determine the inventory order and stock levels for a particular drug. The following information is available about the drug. Demand (D) 85 tablets/week Working weeks per year 52 weeks Unit holding cost per year (H) $6 Order cost (S) $44/order Standard deviation of weekly demand (sd) 15 tablets Lead time (L) 2 weeks Desired cycle service level 95% If the pharmacist uses the continuous review (Q) system to control the inventory of the drug, what would be the order quantity and reorder point? If the pharmacist uses the periodic review (P) system to control the inventory of the drug, what would be the review interval and target inventory level? (Hint: Use the EOQ model to derive the review interval P)
Supply base management refers to the selection, development and maintenance of supply. Select one: a. True b. False
15-8
Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the table below. Annual usage is 800 valves; order cost is $7 per order; and annual inventory holding costs are $2.15 per unit. D Vendor A units at a time from Vendor C Vendor B Quantity 1-14 15-24 25-99 100-199 200-399 400+ Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost? Chris Sandvig Irrigation should order (enter your response as a whole number). Vendor A Price $35.00 34.75 33.55 32.35 31.15 30.75 Vendor D Vendor B Quantity 1-24 25-99 100-199 200-399 400+ Price $34.75 34.00 32.80 31.60 30.50 Vendor C Quantity 1-49 50-149 150-299 300+ Price $34.50 33.75 32.50 31.10 Vendor D Quantity 1-149 150-299 300+ Price $34.25 33.00 31.00
The Lo-Jack recovery system allows the police to track stolen cars. As a result, they not only recover 90% of Lo-Jack-equipped cars that are stolen but also arrest many auto thieves and shut down many "chop shops" that take apart stolen vehicles to get at their used parts. Thus Lo-Jack provides both private benefits and positive externalities. Should the government consider subsidizing Lo-Jack purchases?
Your company is streamlining its inventory management systems and has evaluated its inventory purchasing using the Economic Order Quantity (EOQ) model. 75,000 units are used annually. Each unit costs $50. The order cost (per order) is $180 and the carrying cost per item per year is $40. On the basis of this information it is recommended that the EOQ is 822 units per order. Unfortunately the supplier of inventory has a minimum order quantity of 2,000 units. How much more will it cost your company each year in total because of this supplier requirement? Show your workings.
Which of the following is NOT a way that supply chains add value? A supply chain includes companies that specialize in logistics and can provide greater access to new markets A supply chain can make the flow of products more efficient, decreasing the amount of time it takes to transport products A supply chain improves the quality of promotions that a company uses to communicate a product's value to consumers A supply chain allows Ford to buy tires at a lower price than it would cost for them to manufacture the tires themselves Supply chain members work together to make sure every product gets to where it's going when it's supposed to be there need Answer as soon as possible with explanation
Michael's Mechanical sells 6,000 jettison machines annually. Each machine costs Michael's $2,000 to purchase, inventory carrying costs are 36 percent of the purchase price, and the cost of placing an order with its supplier is $150. What is the EOQ? Round your answer to the nearest whole number. machines What is the total inventory cost at the EOQ level? Do not round intermediate calculations. Round your answer to the nearest dollar. $
A wholesaler estimates that 5.6 times a year a dispensing centre flips its stock. What are the months of supply?
hello, can someone help me with this question?: if a company regularly holds 50 units of safety stock of a product and places orders in quantities of 500 units for the same product, what would be the average warehouse inventory for that product?

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