Question 10.6 Storage Limited operates a 50-week working year. It produces a product called 'GENERAL' for which demand any week in the year is described by the probability distribution below: 5 6 7 3 4 Probability 0.07 0.10 0.11 0.13 0.15 0.17 0.13 0.08 0.04 0.02 Demand Demand can only be satisfied (if at all) from stocks. The stockholding costs are 4 per item per year. Fixed costs per re-order are NI6 and the variable, re-order costs are N30 per unit Lead time is one week. The costs of being out of stock are N12 per unit short. You are required to calculate: (i) The average weekly demand; [iii) The Economic Order Quantity3B [iv] The number of ordering cycles in the year; and [v] State briefly the main reason for holding inventory, and explain why good inventory management is a very important aspect of overall company management. [ii The average annual demand;

Question 10.6 Storage Limited operates a 50-week working year. It produces a product called 'GENERAL' for which demand any week in the year is described by the probability distribution below: 5 6 7 3 4 Probability 0.07 0.10 0.11 0.13 0.15 0.17 0.13 0.08 0.04 0.02 Demand Demand can only be satisfied (if at all) from stocks. The stockholding costs are 4 per item per year. Fixed costs per re-order are NI6 and the variable, re-order costs are N30 per unit Lead time is one week. The costs of being out of stock are N12 per unit short. You are required to calculate: (i) The average weekly demand; [iii) The Economic Order Quantity3B [iv] The number of ordering cycles in the year; and [v] State briefly the main reason for holding inventory, and explain why good inventory management is a very important aspect of overall company management. [ii The average annual demand;

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

Similar questions

Estes Bal. 200 200 150 Truong Bal. 0 100 100 Gehrke Bal. 100 100 150 Weiser Bal. 100 100 100 100 Determine the correct amount of the end-of-month posting from the sales journal to the Accounts Receivable control accoun Amount of the end-of-month posting from the sales journal to the Accounts Receivable control
Solve the newsperson problem. Probability 0.11 0.15 Value 1 2 Purchase cost c Selling price p Salvage value v = |||||| Optimal order quantity = 0.24 3 13 29 양 11 What is the optimal order quantity? 0.28 4 0.16 5 0.06 6
云 < cO # 3 QUESTION 6 A measure of the importance of trade is: OA. Trade as a percentage of employment rate. OB. Trade as percentage of GDP. O C. The dollar value of trade adjusted for inflation. OD. The real value of trade. QUESTION 7 given goods A and B and a budget , if the relative price of A were to increase, the budget line would: A. Shift out in parallel fashion. OB. Shift in a relative fashion. C. Become steeper. OD.Become flatter OUESTION8 MAR 12 tv 08 F3 F2 DD F7 F4 F5 F6 F8 24 2. ) 9 7. 6
Q3. Suppose that a publishing company periodically replenish its supply of paper stock. The paper comes in large rolls and that the printer uses 90 rolls per quarterly. The cost of one roll paper is OMR 150. The cost of replenishment is OMR 10 per order. The cost of keeping the paper on hand, including rent for space occupied, insurance, and interest on the capital tied up is 10 percent per roll per year. Calculate: 1)The EOQ. 2)No. of orders in a year, and 3)Time between two successive orders 4)Average yearly cost of Inventory 4)Total inventory cost 5)Total Cost
2) Daily demand for a product is normally distributed with a mean of 100 and a standard deviation of 12. The lead time is normally distributed with a mean of 5 days and a standard deviation of 1.5 days. a) What is the ROP to satisfy a %90 probability of not stocking out? b) What is the safety stock? c) What is the probability of stocking out if the manager has decided not to keep any safety stock? What is the Z value, and what is the probability?
S5. Account
Weiss’s paint store keeps an inventory of white latex paint product in the gallon size. The manager reviews the stock level every 4 months. Demand is observed to be normally distributed with a monthly mean of 28 gallons and a standard deviation of 8. Re-supply lead time is 2.5 months. The store manager targets a 98 percent in-stock probability during the lead time. • What is the target inventory position?
Please help to solve step by step.
Solve the newsperson problem. Probability 0.15 0.16 0.18 0.18 0.14 0.19 Value 1 2 m 4 5 6 Purchase cost c Selling price p Salvage value v 222 20 28 15 What is the optimal order quantity?
In the last 12 months the quantities shown inTable 1 of light vehicles of a brand "R" were sold in the national territory.The selling price of each R vehicle is 12590€. The production cost(including raw material cost) of one is 7730€. The company usesown transportation to transport the vehicles worth 420€, andgiven the distance to the factory, takes on average, 8days, with a standard deviation of 2 days. Storage until saleis estimated at 150€/unit.year. The companyfinancial loans at an annual rate of 2.2%. Consider that ayear has 264 working days.a) Determine the economic order quantity.b) Consider that a service level of 85% (Z=1.036) is to be ensured using a continuous reviewinventory management policy of continuous review. Determine:i. The order point.ii. The economic order quantity considering stock-outs. Month Sales Month Sales 1 2235 7 3078 2 3206 8 2366 3 4298 9 1966 4 3309 10 2149 5 3640 11 2387 6 4038 12 2492
Q 12.30: Alvin's Apple Orchard manages inventory closely to maintain freshness. In the past four years, its current assets have fluctuated with demand and supply of fresh fruits. The following table reproduces selected balance sheet items: 2020 2019 2018 2017 Accounts 10.1% 11.9% 12.1% 12.4% receivable Raw material 7.0% 7.6% 7.8% 8.0% inventory Finished goods 5.2% inventory 4.6% 5.3% 5.4% Alvin's common size analysis shows that A inventory management improved over the period as a result of better control over raw material inventory. В inventory management deteriorated over the five years as a result of poor control over finished raw material inventory. C receivables are becoming easier to collect. inventory management improved over the period as a result of better control over finished goods inventory. D
Please help to solve step by step.