The reorder point is defined as the lead-time demand for an item. In cases of long lead times, the lead-time demand and thus the reorder point mayexceed the economic order quantity Q. In such cases, the inventory position will not equal the inventory on hand when an order is placed, and the reorderpoint may be expressed in terms of either the inventory position or the inventory on hand. Consider the economic order quantity model withD = 4,000, C = $40, C = $2, and 250 working days per year. Identify the reorder point in terms of the inventory position and in terms of the inventoryon hand for each of the following lead times.(a) 5 daysInventory positioninventory on hand(b) 15 daysinventory positioninventory on hand(c) 30 daysinventory positioninventory on hand(d) 60 daysinventory positionInventory on hand||||||

Introduction: To calculate the reorder point in terms of the inventory position and in terms of the…

Answered: The reorder point is defined as the…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Suppose demand is given by p = 1600 − x. Find the maximum revenue.
Describe the patterns in quantity sold and own and rival prices during this time period using basic descriptive statistics. Graphs are welcome as well. Take the logs of the variables, and estimate the demand function. Interpret the R-square. Interpret the coefficients for logP and logPsub Interpret the p-values associated with each independent variable Are consumers price sensitive? Why or why not? (be as precise as you can – you have estimates!). Does this price sensitivity make sense given the good we are examining? How sensitive are our consumers to changes in the rival good’s price? Explain in detail. Suppose we decide to charge a per ounce price of $2, while at the same time our rival charges a price of $2.15. All else equal, what would you expect sales to be? How confident are you in your forecast? Suppose we are charging a price of $2 and our current marginal cost is $1.50 Are we maximizing profits at this price? If not, should we raise or lower price? Why?
Suppose that the demand function for Brand X is P = 360 - 50Qd. Show whether going from 3 to 4 units is elastic or inelastic.
Suppose Becky gets a sales bonus at her place of work that gives her an extra $400 of disposable income. She chooses to spend $300 and save the remaining $100. From this, you can tell that Becky's marginal propensity to consume (MPC) is0.75 , and her marginal propensity to save (MPS) is0.25 . Mathematically, it must always be true that: Saving = a. Disposable income+Comsumption b. Comsumption-Disposable income c. Disposable income-Consumption Therefore, it must also be true that: MPS = a. 1-MPC b. 1+MPC c. MPC
Let’s assume that in Kansas, a family farmer sells wheat in a perfectly competitive market. After increasing the production of wheat from 220 bushels to 240 bushels, the total revenue of the farmer increases from $6,600 to $6,700. What was the marginal revenue of this increase in production in dollar?
Two competing companies produce mobile phones. Company A starts production at 1000 phones per week and plans to increase output by 200 each week. Company B starts production with 500 phones per week and plans to increase output by 20% each week. (a) Calculate the weekly production in weeks 1; 5; 10; 15. Plot the graph of weekly output for each producer on the same diagram (use Excel, if available). Estimate the week in which the output is the same for both firms. (b) Calculate the total production during the first 15 weeks for each firm.
Replace the March demand forecast 510 by C. During a 46-day period when there were 120 workers, the firm produced 1,700,000 cookies. Assume that there are 100 workers employed, and C cookies in inventory at the beginning of month 1 (January). Further assume that the inventory carrying cost cI = $0.10/cookie/month, employee hiring cost cH = $100/work, and cost of firing one worker cF = $200/worker. It is required that the inventory level at the end of month 12 (December) is 2C. use the Constant workforce plan (level strategy): Find the minimum constant workforce needed to meet all monthly demands (i.e, back order not allowed). Computer the total cost including employee hiring or firing cost (which occurs only at the beginning of month 1), and inventory carrying cost.

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