Suyuti Auto purchases a componentused in the manufacture of automobilegenerators directly from the supplier.Suyuti's generator production operation,which is operated at a constant rate, willrequire 1000 components per monththroughout the year (12 000 unitsannually). Assume that the orderingcosts are GH¢25 per order, the unit costis GH¢2.50 per component and annualholding costs are 20 per cent of thevalue of the inventory. Suyuti has 250working days per year and a lead time offive days. Answer the following inventorypolicy questions.a. What is the EOQ for this component?b. What is the reorder point?c. What is the cycle time?d. What are the total annual holding andordering costs associated with yourrecommended EOQ?10:41 AM /

EOQ or economic order quantity is a reordering technique which identify the optimal ordering…

Answered: Suyuti Auto purchases a component used…

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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Al Fursan Inc. needs 310 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it takes 16 work days to receive it. The annual holding cost is 25 % of purchase price The price RO1 per kg. The company is operating 6 days per week What is the minimum annual total holding and ordering cost? Round-up to the nearest integer?
please answer in details within 30 minutes.
Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag What will the optimal maximum inventory level on-hand end of each production run? Round- up to the nearest integer a. 6837 O b. 7534 10 c. 6737 Od.6500 Ce. None is correct
An Electronics parts manufacturer purchases circuit board for manufacturing electronic circuit board at the rate of OMR 20 per piece from a vendor. The requirements of these parts are 1000 per quarterly and the cost per placement of an order is OMR 40 and inventory carrying charges 10 percent yearly. Calculate the following The EOQ No. of orders in a year, and Time between two successive orders Average yearly cost of Inventory Total inventory cost Total Cost
Mr. Ahmed works in a bakery which operates days a week, 49 weeks a year. The bakery needs flour which is delivered to the bakery at 7.5 OMR each order. Mr. Ahmed needs 10 bags of four10 kg weight each bag. Each bag costs OMR 12. The annual holding cost per bag is 19% of the purchase price of bag. What will be the total annual variable cost, if banks only offer maximum of OMR 1500 for purchasing in a single order? a 368.2 b.318.9 c.320.55 d. 331.80 e.None is correct
Norris Harrell’s Computer Store in San Fernando sells a printer for $200. The annual demand for this is 600 units, with a standard deviation of 1.5 units daily. The holding cost is $20, while the cost of ordering is $60 per order. Currently the company is ordering 12 times per year. There are 250 working days per year and the lead time is 10 days. a. Given the current policy of ordering, what is the total ordering and holding costs? b. If the company uses the absolute best inventory policy, what would be the total ordering and holding costs?
The electrolyte drink for our beloved NMSU soccer team average normally distributed demand of 5 units and a standard deviation of 1 unit. Lead time for replenishment is fixed at four days. (a) What is the reorder point if there is no safety stock? (b) What is the reorder point if the service level is 80 percent? (c) How much more safety stock is required if the service level is raised from 80 percent to 90 percent?
K Chicago's Hard Rock Hotel distributes a mean of 1,100 bath towels per day to guests at the pool and in their rooms This demand is normally distributed with a standard deviation of 95 towels per day based on occupancy The laundry firm that has the linen contract requires a 3-day lead time. The hotel expects a 99% service level to satisfy high guest expectations. Refer to the standard normal table for z-values. a) What is the reorder point? 3683 towels (round your response to the nearest whole number) towels (round your response to the nearest whole number). b) What is the safety stock?
Chicago's Hard Rock Hotel distributes a mean of 900 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 2-day lead time. The hotel expects a 95% service level to satisfy high guest expectations. Refer to the standard normal table for z-values. a) What is the reorder point? b) What is the safety stock? towels (round your response to the nearest whole number). towels (round your response to the nearest whole number). Z 0.38 0.50 0.67 0.84 1.04 1.28 1.41 1.56 1.65 1.75 2.06 2.33 Pr(Z) 65 69 75 80 85 90 92 94 95 96 98 99
A bookstore stocks a limited-edition series of collectible comic books, which are considered perishable due to their limited availability and potential for damage if not stored properly. This particular comic book series is highly sought after by collectors and sells for $50 per issue. It comes with a high annual inventory holding cost rate of 30% of its SKU value. The estimated ordering cost is $100 per order. The store anticipates an annual demand of 500 issues for the upcoming year. The lead time for orders is four weeks, assuming 52 weeks in a year. a) Set up a fixed-order-quantity system computing: the EOQ and the reorder point (r). b) Set up a fixed-period system computing: the review period (T) and the replenishment level (M). Round the review period to the next highest number. c) How much more does it cost to hold inventory in an FPS vs. an FQS?
The annual demand for the Super Thrive brand plant food manufactured by Cumberbatch and Dunst Indoor Plants Company is 120,000 pounds. The annual holding cost (also known as carrying charge) is $0.05 per pound, and Operations Manager Kirsten Benedict has calculated the cost of setting up machinery for making the plant food to be $20. 1) What is the annual holding (carrying) cost for the EOQ that you calculated ? plz send answer fast.
Braneast Airlines uses 500 taillight per year. Each time an order for taillights is placed, an ordering cost of $ 5 is incurred. each light costs 0.40 $ , and the holding cost is 0.08 $ per unit per year. Assume that the demand occurs at a constant rate and shortages are not allowed. What is the EOQ?

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