REQUIRED Use the information provided below to determine the following: 5.1.1 EOQ if discounts are not available 5.1.2 The quantity that should be ordered considering the discounts that are available INFORMATION The following information was provided by AB Suppliers for a product that it sells: Annual demand 200 000 units Unit cost R50 Fixed cost per order R100 Annual carrying cost per unit 20% of unit cost The supplier offered a discount scheme as follows: Discount 0% 4% 5% 6% Order size 0-3 199 3 200-7999 8 000 - 19 999 20 000+

REQUIRED Use the information provided below to determine the following: 5.1.1 EOQ if discounts are not available 5.1.2 The quantity that should be ordered considering the discounts that are available INFORMATION The following information was provided by AB Suppliers for a product that it sells: Annual demand 200 000 units Unit cost R50 Fixed cost per order R100 Annual carrying cost per unit 20% of unit cost The supplier offered a discount scheme as follows: Discount 0% 4% 5% 6% Order size 0-3 199 3 200-7999 8 000 - 19 999 20 000+

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Micro-Electronics Warehouse Headset and Webcam Sale Item Type Reg. Price After Savings Price BuddyChat 200 Headset $34.72 $24.40 BuddyChat 300 Headset $41.27 $34.91 BuddyCam HD Webcam $83.54 $61.46 You have decided to purchase the headset with the greatest markdown percent and the BuddyCam HD webcam in order to take advantage of an "Extra $15 Rebate" offer when you purchase both. What is the markdown percent on your total purchase including the rebate?
Calculate total annual cost for the alternative suppliers for aproduct with following characteristics: montly demand; mean: 5000, standard deviation 2000 Holding cost: 30% Cycle service level: 98% Using EOQ formula, find the lot size. Don’t forget to add ordering cost to the total cost! Supplier 1 Supplier 2 Supplier 3 Ordering Cost(per order ) 1000 2000 5000 Cost 10 9 8 Average Lead Time ( month ) 0.5 2 2 Lead time std deviation ( month ) 0.5 1 2
can you please help me answer this question.... Rebar Company prepared the following analysis of its year-end inventory on December 31. First, determine the total lower of cost or market value for each product in Rebar Company's inventory. Second, prepare the journal entry needed at year-end to value the inventory at LCM, if applicable. Historical Cost Replacement Cost Product Quantity per unit per unit A 17 $430 $499 B 140 325 299 C 38 75 69
ABC analysis on the following set of products Item Annual Demand Unit CostA 211 800 R9B 390 100 R90C 003 450 R6D 100 400 R100E 707 85 R2,000F 660 250 R320G 473 500 R75H 921 100 R75 Soft goods department sells 175 units per month of a certain large bath towel. The unit cost of a towel to the manufacturer is R2.50 and the cost of placing an order has been estimated to be R12.00. There is an inventory carrying charge of 27% of the unit cost per year. What is the optimal order quantity, the order frequency, and the annual holding and setup cost. If the ordering cost can be cut to R4.00, what will be the new economicorder quantity, the order frequency, and annual holding and setup costs.
Short answer question
Explain two potential issues that may develop when using the trading EOQ model with quantity discount.
32 A local club is selling Christmas trees and deciding how many to stock for the month of December. If demand is normally distributed with a mean of 100 and standard deviation of 20, trees have no salvage value at the end of the month, trees cost $20, and trees sell for $50 what is the service level? Select one: a. .40 b. .84 c. .60 d. .20 e. unable to determine given the above information
Q1) Describe the company's inventory management system?
X Ltd buys & uses a component for production at 10/piece Annual requirement is 2000 pieces. Carrying cost of inventary is 10% per annum & ordering cost is 40/order. The purchase manager proposes that a single order to be placed for the entire annual requirement. If X Ltd order 2000 piece at a time we get a 3% discount. Evaluate this proposal & make your recommendation
Given the following list of items,(a) Calculate the annual usage cost of each item.(b) Classify the items as A, B, or C.
A retailer stocks baseball caps for three different teams. Information for each can be found in the table below. How much potential sales revenue are they losing each week due to stockouts? 864 1158 1366 1540