The annual demand for a product of XYZ company is 12.000. The cost of ordering this product is CU25 and the holding cost is CU0.5/(piece year). The company in question wishes to follow the "Pending Order" stock policy and the holding cost is CU5/(piece year). The lead time for this product is 2 days and it is worked for 300 days a year. In this case, calculate the economic order quantity, the highest pending order quantity and the highest stock level
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The annual demand for a product of XYZ company is 12.000. The cost of ordering this product is CU25 and the holding cost is CU0.5/(piece year). The company in question wishes to follow the "Pending Order" stock policy and the holding cost is CU5/(piece year). The lead time for this product is 2 days and it is worked for 300 days a year. In this case, calculate the economic order quantity, the highest pending order quantity and the highest stock level
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- Furnitures sells office chairs ordered from its flagship store. It costs $100 to place an order, and the lead time is two weeks. Demand during lead time is N(40, 1.96). in future goodwill. It pays $60 for each chair and sells it for $100. The annual holding a chair inventory is 30% of its purchase cost. Furnitures estimates that each stockout causes a loss of $50 a) Assuming that all demand is backlogged, what are the reorder point and the safety stock level? b) To meet 99% service objective, what should be the safety stock level for Type 1 Service? For Type 2 Service?The economic order quantity of Geo Co. is determined to be 450 units and it sells its only product for P5 each. Every time the company orders, it incurs P50. Holding cost is P10. It takes 3 days to make and receive an order. How much sales should Geo Co. for this economic order quantity to be plausible? (Using 360 day per year)Daily demand for a product is 10 units. The standard deviation of demand during the review and lead time is 20 units. The review period is 30 days and the lead time is 14 days. At the time of review there are 150 units in stock. If the probability of stockout should not exceed 2%, how many units should be ordered?
- The demand for a certain product is random. It has been estimated that the monthly demand of the product has a normal distribution with a mend of 390units. The unit price of product is ETB 25. Ordering cost is ETB 40 per order and inventory carrying cost is estimated to be 35 percent per year. Calculate economic order quantity (EOQ).A company has an annual demand of 16,000 products. The products cost $2 each. Ordering and transport costs amount to $200 per order. The annual cost of holding one product in stock is estimated to be $1.20 . Assume that the company adopts the EOQ as its order quantity and it has to have half of the EOQ as inventory on hand when an order is placed. How many weeks does it take for an order to be delivered to the company? (1 year = 52 weeks) A) PPE may be credited by 2 million dollarsB) Revaluation OCI may be credited by 3,3 million dollarsC) Accumulated depreciation may be debited by 4 million dollarsD) Accumulated depreciation may be credited by 1,3 million dollarsE) Other (Please Specify)A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Co probability distribution with μ = 25 and σ = 5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.) = $23.50 and C = $9. The demand exhibits some variability such that the lead-time demand follows a normal (b) What are the reorder point and safety stock if the store desires at most a 4% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder point safety stock (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)
- A hospital must order the drug Porapill from DaisyDrug Company. It costs $500 to place an order and $30 toreview the hospital’s inventory of the drug. Annual demandfor the drug is N(10,000, 640,000), and it costs $5 to holdone unit in inventory for one year. Orders arrive one monthafter being placed. Assume that all shortages are backlogged.a Estimate R and the number of orders per year thatshould be placed.b Using the answer in part (a), determine the optimal(R, S) inventory policy. Assume that the shortage costper unit of the drug is $100.XXX Company stocks part AA at its warehouse for supplying field service offices. The yearly demand for these parts is 2600 units. XXX Company estimates its annual holding cost for this item to be $ 10 per unit. The cost to place and process an order is $30. The company operates 300 days per year, and the lead time to receive an order is 10 days. The standard deviation of the demand is 15. a. Find the economic order quantity b. Find the total cost c.Determine the ROP needed if the manager wants an annual service level of 99.9 percent. 12 Z- 3.1 15The demand faced by CBA company each week is estimated to be normally distributed with a mean of 1000 units and a standard deviation of 250. Lead time of delivery is fixed at 2 weeks. Ordering cost is $800 per order, variable cost per unit ordered is $4, the inventory carrying charge is 20% per year. Assume 50 weeks per year. CBA would like the probability to satisfy customer demand be 95%. Find the (Q,R) policy. If the leadtime is 2 weeks and a standard deviation of 1 week. Find the (Q,R) policy. What is the impact of the weekly demand’s standard deviation on the (Q,R) policy?
- A firm orders on average 400 wheels each month. Demand is normally distributed with standard deviation of the monthly demand being 20 wheels. The ordering cost is $8 per order. The cost to buy one wheel is $4 per wheel. Annual carrying costs are 50% of unit cost. The supplier lead time is 2 operating days. The firm operates 240 days per year, in other word, the firm operates 20 days each month. Each order is received from the supplier in a single delivery. There are no quantity discounts. 1h. What is the standard deviation of demand during lead time period?A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Co = $24.50 and Ch = $7.The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with ? = 25 and ? = 5. (a)What is the recommended order quantity? (Round your answer to the nearest integer.) (b)What are the reorder point and safety stock if the store desires at most a 4% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder pointsafety stock (c)If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost minimizing solution for this product each year? ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.