Supply Chain Coordination problemZamatia makes sunglass at a cost of $35 and sells them to UmbraVisage (UV) for $75. UV sells them for$115 and salvages left over inventory for $25 per unit. Demand is Normal with mean 250 and standarddeviation 125.a. What should be the optimal ordering quantity for UV?b. What is the total supply chain profit (UV & Zamatia) given the ordering quantity computed in a?c. What should be the optimal ordering quantity to maximize the total supply chain profit (UV andZamatia)?

Supply chain coordination (SCC) is a viable way to deal with further develop supply chain (SC)…

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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ECUR UMIC ORDER QUANTITY CALCULATIONS (2 QUESTIONS) Company uses 800 units of a product per year on a continuous basis. The product year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed and the a safety stock of 5 days usage in inventory. has carrying costs of $50 A. Calculate the economic order quantity a. 98 B. Determine the reorder a. 150 days (3 CASH DISCOUNTS point. ONS) (Assume (EOQ). a 360-day year.) per unit per firm requires
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-…
Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost Order cost Annual holding cost Annual demand Average weekly demand Standard deviation of weekly demand. Lead time. Service probability Optimal order quantity Reorder point units units VALUE $12.00 $194.00/order 21% of item cost 24,700 units 494 /week 20 units 2 week 95% a. Determine the order quantity and reorder point. (Use Excel's NORMSINV() function to find your z-value and then round that z- value to 2 decimal places. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.)
The distribution manager for Putnam Corporation is trying to establish the most economic ordering policy for the standard model of its best-selling microwave oven. He has control of the finished goods warehouse for the factory and must satisfy wholesaler demand. The following information is available: Wholesale value $100 Annual demand 50,000 units Std. Deviation of Demand 30 units per day Working year 250 days Production lead time 9 days Ordering cost for production $1,800 Holding cost per unit per year 20% of value Desired service level 96 percent: If Putnam wishes to use the periodic review system, what should be the safety stock, reorder point? If the current on hand inventory is 1,000 units, how many units should be ordered?
2. (Quantity Discount) County Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90 per syringe because of security and theft. The hospital supply firm offers the following quantity discount pricing schedule. Qty 0-9,999 10,000-19,999 20,000-29,999 30,000-39,999 40,000-49,999 50,000+ Price $ 3.40 $ 3.20 $ 3.00 $ 2.80 $ 2.60 $ 2.40 What is best order quantity for syringes that minimize total cost?
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?
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)?
The distribution manager for Divine Corporation is trying to establish the most economic ordering policy for the standard model of its best-selling microwave oven. He has control of the finished goods warehouse for the factory and must satisfy wholesaler demand. The following information is available: Wholesale Value $100 Annual Demand 50,000 units Standard Deviation of Demand 30 units per day Working Year 250 days Production Lead Time 9 days Ordering Cost for Production $1,800 Holding Cost per unit per year 20% of value Desired Service Level 96 percent If Divine decides to use a continuous review system, what should be economic order quantity, safety stock, and the reorder point? If on the other hand, Divine wishes to use the periodic review system, what should be the safety stock, reorder point? If the current on hand inventory is 1,000 units, how many units should be ordered?
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University Drug Pharmaceuticals orders its antibiotics every two weeks (14 days) when a salesperson visits from one of the pharmaceutical companies. Tetracycline is one of its most prescribed antibiotics, with average daily demand of 2,000 capsules. The standard deviation of daily demand was derived from examining prescriptions filled over the past three months and was found to be 800 capsules. It takes f ive days for the order to arrive. University Drug would like to satisfy 99 percent of the prescriptions. The salesperson just arrived, and there are currently 25,000 capsules in stock.How many capsules should be ordered?
Discuss what is meant by ABC analysis of inventory.Name several measures that can determine ABCstatus

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