Problem 11-14 (Algo)Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An Americandistributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take three weeks toarrive.Charlie's Pizza uses an average of 250 pounds of pepperoni each week, with a standard deviation of 12 pounds. Charlie's prides itselfon offering only the best-quality ingredients and a high level of service, so it wants to ensure a 90 percent probability of not stockingout on pepperoni.Assume that the sales representative just walked in the door and there are currently 450 pounds of pepperoni in the walk-in cooler.How many pounds of pepperoni would you order?Note: Use Excel's NORM.S.INV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimalplaces and final answer to the nearest whole number.Amount of pepperoni ordered

Step 1: Calculate Demand During Lead TimeFirst, we calculate the expected demand during the 3-week…

Answered: Problem 11-14 (Algo) Charlie's Pizza…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q5 ZED Company supplies plastic crockery to fast food restaurants in metropolitan city. One of its products is a special bowl, disposable after initial use, for serving soups to its customers. Bowls are sold in pack 10 pieces at a price of Rs. 50 per pack. The demand for plastic bowl has been forecasted at a fairly steady rate of 40,000 packs every year. The company purchases the bowl direct from manufacturer at Rs. 40 per pack within a three days lead time. The ordering and related cost is Rs. 8 per order. The storage cost is 10% per cent per annum of average inventory investment. Required: (i) Calculate Economic Order Quantity. (ii) Calculate number of orders needed every year. (iii) Calculate the total cost of ordering and storage bowls for the year. (iv) Determine when should the next order to be placed. (Assuming that the company does maintain a safety stock and that the present inventory level is 333 packs with a year of 360 working days.
A1
Question 13
Question 9.3 Sun Rise Grocers (SRG) orders most of its items in lot sizes of 10 units. Average annual demand per side of chicken is 720 units per year. Ordering costs are $25 per order with an average purchasing price of $100. Annual inventory carrying costs are estimated to be 40 percent of the unit cost. Required Determine the economic order quantity. Determine the annual cost savings if the shop changes from an order size of 10 units to the economic order quantity. Since the shelf life is limited the Sun Rise Grocers must keep the inventory moving. Assuming a 360-day year, determine the optimal lot size under each of the following: (1) a 20-day shelf life and (2) a 10-day shelf life.
chapter 4 14. The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler. The manufacturer will not ship orders for less than $1,200 total list price. Delivery typically requires five weeks, and freight averages 2.5% of total billed cost. Trade discounts on the merchandise are 40% and 10%; terms are 2/10, n/30. A wholesaler located in the retailer's area stocks many of the same stuffed animals. he does not require a minimum order and will deliver at no charge in the area if the order has a total billed cost of at least $500. The manufacturer and wholesaler base cost on the same list price; however the wholesaler sells with trade discounts of 40% and 8% and terms of 1/15, n/30. What is the difference in the total net cost (including freight) of merchandise with a total list price of $1,200 from these two vendors? (Present your answer with a comma separator, dollar-sign, and rounded to the penny (i.e. $1,234.56).)
Breadmaster produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.00 per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months: July $1540 Loaves August $1820 Loaves Sep. $1660 Loaves Oct. $1460 Loaves The bakery has a policy that it will have 20% of the following month's flour needs on hand at the end of each month. At the end of June, there were 154 pounds of flour on hand. Prepare the direct materials budget for the third quarter, with a column for each month and for the quarter. Begin the direct materials budget by determining the total quantity needed, then complete the budget. (Enter the pounds per unit as a decimal to two places. Round your calculations to the nearest whole number.)
Question 6. Juicy Ltd produces and sells Fruit Juices. The company provides the following estimated sales for the next six months: Month January February March April May June Unit Sales: 100,000 110,000 120,000 110,000 130,000 120,000 The company's policy is to keep ending inventory of finished goods that is equal to 20% of the unit sales for the next month. Three kilograms of direct materials are required for each bottle of finished goods produced. Each kilogram of direct materials costs $6. Ending inventory levels for materials are equal to 20% of the production needs for the next month. Sales price per bottle is $60. Required (show your workings and round it to the nearest two decimal places): (a) Prepare sales budgets in units and dollars for February and March Prepare production budgets in units for February and March (b) (d) Prepare direct materials purchases budgets in kilograms and dollars for February ANSWER 6: PLACE YOUR ANSWER HERE (PRESS ENTER TO CREATE MORE SPACE) (5…
Problem 11-19 (Algo) The annual demand for a product is 15,000 units. The weekly demand is 288 units with a standard deviation of 80 units. The cost to place an order is $32.00, and the time from ordering to receipt is six weeks. The annual inventory carrying cost is $0.10 per unit. a. Find the reorder point necessary to provide a 90 percent service probability. Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places. Reorder point units b. Suppose the production manager is asked to reduce the safety stock of this item by 45 percent. If she does so, what will the new service probability be? Note: Use Excel's NORM.S.DIST() function to find the correct probability for your computed z value. Round "z" value to 2 decimal places and final answer to 1 decimal place. Service probability %
What is the minimum selling price The Walls candy company should accept for the order? Explain why.
#15 Expenses for a Pizza restaurant include raw material for pizza at $5.00 per slice, $124.00 as monthly rental and $25.00 monthly as insurance. Lost sale expense is considered to be $6.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month. Today the restaurant prepared 200.00 pizza slices and sells them for $14.00/slice. There was a party at a nearby office so the demand for pizza went up to 229.00 slices. How much profit did the restaurant earn today? Submit Answer format: Currency: Round to: 0 decimal places.
Customer Latitude and Pricing Maria Lorenzi owns an ice cream stand that she operates during the summer months in West Yellowstone, Montana. She is unsure how to price her ice cream cones and has experimented with two prices in successive weeks during the busy August season. The number of people who entered the store was roughly the same each week. During the first week, she priced the cones at $3.50 and 1,800 cones were sold. During the second week, she priced the cones at $4.00 and 1,400 cones were sold. The variable cost of a cone is $0.80 and consists solely of the costs of the ice cream and the cone itself. The fixed expenses of the ice cream stand are $2,675 per week. Required: 1. What profit did Maria earn during the first week when her price was $3.50? 2. At the start of the second week, Maria increased her selling price by what percentage? What percentage did unit sales decrease? (Round your answers to one-tenth of a percent.) 3. What profit did Maria earn during the second…
Ronald’s Pizza produces and sells the secret recipe pizzas. Each pizza sells for RM20.00. During December, Ronald’s sold 25,000 pizzas (the average amount sold each month). The restaurant employs cooks, servers and one supervisor (the owner, Black). All cooks and servers are part time employees. Ronald’s maintain a pool of part time employees so that the number of employees scheduled can be adjusted to the changes in demand. Demand varies on a weekly as well as a monthly basis. A Janitor is hired to clean the building on a weekly basis. The building is leased from a local real estate company. The building has no seating capabilities. All orders are filled on a drive-through basis. The supervisor schedules work, opens the building, counts the cash, advertises, and responsible for hiring and firing. The following costs were incurred during December. Cost Amount Cost Amount Flour 2,500 Utilities 1,500 Meat 950 Depreciation: Seafood 500 Cooking…

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