Q1/ Alpha Company estimates its product cost at 8000 $, the estimated annualrequirement is 25000 units at holding cost 15% of product cost.a. What is the most economical number of units to order?(EOQ).b. How many orders should be placed in a year?(optimal number of orders).

EOQ stands for Economic Order Quantity and it is a technique that is designed to assist companies to…

Answered: Q1/ Alpha Company estimates its product…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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12. A low inventory turnover might signal ________ a problem with old and obsolete inventory. ________ fast-moving inventory. ________ insufficient investment in inventory. ________ not enough inventory on hand.
Average daily demand (d) 80 units Standard deviation of daily demand (σd) 24 units Average lead time (LT) 6 days Standard deviation of lead time (σLT) 2 days Service level 91% 1. What is the required safety stock at a 91 percent service level? _______ units 2. What is the reorder point? _______ units
5. A product whose EOQ is 120 units experiences a decrease in ordering cost from $90 per order to $10 per order. The revised EOQ is: Select one: a. 900 b. 40 c. 360 d. 30 e. 10
Question 1: What are the primary reasons for holding inventory?
Question 1 (Stock Control) - : Suyuti Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Suyuti's generator production operation, which is operated at a constant rate, will require 1000 components per month throughout the year (12 000 units annually). Assume that the ordering costs are GH¢25 per order, the unit cost is GH¢2.50 per component and annual holding costs are 20 per cent of the value of the inventory. Suyuti has 250 working days per year and a lead time of five days. Answer the following inventory policy questions. a. What is the EOQ for this component? b. What is the reorder point? c. What is the cycle time? d. What are the total annual holding and ordering costs associated with your recommended EOQ?
question #3 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. With a safety stock of 300 boxes, what is the approximate service level (round to two decimals)? Numeric Response 84.13 * f5 10 f6 0 4- ♫+ fg C fil W f12. insert prt sc + 11 Ə ← delete backspace home num lock 4x D end 1:23 PM 11/15/2022 pg up
Ankit
Question Two: A store has an annual demand of 2,500. The cost to place an order to replenish inventory is $18.75 per order, and annual inventory holding cost per unit is $1.5 What is the optimal order size? What is the annual total cost?
QUESTION 1:A confectioner buys plastic boxes in bulk and uses them to pack chocolates. The annual requirement of these boxes is 1,200, and each box costs $30. The ordering and carrying costs are $10 per order and 20%, respectively. The supplier from whom the confectioner purchases these boxes sells them only in lots of 25, that is, you only purchase quantities in multiples of 25 boxes.(a) How many boxes should the confectioner order so as to minimise inventory total stocking costs?(b) If the supplier offers 2% discount on the cost of each box when the purchases are in quantities of 300 at a time, should the confectioner accept this offer?(c) Suppose the supplier has decided that instead of the 2% discount offer the following price breaks will be used:ORDER QUANTITY COST PER BOXLess than 100 $30.00100 to 199 $29.75200 or more $29.60What order quantity should the confectioner make?
Daily demand (d) 150 units Mean lead time (LT) 9 days Standard deviation of lead time (σLT) 3 days Service level 97% 1. What is the required safety stock at a 97 percent service level? ______ units 2. What is the reorder point? ______ units
Differentiate between 'order quantity' and 'order winners' providing examples 1000 words
am. 124.

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Q1/ Alpha Company estimates its product cost at 8000 $, the estimated annual requirement is 25000 units at holding cost 15% of product cost. a. What is the most economical number of units to order? (EOQ). h. How many orders should be placed in a year?optimal number of orders)