M/s Kobo Bearings Ltd., is committed to supply 24,000 bearings per annum to M/s Deluxe Fans on a steady dailybasis. It is estimated that it costs 10 paisa as inventory holding cost per bearing per month and that the setup costper run of bearing manufacture is 324.(a) What is the optimum run size for bearing manufacture?(b) What should be the interval between the consecutive optimum runs?(c) Find out the minimum inventory holding cost.

Given Data:Annual Output: 24,000 bearingsSetup cost per run of bearing manufacture: ₹324Annual Cost…

Answered: M/s Kobo Bearings Ltd., is committed to…

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

Please show work so I can understand it. Given this information: •Expected demand during lead time = 800 units • Standard deviation of lead time demand = 40 units Assuming that lead time demand is distributed normally. The risk of stockout is 5 percent during lead time (a) What amount of safety stock is appropriate? (b) Calculate ROP
IL Data related to the inventories of Metro Supply are presented below: 困 Surgical Equipment $ 260 170 240 Surgical Supplies $ 120 Rehab Rehab Selling price Cost Equipment S 340 Supplies $ 165 90 250 235 162 Replacement cost Costs to sell Normal gross profit ratio 80 158 30 25 10 30% 30% 30% 20% *Show your computation! If not, no credit A) In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at: B) In applying the lower of cost or market rule, the inventory of surgical supplies would be valued at: C) In applying the lower of cost or market rule, the inventory of rehab equipment would be valued at: D) In applying the lower of cost or market rule, the inventory of rehab supplies would be valued at:
A store sells university coffee mugs. Daily demand is 25 mugs with a standard deviation of 4 mugs per day. Each mug costs $7.85. Ordering costs are $11. The carrying costs are $2 per year. The store is open 250 days per year. Lead time is 6 days with a standard deviation of 1.6 days. Desired service level is 98%. Calculate the EOQ (round your answer to the nearest whole number) 2. CAREFUL! YOUR NUMBERS HAVE CHANGED A store sells university logo hats. Daily demand is 22 hats with a standard deviation of 4 hats per day. Each hat costs $7.85. Ordering costs are $12. The carrying costs are $1 per year. The store is open 250 days per year. Lead time is 4 days with a standard deviation of 1.6 days. Desired service level is 98%. Calculate the ROP with safety stock.
Discuss how inventory expenses must be balanced and kept to q minimum through inventory control
Joe Henry's machine shop uses 2,530 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,530 Holding cost per bracket per year $1.65 Order cost per order $18.25 Lead time 2 days Working days per year 250 Part 2 a) What is the EOQ? enter your response here units (round your response to two decimal places). Part 3 b) What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places). What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places). Part 4 c) Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places). What would be the annual order cost? $enter your response here (round…
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,900 units. Southeastern estimates its annual holding cost for this item to be $25 per unit. The cost to place and process an order from the supplier is $78. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. a) What is the economic order quantity? units (round your response to the nearest whole number).
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 14,100 units. Southeastern estimates its annual holding cost for this item to be $22 per unit. The cost to place and process an order from the supplier is $73. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days. a) What is the economic order quantity? 306 units (round your response to the nearest whole number). b) What are the annual holding costs? $ 3365 (round your response to the nearest whole number). c) What are the annual ordering costs? $ 3364 (round your response to the nearest whole number). d) What is the reorder point? units (round your response to the nearest whole number).
A museum of natural history is having problems managing their inventories. Low inventory turnover is squeezing profit margins and causing cash-flow problems. A Class A item, a birdfeeder is also a top-selling item. See information for this item in the table below. Management has been ordering in lots of 390 units. 1) What is the annual cost of the current policy (hint: find the current total cost with the current order size, Q)? 2) What is the Economic Order Quantity or the optimum order quantity (EOQ) for the birdfeeders? 3) What is the total annual cost of ordering at the EOQ? How much could be saved if the museum ordered at the EOQ opposed to their current order size of 390 units? 4) When should the museum place an order, at how many units (i.e.: what is their reorder point or lead time demand)? Sales per week (demand) Purchase cost Order cost Annual holding cost Birdfeeder: Operating weeks per year Lead time for orders (weeks) Order size EOQ (calculated) 18 $ $ 60.00 45.00 25% of…
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,200 units. Southeastern estimates its annual holding cost for this item to be 323 per unit. The cost to place and process an order from the supplier is $73. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. a) What is the economic order quantity? units (round your response to the nearest whole number). b) What are the annual holding costs? $ (round your response to the nearest whole number) c) What are the annual ordering costs? S (round your response to the nearest whole number). d) What is the reorder point? units (round your response to the nearest whole number).
4
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,500 units. Southeastern estimates its annual holding cost for this item to be $23 per unit. The cost to place and process an order from the supplier is $78. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days. a) What is the economic order quantity? units (round your response to the nearest whole number). (round your response to the nearest whole number). b) What are the annual holding costs? $ c) What are the annual ordering costs? $ (round your response to the nearest whole number). d) What is the reorder point? units (round your response to the nearest whole number).
Suppose that we would like to determine Reorder Point for the product. From the historical data the manager determined demand during lead-time for that product fits Normal distribution with a mean of 200 and standard deviation of 10 products. The maximum stock out risk is 10%. Answer the following questions according to the (Q, R) system. a) Find the safety stock if the lead time is 2 weeks. b) Find the reorder point. c) Find the reorder point if the stock out risk decreases to 1%. Comment on the result.

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