PART ASpeedy Bicycle Company (SBC) is a wholesale distributor of a wide variety of bicycles and bicycle parts. The most popular model isthe Dragonfly, which sells for $170. All manufacturing is done at a plant in China, and shipment takes a month (30 days) from thetime an order is placed. The estimated order cost is $75, including customs clearance. SBC's cost per bicycle is 65% of retail price,and inventory carrying cost is 11% per year of SBC's cost. If the company cannot fulfill a retail order, the retailer will get theshipment from another distributor and SBC loses that business. SBC is planning inventory for 2023 based on forecasted demand andwants to maintain a 93% service level to minimize lost orders. The company has 300 working days per year.2021 Forecasted Demand for the Dragonfly Bicycle Model:FAMJ155896J8M31Jper order 1Inventory Activity5938(round to nearest cent) 2bicycles 6A23Develop an inventory plan for the Dragonfly model. Canvas responses shown in red.Get organized:Order cost = $_Cost per bicycle = $_Annual holding cost per bicycle = $_Service level =% so z =Lead time =days 5Annual demand for 2023 =S163 (round to nearest cent)4O14N26D41

Answered: Image /qna-images/answer/797e6aa6-cb18-4183-a747-18b6b970940c.jpg

Answered: PART A Speedy Bicycle Company (SBC) is…

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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A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days a year that the plant operates. Annual holding cost is $3 per chip, and ordering cost is $120. Determine the following: What is the reorder point, if the lead time is 7 days?
Determine which delivery alternative would be most economical for 50 boxes of parts. Each box costs $434 and the annual holding cost is 20% of the cost. Assume 365 days per year. Overnight delivery option costs $300, and eight-day delivery option costs $125 a. The overnight option is at least $182 cheaper than eight-day b. The overnight option is at least $91 cheaper than eight-day c. The eight-day option is at least $182 cheaper than overnight d. The eight-day option is at least $91 cheaper than overnight
Determine which delivery alternative would be most economical for 70 boxes of parts. Each box costs $346 and the annual holding cost is 30% of the cost. Assume 365 days per year. Overnight delivery option costs $300, and eight-day delivery option costs $125 a. The overnight option is at least $70 cheaper than eight-day b. The eight-day option is at least $35 cheaper than overnight c. The eight-day option is at least $70 cheaper than overnight d. The overnight option is at least $35 cheaper than eight-day
DISCUSS your thoughts on how poor inventory management affects the end customer of a product, especially as it relates to the cost of the product.
A local distributor for a national tire company expects to sell approximately 200 steel-belted radial tires of a certain size and tread design next year. Annual carrying cost is $20 per tire, and ordering cost is $5. The distributor operates 200 days a year. What is the Total Cost?
The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was four days, but now the vendor promises a reduction of 25 percent in that time. Annual usage of soap is 4,500 gallons. The car wash is open 360 days a year. Assume that daily usage is normal, and that it has a standard deviation of 2 gallons per day. The ordering cost is $30 and annual carrying cost is $3 a gallon. The revised price list (cost per gallon) is shown in the following table: Quantity 1 - 399 400 799 800 + Unit Price $2.00 1.70 1.62 Click here for the Excel Data File a. What order quantity is optimal? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) Optimal order quantity ROP b. What ROP is appropriate if the acceptable risk of a stockout is 1.5 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) gallons…
Fresco Inc. manufactures sour pops annually which requires 0.4 kilograms of raw material. The company produces and sells 1,600, 000 sour pops annually. The cost to place a single order is $60 per hour which takes four (4) hours on average. The annual carrying cost of inventory is 4% per annum and currently, the company orders twenty (20) times per year. A major supplier has offered some incentives for bulk purchases and as the junior cost accountant you were asked to provide your professional opinion on the optimal order size. A 3% discount would be given if the entity doubles its current lot size. A further 2% would be given if the entity increased its order by two and a half times the current lot size. The material is currently bought from its supplier for $120 per kilogram. Required: (a) Calculate the Economic Order Quantity (EOQ). (b) Calculate the total cost based on the EOQ. (c) Calculate the total cost for each alternate order quantities, including the current policy. (d) What…
Please help me with this practice problem. Please use specific equations that apply and where to put them. Please list out the steps. Thank you
Show your complete solution.
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.80 per stone for quantities of 600 stones or more, $9.20 per stone for orders of 400 to 599 stones, and $9.70 per stone for lesser quantities. The jewelry firm operates 230 days per year. Usage rate is 16 stones per day, and ordering costs are $45.a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Do not round intermediate calculations, except for order quantities which should be rounded to the nearest whole number. Round your final answer to the nearest whole number.) b. If annual carrying costs are 20 percent of unit cost, what is the optimal order size? (Do not round intermediate calculations, except for order quantities which should be rounded to the nearest whole number. Round your final answer to the nearest whole number.) c. If lead time is 3 working days, at what point should the company reorder? (Do…
What is the relationship between purchasing and the classical EOQ model?

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