Problem 3Olive Corporation buys a material tor P20 per unit. Sixteen thousand parts a year areneeded. Carrying cost is P3.00 per unit and the ordering cost is P15.Required:a. Compute the economic order quantity.b. Prepare a tabular analysis to compute the total cósts assuming the followingorder sizes: 100 units, 200 units, 400 units, 1,600 units and 6,400 units. Thetable should have the following columns: order size, number of orders, costper order, total ordering costs, average inventory, carrying cost per unit, totalcarrying costs, and total costs.

Economic order quantity- It is the perfect order quantity an organization must buy to reduce…

Answered: Problem 3 Olive Corporation buys a…

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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Aa 37.
The seasonal demand for a particular product is given below: Period 12 3 4 56 Demand 300 450 100 450 450 100 The fixed parameters are: Fixed Cost $8 Unit Production Cost $1 Holding Cost $1.3 Calculate total ordering cost using the following three methods: i) Lot-for-Lot ii) Wagner-Whitin algorithm iii) Fixed order quantity
What are the primary objectives of the Wilson approach, and how does it optimize inventory levels?
2.7, 2.8, 2.9 and 2.10 ques
Answer Problem #3 : items 11& 12
2. (Quantity Discount) County Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90 per syringe because of security and theft. The hospital supply firm offers the following quantity discount pricing schedule. Qty 0-9,999 10,000-19,999 20,000-29,999 30,000-39,999 40,000-49,999 50,000+ Price $ 3.40 $ 3.20 $ 3.00 $ 2.80 $ 2.60 $ 2.40 What is best order quantity for syringes that minimize total cost?
Problem 13-16 The McDonald's fast-food restaurant on campus sells an average of 4,800 quarter-pound hamburgers each week. Hamburger patties are resupplied twice a week, and on average the store has 465 pounds of hamburger in stock. Assume that the hamburger patties cost $3 a pound and there are 52 weeks in a year. a. What is the inventory turnover for the hamburger patties? (Round your answer to 2 decimal places.) Inventory turnover per year b. On average, how many days of supply are on hand? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average days of supply
4. a. Categorize and define the inventory costs. b.The material DX is used uniformly throughout the year. The data about annual requirement, ordering cost and holding cost of this material is given below: Annual requirement: 2,400 units Ordering cost: $10 per order Holding cost: $0.30 per unit Calculate • EOQ • average inventory • number of orders per year length of order cycle and total cost.
1. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the EOQ.
1. Determine the inventory order quantity for Diamant’s distributor.2. Compare the optimal order quantity with a seasonally adjusted forecast for demand. Doesthe order quantity seem adequate to meet the seasonal demand pattern for Diamonds(i.e., is it likely that shortages or excessive inventories will occur)?
Q1/ Company produced 700 pieces of ceiling fius per year, the order cost is 1400S, the shortage cost is 15% of order cost and the inventory holding cost is two dollars per item per year. Find 1. Shortage allowable quantity. 2. to. 3. Number of ordering during the year.
35) Oman Apparels needs to place order for materials for their operations. The material costs OMR 1,000, and the annual holding cost is 25%, annual demand is 10,000 units, and the order cost is OMR 150 per order. Find out the approximate economic order quantity of the company? a. 250 units b. 110 units c. 12,000 units d. 70 units

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