QUESTION 5Diskup produces a variety of personal computer products. High-density 3.5-inch disks are produced at a rate of 1,800 per day and areshipped out at a rate of 800 per day. The disks are produced in batches. Each disk costs the company 20 cents, and the holding costs arebased on an 18 percent annual interest rate. Shortages are not permitted. Each production run of a disk type requires recalibration of theequipment. The company estimates that this step costs $180. Assume that 1 year=365 days.What is the maximum dollar investment in inventory that the company has in these disks?805.54

The solution is given in detail in Step 2.

Answered: QUESTION 5 Diskup produces a variety of…

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 Calculate the Total annual cost D=1,500units Q*= 250 units S = $10 per order N = 5 orders per year H= $.50per unit per year T= 50 days. Question Three The following information is given to you D = 19,000 units/yr; H = $4/unit/year; S=$25/order. Calculate the EOQ, Annual holding cost and annual ordering cost. Question Four The following information is given to you, D = 200 units/yr; H = $4/unit/year; Q= 60. Calculate the annual setup cost.
Consider a product with a daily demand of 150 units, a setup cost of $100, and a holding cost per unit of 11% of the $35.00 product cost. The firm operates and experiences demand 275 days per year. a. What is the Economic Order Quantity? [Select] b. What is the average inventory on hand? [Select] c. What are the number of orders per year? [Select] d. What are the total holding costs? $ [Select] > e. What if the company decided to order 1,100 units instead of the EOQ, what is the ordering cost? $ [Select]
K Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 100 per day Setting up the light production costs $48. The cost of each light is $1.05 The holding cost is $0.15 per light per year a) What is the optimal size of the production run? units (round your response to the nearest whole number).
Current decision to buy: Ross White's machine shop uses 200 brackets each month during the course of a year. This usage is relatively constant throughout the year. Currently, these brackets are purchased from a supplier 100 miles away for $16 each and the lead time is 2 days. The holding cost per bracket per year is $1.60 (10% of the unit cost) and the annual ordering cost per order is $18.50. There are 240 working days per year. Possible future decision to make in-house: Ross White is reconsidering his decision of buying the brackets and is considering making the brackets in-house. He has determined the set up costs would be $24.50 in machinist time and lost production time. Forty eight brackets could be produced in a day once the machine has been set up. Ross estimates that the cost (including labor and materials) of producing one bracket would be $14.85. The holding cost would be 10% of the cost. a. What is the EOQ given Ross' current decision to buy the brackets? What is the total…
Abey Kuruvilla, of Parkside Plumbing, uses 1,350 of a certain spare part that costs $24 for each order, with an annual holding cost of $25. Part 2 a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). Order Size Total Cost ($) 25 enter your response here 40 enter your response here 50 enter your response here 60 enter your response here 100 enter your response here b) What is the economic order quantity?units (round your response to two decimal places).
Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $48. The cost of each light is $1.05. The holding cost is $0.15 per light per year a) What is the optimal size of the production run? 3653 units (round your response to the nearest whole number). b) What is the average holding cost per year? $ 161.65 (round your response to two decimal places) c) What is the average setup cost per year? $ 161.62 (round your response to two decimal places). d) What is the total cost per year, including the cost of the lights? $ (round your response to two decimal places).
13.37. Kelly's Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 20 gallons and a standard deviation of 4 gallons. The lead time required to receive an order of beer from the local distributor is 12 days. Determine
The operator of a concession at a downtown location estimates that he will sell 470 bags of circus peanuts during a month. Holding costs (annual) are 38 percent of unit price and ordering cost is $14. The price schedule for bags of peanuts is : 1 to 199, $2.5 each; 200 to 499, $2.46 each; and 500 or more $2.39 each. What order size would be most economical ? a. 152 b. 121 c. 534 d. 155
Average daily demand (d) 130 cases Demand Standard deviation (σd) 20 cases Service level 94.0% Service level alternative 86.0% Lead tme, LT 6 days 1. What is the standard deviation of demand during lead time? Round your answer to one decimal place. _______ cases 2. What is the required safety stock at a 94 percent service level? Round your answer to the nearest whole number. _______ cases 3. What is the reorder point? Round your answer to the nearest whole number. _______ cases 4.What is the required safety stock at a 86 percent service level? Round your answer to the nearest whole number. _______ cases 5. What is the safety stock reduction? Round your answer to the nearest whole number. _______ cases
03) Halifax Souvenir Company currently orders 500 units four times each year. Each order costs $12 and each unit costs $1.20 per year to carry. On average, it takes 5 days to receive an order from the supplier. The company operates 250 days per year. Required: 1. What is the EOQ? 2. Calculate total annual inventory cost under EOQ. 3. What is the current inventory cost? 4. What is the re-order point?
Current decision to buy: Ross White's machine shop uses 300 brackets each month during the course of a year. This usage is relatively constant throughout the year. Currently, these brackets are purchased from a supplier 100 miles away for $25 each and the lead time is 2 days. The holding cost per bracket per year is $3.75 (15% of the unit cost) and the annual ordering cost per order is $18.50. There are 240 working days per year. Possible future decision to make in-house: Ross White is reconsidering his decision of buying the brackets and is considering making the brackets in-house. He has determined the set up costs would be $22.50 in machinist time and lost production time. Forty eight brackets could be produced in a day once the machine has been set up. Ross estimates that the cost (including labor and materials) of producing one bracket would be $22.85. The holding cost would be 12% of the cost. What is the EOQ given Ross' current decision to buy the brackets? What is the…
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