The manufacturer of a popular personal computer has orders fromtwo dealers. Dealer D, wants at least 40 computers, and dealer D₂wants at least 17 computers. The manufacturer can fill the orders fromeither of two warehouses, W₁ or W₂. There are 31 computers onhand at W₁, and 33 at W₂. The costs to ship one computer to eachdealer from each warehouse are shown to the right. Completeparts (a) and (b).D₁ D₂$15$12W₁ $9W₂ $6(a) How should the orders be filled to minimize shipping costs?Warehouse W₁ should ship computer(s) to dealer D, andcomputer(s) to dealer D, and computer(s) to dealer D₂. The minimum cost will be $(Simplify your answers.)computer(s) to dealer D₂. Warehouse W₂ should ship

Warehouse management includes all those activities that are important for the storing of goods in an…

Answered: The manufacturer of a popular personal…

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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Fuego Limited is a table-glass retailer located in Vancouver. The company purchases glasses from Anderson PLC. The details of the table glasses are as follows: The purchase price per glass – $3,000 Cost of an order - $500 The annual cost of carrying a glass - 2% of the purchase price Monthly Demand - 1,250 Units The company has been offered a discount of 1% on the price of a table glass if the lot size is 3,000 table glasses at a time. Required: i. Calculate the Economic Order Quantity. ii. Calculate the total inventory cost. iii. Draw a graph and discuss the behavior of the total inventory holding cost, total ordering cost, and total cost for the given scenario. iv. Advise whether the quantity discount offer can be accepted (Assume that the inventory carrying cost does not vary according to the discount policy)
Another approach that might be used relates to the time before a breakdown occurs. Suppose that the average time before breakdown is normally distributed and has a mean of3 weeks and a standard deviation of .60 week. If breakdown cost averages $1,000 and preventive maintenance costs $250, what is the optimal maintenance interval?
James Calender is the buyer for "Joe's Radio Hut", a local electronics chain that has developed a loyal customer base with its quality service and competitive pricing. Due to the short selling lives of electronics products, James has only a single opportunity to order the new GO multifunction photo printer and hair dryer. The item sells for $139.24 and the per unit cost is $128.93. Any units remaining at the end of the season must be disposed of at a cost of $18.04. Demand for the item is believed to be normally distributed with a mean 605 and standard deviation 145.2. What is the cost of shortage? (specify answer to 2 decimal places)What is the critical fractile? (specify answer to 3 decimal places)What is the cost minimizing order quantity? (specify answer as a whole number)
7
Need both parts
Exercise 2: The demand per year (D) for product X is 12,100 units. The costs of placing an order (S) are $4.50. The unit cost (C) of the item is $25.00. The maintenance cost (H) per unit per year is 30% of the item's cost. 1. Use the economic order quantity (EOQ) model to determine: *Optimal quantity to order* The expected number of orders*Optimal time between orders*The total annual cost of maintaining that optimal amountNOTE: Show calculations of how you arrived at each amount 2. Answer, what are the potential benefits of using EOQ analysis for inventory management? How can you help businesses strike a balance between inventory holding costs and ordering costs?
4 (Using the same problem) A vendor for the local ballpark food stand is questioning whether to stock his concession with a large or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). What is the Expected Monetary Value (EMV)? Alternatives Large Inventory Small Inventory Probability A) $68,400 O B)-$20,000 O C) $10,000 O D) $51,500 O E) $78,400 Large Crowd $220,000 $90,000 .20 PROFIT ($) Average Crowd $50,000 $70,000 .50 Small Crowd -$2,000 -$5,000 30

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