Ram Roy's firm has developed the following supply, demand, cost, and inventory data.Supply AvailableRegularDemandPeriodTimeOvertimeSubcontractForecast14015403515603301545Initial inventoryRegular-time cost per unitOvertime cost per unitSubcontract cost per unitCarrying cost per unit per month20 units$100$150$250$4Assume that the initial inventory has no holding cost in the first period and backorders are not permitted.Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $(enter your response as a whole number).

Given data; Regular time cost 100 $/unit Overtime cost 150 $/unit…

Answered: Ram Roy's firm has developed the…

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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Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a highspeed modem priced at $370 per unit, the average weekly demand at each distribution center is 65 units. Average shipment size to each distribution center is 450 units, and average lead time for delivery is 2 weeks. Each distribution center carries 2 weeks' supply as safety stock but holds no anticipation inventory. a. On average, how many dollars of pipeline inventory will be in transit to each distribution center? $: (Enter your response as an integer.) b. How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers? units. (Enter your response as an integer.)
1) What is the total demand of an enterprise with an economic order quantity of 1,500 units, a cost of 11.250 TL for each order, and 75 TL for one unit of inventory?a) 20,000b) 17,500c) 7,500d) 12,500f) 2,500 2) What is the total inventory cost of this business?a) 200,000b) 239,000c) 185,250d) 168,750e) 218,500
ABC Company purchased its inventory at a lump price of P20,000. Relative sales value for each type of inventory was: Inventory XX, P10,000 Inventory YY, P4,000 Inventory ZZ, P10,000 How much would be the cost assigned to inventory XX, YY an ZZ respectively? 10,000. 4,000 and 10,000 respectively 10,000, 4,000 and 8,333 respectively 8,333, 3,333 and 8333 respectively 6667, 6667 and 6667 respectively
Q1) Cannon sells 22mm lens for digital cameras. The manager considers using a continuous review policy to manage the inventory of this product and he is planning for the reorder point and the order quantity in 2021 taking the inventory cost into account. The annual demand for 2021 is forecasted as 400+10*6 and expected to be fairly stable during the year. Other relevant data is as follows: The standard deviation of the weekly demand is 10. Targeted cycle service level is 90% (no-stock out probability) Lead time is 4 weeks Each 22mm lens costs $2000 Annual holding cost is 25% of item cost, i.e. H=$ 500. Ordering cost is $1000 per order Using your student number calculate the annual demand. (e.g., for student numberBBAW190102, the last digit is 2 and the annual demand is 400+10*6=420) Using the annual demand forecast, calculate the weekly demand forecast for 2021 (Assume 52 weeks in a year)? What is the economic order quantity, E0Q? What is the reorder point and safety stock? 5-…
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
Objectives of Inventory Control in Procter & Gamble.
Replenishment of Regular Stocks of Farmacia Romy & Fe The following are the details regarding the stocks on Paracetamol tab 500 mg of Farmacia Romy & Fe: (a) 150 tablets are sold daily (b) 4 boxes of 100s are on hand as stocks of the drugstore (c) Inventory is every 30 days What should be the Order Quantity for the Paracetamol product? 150 tablets 400 tablets 4,500 tablets 4,900 tablets 50 boxes None of the given choices How is the quantity to be ordered computed or determined? Order Quantity = Average Daily Movement x (X)Days + Regular Order Order Quantity = (Average daily off take x Inventory days ) – Stock-on-hand Order Quantity = (Average daily off take x Inventory days ) + Stock-on-hand Order Quantity = Average Daily Movement x (X)Days -- Regular Order None of the given choices
Echo Airplane buys and sells its products. One of them has the following demand forecasts for the next 5 months. data: month 1= 55 month 2= 85 month 3= 105 month 4= 120 month 5= 115 It costs $20 to place an order, the product cost is $2.00, and the monthly cost of holding inventory is 12.5%. Use the minimum unit cost (LUC) heuristic to determine the ordering sequence for following monthly demands a) Calculate the cost of the heuristic Please do fast ASAP
The amount of denim used daily by the Southwest ApparelCompany in its manufacturing process to make jeans isnormally distributed with an average of 4000 yards ofdenim and a standard deviation of 600 yards. The lead timerequired to receive an order of denim from the textile mill is a constant 7 days. Determine the safety stock and re-order point if the company wants to limit the probability of a stockout and work stoppage to 5%.
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?
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)?
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