Ram Roy's firm has developed the following supply, demand, cost, and inventory data.Supply AvailableRegularDemandPeriodTimeOvertimeSubcontract Forecast14015550230155603402056030 units$100$150$250$6Initial 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).

To minimize costs while meeting demand, Ram Roy's firm must allocate production capacity effectively…

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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Explain why is necessary to maintain inventory control?
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.
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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 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
The following data represent the beginning inventory and, in order of occurrence, the purchases and sales of Meow, Inc. for an operating period. Units Unit Total Units Cost Cost Sold Beginning Inventory 50 $62 $3,100 Sale No. 1 40 Purchase No. 1 30 50 1,500 Sale No. 2 32 Purchase No. 2 40 44 1,760 Totals 120 $6,360 72 Assuming Meow, Inc. uses LIFO perpetual inventory procedures, the ending inventory cost is:
EOQ, reorder point, and safety stock Alexis Company uses 937units of a product per year on a continuous basis. The product has a fixed cost of $44 per order, and its carrying cost is $4 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate daily usage.) c. Determine the reorder point. d. Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity.
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?
Discuss the challenges of inventory control.
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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