This question earns extra credit up to 8pts. The problem requires using the transportation method of linear programming. The production planning period for flat-screen monitors at Louisiana's RaoElectronics, Inc., is 4 months. Cost data are as follows:Regular-time cost per$60monitor$110Overtime cost per monitorSubcontract cost per$120monitorCarrying cost per monitor$4per monthFor each of the next 4 months, capacity and demand for flat-screen monitors are as follows:Period三Month 1 Month 2 Month 3a Month 4Demand2,0002,6001,4002,300СарacityRegulartime1,6001,6006501,700Overtime400500200500700600700600SubcontractaFactory closes for 2 weeks of vacation.CEO Mohan Rao expects to enter the planning period with 400 monitors in stock. Backordering is not permitted (meaning, for example, that monitors produced in the second month cannot be used in the firstmonth to cover first month's demand).Minimizing total cost using the transportation method, the total cost is $ (enter your response as a whole number).

Given- Regular time cost = $60Overtime cost = $110Subcontracting cost = $120Inventory Holding cost =…

Answered: This question earns extra credit up to…

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...

See similar textbooks

Similar questions

KLG is a textile manufacturer in Shanghai. They want to expand their t-shirt business into the United States. They have dedicated a factory in KLG to making the tshirts, and the production rate at that facility is 250 pallets of t-shirts per day. KLG's factory uses a just-in time production model so they store no safety stock at their manufacturing facility in Shanghai, The cost of space at the Shanghai facility is $30 per pallet per year. Each pallet has a value of $2000. KLG is opening a distribution center in Los Angeles from which they will serve the American demand for 250 pallets of t-shirts per day. They keep a safety stock of 1200 pallets of t-shirts at the distribution center. The cost of space at the LA facility is $40 per pallet per year. Each pallet has a value of $2200. KLG hires you as a logistics consultant to help them decide whether to transport the t-shirts from Shanghai to Los Angeles using sea or air. KLG uses a holding cost rate of 20%. FlyHigh Airline has…
Martina is in charge of ordering brake pads for an auto shop. The daily demand for brake pads is normally distributed with an average of 40 brake pads and a standard deviation of 8 break pads. Currently, it takes 4 days between when Martina places an order for new brake pads and when the order is received. Currently, Martina orders new break pads when there are 184 break pads left in stock. 1) What is the average demand during lead time? 2) What is the standard deviation of demand during lead time? 3)What is the service level provided by Martina's auto shop?
Evaluate the ethical dilemmas in inventory optimization, particularly concerning product shelf life, waste reduction, and environmental impact.
Help need. management accounting Lebar Daun Sdn Bhd is planning to use the economic order quantity model to determine the optimal order levels of raw materials. Material Z is consumed evenly over the year and the current usage is 120,000 units. The material is purchased in boxes and each box contains 12 units of material Z, at a price of RM252 per box. A safety stock of 200 boxes is kept. The cost of placing and handling orders is estimated to be RM6,300, which is based cost incurred for similar orders that have already made. The cost of RM6,300 was for 30 orders. The inflation of 2 per cent should be added to the above ordering costs. Besides, the company estimates to be charged the transporation cost of RM15 per order. It should be assumed that ordering costs change in proportion to the number of orders place. Other costs which relate to material Z such as insurance, interest and space costs for a year, were calculated at 15 % of the purchase price. Required: a. Calculate the order…
This is a model most suitable when inventory is filled in in the first Monday of each month only at fixed intervals.
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)
Mancuso's Music Store is a small business that sells instruments, books, stands, and other music-related products. The owner always likes to have extra music stands in storage in case a large order arrives suddenly - typically 2 weeks' worth of sales. When an order is placed, the delivery takes 5 business days to arrive. The owner has studied working capital management and estimates that the economic order quantity for music stands is 1500 for each time an order is placed. The fixed cost of an order is $210 and the carrying cost per stand per year is $1.70. How many music stands will the store have in stock immediately after a shipment arrives? Assume the store is closed on Sundays (a 6-day business week), holidays, and a few vacation days, so that the store has 300 business days per year. Give your answer rounded to the nearest whole number of music stands. Do not include comma separators in your answer.
ATK-Auto obtains one of the critical parts from its sub-constructor located in China. Daily demand at the production plant in Roma is normally distributed, with a mean of 2100 and a standard deviation of 450 units. The target CSL is 95 percent. The company is considering two different modes of transportation from China: Sea or Air. Sea transportation results in a lead time of 30 days and costs $1.5 per part. Air transportation results in a lead time of 4 days and costs $8.50 per part. Each part costs $350 and ATK-Auto uses a holding cost of 25 percent. Given the minimum lot sizes, ATK would order 11,000 parts at a time if using sea transport and 400 parts at a time if using air transport. Assume that ATK pays for the parts when the order is placed.a. Assuming that ATK follows a continuous review policy, what reorder point and safety inventory should the warehouse aim for when using sea or air transportation?b. How many days of cycle inventory does ATK carry under each policy?c. Which…
A what is the inventory turnover for the hamburger patties? B. On average, how many days of supply are on hand?
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. Maribel is considering installing ice cream stalls on Turtle Beach. The length of the beach is 5 miles long. On average, in a week, there are 1,000 subathers that come to the beach and each value an icecream at $5. Transportation costs are $2.5. Each icecream costs $0.5 to make and there are $40 as a fixed maintenance cost per stall. A )Find the optimal number of stalls for Maribel? B) What is the profit at optimal number of stalls?
Determine the optimal Q and TC given the following information: D = 30,000 boxes Ch = $2 Co $300 Discount schedule: Quantity (boxes) Price ($ per box) 43 1 to 9,999 10,000 to 14,999 41 15,000 to 19,999 38 20,000 or more 36 Show complete solution.

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS