Homework Help is Here – Start Your Trial Now!
Business
Operations Management
optimal order quantity estimated that the ordering cost was $10 per this time, though, she believes that this estimate was too low. Although she does not know the exact order- ing cost, she believes that it could be as high as $40 per order. How would the optimal order quantity change if the ordering cost were $20, $30, and $40? 91 6-27 Ross White's machine shop uses 2,500 brackets dur- ing the course of a year, and this usage is relatively constant throughout the year. These brackets are pur- chased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost), and the ordering cost per order is $18.75. There are 250 working days per year. 1slugbo bosesb Dne o d901 VIS (a) What is the EOQ? 0000 (b) Given the EOQ, what is the average inventory ? CHO What is the annual inventory holding cost? 27200 (c) In minimizing cost, how many orders would be placed each year? What would be the annual CUS IDG ( XOF ordering cost? (d) Given the EOQ, what is the total annual inven- atory cost (including purchase cost)? (e) What is the time between orders? (f) What is the ROP? : 6-28 Ross White (see Problem 6-27) wants to reconsider his decision of buying the brackets and is consider- ing making the brackets in-house. He has determined that setup cost would be $25 in machinist time and ot 2ruilost production time and that 50 bracketo

optimal order quantity estimated that the ordering cost was $10 per this time, though, she believes that this estimate was too low. Although she does not know the exact order- ing cost, she believes that it could be as high as $40 per order. How would the optimal order quantity change if the ordering cost were $20, $30, and $40? 91 6-27 Ross White's machine shop uses 2,500 brackets dur- ing the course of a year, and this usage is relatively constant throughout the year. These brackets are pur- chased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost), and the ordering cost per order is $18.75. There are 250 working days per year. 1slugbo bosesb Dne o d901 VIS (a) What is the EOQ? 0000 (b) Given the EOQ, what is the average inventory ? CHO What is the annual inventory holding cost? 27200 (c) In minimizing cost, how many orders would be placed each year? What would be the annual CUS IDG ( XOF ordering cost? (d) Given the EOQ, what is the total annual inven- atory cost (including purchase cost)? (e) What is the time between orders? (f) What is the ROP? : 6-28 Ross White (see Problem 6-27) wants to reconsider his decision of buying the brackets and is consider- ing making the brackets in-house. He has determined that setup cost would be $25 in machinist time and ot 2ruilost production time and that 50 bracketo

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...
See similar textbooks
icon
Related questions
icon
Concept explainers
Question

6-27

optimal order quantity estimated that the ordering cost was $10 per this time, though, she believes that this estimate was too low. Although she does not know the exact order- ing cost, she believes that it could be as high as $40 per order. How would the optimal order quantity change if the ordering cost were $20, $30, and $40? 91 6-27 Ross White's machine shop uses 2,500 brackets dur- ing the course of a year, and this usage is relatively constant throughout the year. These brackets are pur- chased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost), and the ordering cost per order is $18.75. There are 250 working days per year. 1slugbo bosesb Dne o d901 VIS (a) What is the EOQ? 0000 (b) Given the EOQ, what is the average inventory ? CHO What is the annual inventory holding cost? 27200 (c) In minimizing cost, how many orders would be placed each year? What would be the annual CUS IDG ( XOF ordering cost? (d) Given the EOQ, what is the total annual inven- atory cost (including purchase cost)? (e) What is the time between orders? (f) What is the ROP? : 6-28 Ross White (see Problem 6-27) wants to reconsider his decision of buying the brackets and is consider- ing making the brackets in-house. He has determined that setup cost would be $25 in machinist time and ot 2ruilost production time and that 50 bracketo
Transcribed Image Text:optimal order quantity estimated that the ordering cost was $10 per this time, though, she believes that this estimate was too low. Although she does not know the exact order- ing cost, she believes that it could be as high as $40 per order. How would the optimal order quantity change if the ordering cost were $20, $30, and $40? 91 6-27 Ross White's machine shop uses 2,500 brackets dur- ing the course of a year, and this usage is relatively constant throughout the year. These brackets are pur- chased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost), and the ordering cost per order is $18.75. There are 250 working days per year. 1slugbo bosesb Dne o d901 VIS (a) What is the EOQ? 0000 (b) Given the EOQ, what is the average inventory ? CHO What is the annual inventory holding cost? 27200 (c) In minimizing cost, how many orders would be placed each year? What would be the annual CUS IDG ( XOF ordering cost? (d) Given the EOQ, what is the total annual inven- atory cost (including purchase cost)? (e) What is the time between orders? (f) What is the ROP? : 6-28 Ross White (see Problem 6-27) wants to reconsider his decision of buying the brackets and is consider- ing making the brackets in-house. He has determined that setup cost would be $25 in machinist time and ot 2ruilost production time and that 50 bracketo
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Recruitment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
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
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
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…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS