Ram Roy's firm has developed the following supply, demand, cost, and inventory data.Supply AvailableOvertime Subcontract155155205Period123RegularTime303540DemandForecast20 units$100$150$200$6405060nInitial inventoryRegular-time cost per unitOvertime cost per unitSubcontract cost per unitCarrying cost per unit per monthAssume 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).

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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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Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation. Yeast & Brewery Company Quantity 1-399 400-899 900+ Unit Price $16.91 $16.23 $15.69 Crust n Krumbs Company Quantity 1-499 500-999 1000+ Unit Price $16.23 What is the optimal order quantity? [Select] $15.91 $15.69 What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units Which supplier, based on all options with regard to discounts, should be used? [Select] [Select] What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number?…
How does the Wilson approach account for seasonality in inventory management?
PS Garden Variety Flower Shop uses 930 clay pots a month. The pots are purchased at $3.90 each. Annual carrying costs per pot are estimated to be 10 percent of cost, and ordering costs are $10 per order. The manager has been using an order size of 2,000 flower pots. a. What additional annual cost is the shop incurring by staying with this order size? (Round your optimal order quantity to the nearest whole number. Round all other intermediate calculations and your final answer to 2 decimal places.) Additional annual cost b.Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 2,000)? (Use the rounded order quantity from Part a. Round your final answer to the nearest whole percent.) About % of the storage space would be needed. Check my
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In the past, Taylor Industries has used a fixed-time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such as shortage costs. Here is a random sample of 20 of Taylor's items. ITEM NUMBER ANNUAL USAGE ANNUAL ITEM USAGE NUMBER 1 $ 1,700 11 $ 13,400 2 12,300 12 800 3 2,400 13 42,700 4 50,900 14 10,200 5 13,100 15 1,400 6 900 16 10,500 7 2,200 17 4,200 8 11,300 18 62,000 9 5,300 19 3,700 10 15,400 20 3,100 a. Classify each item in inventory using an ABC plan.
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.
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…
The seasonal demand for a particular product is given below: Period 1 2 3 4 5 6 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 following three methods: i) Lot-for-Lot ii) Wagner-Whitin algorithm iii) Fixed order quantity Which method you will chose to order and why? Please do fast... ASAP... do fast
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)?
es Garden Variety Flower Shop uses 930 clay pots a month. The pots are purchased at $3.90 each. Annual carrying costs per pot are estimated to be 10 percent of cost, and ordering costs are $10 per order. The manager has been using an order size of 2,000 flower pots. a.What additional annual cost is the shop incurring by staying with this order size? (Round your optimal order quantity to the nearest whole number. Round all other intermediate calculations and your final answer to 2 decimal places.) Additional annual cost b.Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 2,000)? (Use the rounded order quantity from Part a. Round your final answer to the nearest whole percent.) About % of the storage space would be needed. Check my
Subject: calculus

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