Question 2In the following scenario, what will your stockout costs be if you have 200 hammersin stock and you have orders of 80, 60, 50, 30, 120You are a wholesaler selling hammers. You have a carrying cost for each hammer left in inventory of $.30 per unit, orderingcost of $60 per order placed, and a stockout cost of $30 per customer who is not fully satisfied and $3 per hammer for anyorders not fulfilled (lost sales). Orders placed arrive in the sixth week after the week in which the order is placed.Smallest orders are filled first.$480$1,080$660$450$300

Arrange the orders received in ascending order: Order received 80 60 50 30 120…

Answered: Question 2 In the following scenario,…

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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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 4 Illustrate Guardian pharmacy’s reorder system to manage their inventory so meet customer expectation. answer guidelines To use order point system and periodic review system. Illustrate its characteristics/advantage in the context of managing inventory in a pharmacy. For example: 1. Order point system - When the quantity of an item on hand in inventory falls to a predetermined level, an order is placed. • The quantity ordered is based on economic order quantity (EOQ). • Order quantity are usually fixed. • The order point is determined by the average demand during the lead time. • If the average demand or the lead time changes, there is no corresponding change in the order point, effectively there is a change in the safety stock. • The interval between replenishment are not constant but vary depending on the actual demand during the order cycle. Usually used for stocks that are longer to sell from the store so to…
Part 2 Calculation Questions As assistant manager of a soccer specialty store you have been asked to review the inventory costs associated with the store's best selling soccer shoe. The information you have available concerning this shoe follows: Average Demand =18 pairs per week; Standard Deviation of demand = 6 pairs Lead time for ordering shoes= 1 week; Ordering cost $32 per order Cost of a pair = $90; Carrying cost per pair per year 10% of cost of per pair Service level =98%, Z =2.05; The store operates 50 weeks per year. = (1) If the economic lot size model is applied, what is the optimal order cost (Q) and total cost per year(TC) for the best selling soccer shoe? (2) If the continuous review inventory policy - (Q,R) policy is applied, what is the record level R for the bestselling soccer shoe? (3) If the periodic review inventory policy- bask- stock level policy is applied and the manager checks the stock level every 3 weeks, what is the base-stock level the store should…
Question 11 You are responsible for maintaining an appropriate amount of inventory for Component A, using a Q-type inventory control system (fixed quantity, continuous review). Your company estimates your ordering cost to be 500 and the annual cost of holding this item in inventory to be 12. Annual demand for this item is forecasted to be 5,000 and the company has 300 working days per year. Your supplier's lead time is 15 days. What should your reorder point be if the standard deviation of daily demand is 30 and your target customer service level is 95%? (Round to the nearest integer.) Your Answer: Answer Question 12 You are responsible for maintaining an appropriate amount of inventory for Component A, using a P-type inventory control system (periodic review) with P=30. Your supplier's lead time is 20 days. Daily demand averages 400, with a standard deviation of 200. How much safety stock will you need if your target customer service level is 95%? (Round to the nearest integer.) Your…
QUESTION 5 Peet's Coffees in Menlo Park, California, sells Melitta Number 101 coffee filters at a fairly steady rate of about 70 boxes of filters monthly. The filters are ordered from a supplier in Trenton, New Jersey. Peet's manager is interested in applying some inventory theory to determine the best replenishment strategy for the filters. Peet's pays $2.80 per box of filters and estimates that fixed costs of employee time for placing and receiving orders amount to about $20. Peet's uses a 22 percent annual interest rate to compute holding costs. How large a standing order should Peet's have with its supplier in Trenton, and how often should these orders be placed? EOQ= 216.22 Cycle=3 in years
question 3 Sam's Cat Hotel operates 52weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags. Refer to the standard normal table AT END for z-values. ≻Demand= 92 bags/week ≻Order cost =$58/order ≻Annual holding cost =26 percent of cost ≻Desired cycle-service level=99 percent ≻Lead time = 1 week(s) (5 working days) ≻Standard deviation of weekly demand = 20 bags ≻Current on-hand inventory is 310 bags, with no open orders or backorders. a. What is the EOQ? Sam's optimal order quantity is__________ bags. (Enter your response rounded to the nearest whole number.) What would be the average time between orders (in weeks)? The average time between orders is _________weeks. (Enter your response rounded to one decimal place.) b. What should R be? The reorder point is _________ bags. (Enter your response rounded to the…
Question 27 C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges C&A $30 per order and $50 per bottle. C&A's annual holding cost percentage is 40%. Assume C&A operates 50 weeks in a year. What is C&A's total ordering and holding cost per year if C&A orders 600 bottles at a time? Group of answer choices $13,500 $7,500 $6,800 $5,036
Question 4An electronics shop sells 6000 headphones in a year and the sales is relatively constantthroughout the year. These headphones are purchased for SR 20.00 each, and the leadtime is three days. The holding cost per headphone per year is 10% of the unit cost andthe ordering cost per order is SR 75. There are 300 working days per year. Calculate thefollowing:(i) What is the annual holding cost?(ii) In minimizing the cost, how many orders would be made each year?(iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)? Write the answer on the computer
Question 4An electronics shop sells 6000 headphones in a year and the sales is relatively constantthroughout the year. These headphones are purchased for SR 20.00 each, and the leadtime is three days. The holding cost per headphone per year is 10% of the unit cost andthe ordering cost per order is SR 75. There are 300 working days per year. Calculate thefollowing:(i) What is the annual holding cost?(ii) In minimizing the cost, how many orders would be made each year?(iii) Given the EOQ, what is the total annual inventory cost (including purchase cost)?(iv) What is the time between orders?(v) What is the ROP?
Question 8 What of the following best describes just-in-time inventory management? A firm minimises the time lags present in the supply chain by maintaining a certain amount of inventory to use in these lag times Inventory is maintained as a buffer to meet uncertainties in demand, supply, and movements of goods Production inefficiencies arising when production capacity stands idle for lack of materials are minimised by holding a small stock of essentials at all times A firm acquires inventory precisely when needed so that its inventory balance is always at, or close to, zero
Question 2 Identify and explain five techniques that firms could use to better manage their inventory.
What is ABC inventory system?

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