The assumptions of the production order quantity model are met in a situation where annual demand is 5000 units, setup cost is $30, holding cost is $15 per unit per year,the daily demand rate is 20 and the daily production rate is 200. What is the production order quantity for this problem?149 units200 units20 units716 unitsNone of the choices is correct

Production order quantity refers to the order size that is produced in one batch of production. It…

Answered: The assumptions of the production order…

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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In the basic EOQ model, if annual demand doubles, the EOQ will O a. increase by about 41.42 percent O b. decrease by 48.42% O c. double O d. None of these O e. be about 70.7 percent of its previous amount
A demand driven model will likely lead to higher inventory levels due to safety stock. True False
A manufacturer produces umbrellas. The production rate is 500 per day. The monthly demand for umbrellas is 2100 (and so usage per day is 70). Setup cost is $60 and holding cost is $1 per umbrella per month. What is the economic production quantity? (Use the nearest whole number) OA. 775 OB. 541 OC. 835 OD. 620 OE. 894 OF. 693 O.G.502 OH.899
The Ostrya Virginiana furniture company produces wooden chairs. The demand for chairs is 500 units per month. The setup cost for production is $300, and the holding cost is $12 per chair per year. The production rate is 100 chairs per day. Assume 30 working days per month. Determine the following: a) D, S, H, p, u b) EPQ c) Run time
11. A company that produces hair dryers makes its heating elements in house. Those pieces can be produced at a rate of 800 per day. Their total hair dryer demand reaches to 50000 per year and the company operates 250 days in a year. Then it can be concluded that they can use 50000/250= 200 units/day in order to ship to the customers. The assembly continues whole year uniformly. Carrying(holding) cost is 0,5 TL and setup cost for a run is 35 TL. a. Compute the economic production quantity (EPQ). b. Compute the cycle time. c. Compute the run time.
A manufacturer’s annual demand is 6000 units. The current units per order is $100. The setup cost is $50 per order and the holding cost is $7 per unit. The cost per unit is $2.50. The Number of work days is 250 per year. What is the annual setup cost? What is the annual holding cost? What is the optimal order quantity (EOQ)? Using the EOQ, how many orders should be placed per year? What is the interval between orders? What is the inventory administration cost? What is the total cost of inventory?
With a normal demand and normal lead-time, increasing the order lead-time results in which of the following? Lower expected costs. Higher service levels. Higher stockout probability. All of the above.
Which of the following is one of the assumptions of EOQ model? Group of answer choices Annual demand is known and even throughout the year Orders are received partially There are quantity discounts Multiple items are involved Lead time varies
20 Lead time for one of your fastest-moving products is a) What would be an appropriate reorder point? 100 days. Demand during this period averages units per day. units (enter your response as a whole number). b) How does your answer change if demand during lead time doubles? c) How does your answer change if demand during lead time drops in half? units (enter your response as a whole number). units (enter your response as a whole number).
The daily demand for printer paper at the School of Business is approximately normal with a mean of 15.2 boxes and a standard deviation of 1.6 per day. The Administrative Assistant reviews the inventory every 30 days, and the lead time is 5 days. The division set a policy of satisfying 96% of the demand for paper. If there are 125 boxes of printer paper in inventory at the beginning of this review period, how many boxes of printer paper should be ordered? What is the variance of demand during the review period plus the lead-time period? What is the standard deviation of demand during the review period plus the lead-time period? A. Variance = 76.80 Standard deviation = 8.76 B. Variance = 89.60 Standard deviation = 9.47 C. Variance = 9.47 Standard deviation = 89.60 D. Variance = 12.8 Standard deviation = 3.58
Explore the role and implications of safety stock within the framework of the Wilson approach for effective inventory control.
ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings. A True B False

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