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Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $11 per unit. They send orders electronically to the manufacturer, costing $23 per order and they experience an average lead time of six days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. Answer the following questions: a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. (Do not round intermediate calculations. Round up your answer to the next whole number.) Number of units b. How many orders will they place in a year? Number of orders per year c. What is the average inventory? (Round your answer to 1 decimal place.) Average inventory units d. What is the annual ordering cost? (Round your answer to 2 decimal places.) Annual ordering cost e. What is the annual inventory carrying cost?(Round your answer to 2 decimal places.) Annual inventory carrying cost

Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $11 per unit. They send orders electronically to the manufacturer, costing $23 per order and they experience an average lead time of six days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. Answer the following questions: a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. (Do not round intermediate calculations. Round up your answer to the next whole number.) Number of units b. How many orders will they place in a year? Number of orders per year c. What is the average inventory? (Round your answer to 1 decimal place.) Average inventory units d. What is the annual ordering cost? (Round your answer to 2 decimal places.) Annual ordering cost e. What is the annual inventory carrying cost?(Round your answer to 2 decimal places.) Annual inventory carrying cost

Practical Management Science
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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Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $11 per unit. They send orders electronically to the manufacturer, costing $23 per order and they experience an average lead time of six days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. Answer the following questions:

 

 

Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $11 per unit. They send orders electronically to the manufacturer, costing $23 per order and they experience an average lead time of six days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. Answer the following questions: a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. (Do not round intermediate calculations. Round up your answer to the next whole number.) Number of units b. How many orders will they place in a year? Number of orders per year c. What is the average inventory? (Round your answer to 1 decimal place.) Average inventory units d. What is the annual ordering cost? (Round your answer to 2 decimal places.) Annual ordering cost e. What is the annual inventory carrying cost?(Round your answer to 2 decimal places.) Annual inventory carrying cost
Transcribed Image Text:Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $11 per unit. They send orders electronically to the manufacturer, costing $23 per order and they experience an average lead time of six days for each order to arrive from the manufacturer. Their inventory carrying cost is 20 percent. The average daily demand for the figurines is three units per day. They are open for business 250 days a year. Answer the following questions: a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time. (Do not round intermediate calculations. Round up your answer to the next whole number.) Number of units b. How many orders will they place in a year? Number of orders per year c. What is the average inventory? (Round your answer to 1 decimal place.) Average inventory units d. What is the annual ordering cost? (Round your answer to 2 decimal places.) Annual ordering cost e. What is the annual inventory carrying cost?(Round your answer to 2 decimal places.) Annual inventory carrying cost
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