What is the carrying cost for the toy manufacturer? A toy manufacturer uses 100,000 rubber wheels per year for itsdump truck series. The firm makes its own wheels, which it can produce at a rate of 12,000 per day. The toy trucks areassembled uniformly over the entire year. Carrying costs is $2 per wheel a year. Setup cost for a production run ofwheels is $75. The firm operates 240 days per year. D = 100,000 wheels/year S = $75 H = $2 per wheel/year p = 12,000wheels/day u = 100,000 wheels per 240 days or 417 wheels/day$2691$1500$2547$2371

Given data is Annual demand (D) = 100,000 wheels Production (p) = 12000 per day Carrying cost (H) =…

Answered: What is the carrying cost for the toy…

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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Unaiki manages the inventory for Hine's kids collection. She's had too many stockouts lately and is worried about poor customer service. Therefore, she is considering a change to the current inventory control system for kids track pants. She gathers the following information: average demand: 250 pairs/week lead time: 2 weeks order cost = $75 per/order unit cost: $21.50 carrying charge rate = 18% desired service level = 95% standard deviation of weekly demand: 40 number of weeks per year: 52 Unaiki decides to use a fixed order quantity system. a. What is the Economic Order Quantity? b. What are the total annual order and inventory-holding costs for the EOQ? c. What should the reorder point be to have a 95% service level? d. Help Unaoiki understand her new order logic: In order to stay in stock 95% of the time. she should place an order for ________ pairs when ____________.
Wood County Hospital consumes 1,000 boxes of bandages per week. The price of bandages is $36 per box, and the hospital operates 52 weeks per year. The cost of processing an order is $12, and the cost of holding one box for a year is 20 percent of the value of the material. a. The hospital orders bandages in lot sizes of 700 boxes. What extra cost does the hospital incur, which it could save by using the EOQ method? (Enter your response rounded to two decimal places.) b. Demand is normally distributed, with a standard deviation of weekly demand of 100 boxes. The lead time is 3 weeks. Refer to the standard normal table for z-values. What safety stock is necessary if the hospital uses a continuous review system and a 95 percent cycle-service level is desired? (Enter your response rounded to the nearest whole number.)
Popular Company places 10 orders per year with its supplier. Each order is for an amount exactly equal to the EOQ. Popular’s order cost has been determined to be $50 per order. Popular carries no safety stock at all. What is Popular’s order cost per order?
First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 11,200 pages of documents. The lead time for paper delivery is normally distributed with a mean of 4 days and a standard deviation of 1 day. A 96% service level is expected. Compute First's ROP. Refer to the standard normal table for z-values. The reorder point is documents (round your response to the nearest whole number).
Walmart experiences a demand of 5 units per day for its LED TVs. The lead time for re-stocking LED TVs is 10 days. What is the Re-Order Point? (Assume that the demand and lead time are known with certainty, that is, they are not uncertain) 50 units 2 units 50 days 2 days
Daily demand for a product is 138 units, with a standard deviation of 36 units. The review period is 10 days and the lead time is 6 days. At the time of review, 58 units are in stock. If 98% service probability is desired (corresponding z = 2.05), how many units should be ordered? (please rounded to integer)
A Manufacturing company's average demand is 2000 plastic cups per week and the standard deviation is 150 plastic cups . As per inventory policy , company call for replacement order of 10000 plastic cups and average lead time is 2 days . If company maintains the 95 % service level means what is the safety stock ? 250 Plastic cups 350 Plastic cups 325 Plastic cups 220 Plastic cups
In an ABC system based on revenue, C items individually make the lowest annual revenue contribution. TRUE FALSE
The annual demand for the Super Thrive brand plant food manufactured by Cumberbatch and Dunst Indoor Plants Company is 120,000 pounds. The annual holding cost (also known as carrying charge) is $0.05 per pound, and Operations Manager Kirsten Benedict has calculated the cost of setting up machinery for making the plant food to be $20. 1) What is the annual holding (carrying) cost for the EOQ that you calculated ? plz send answer fast.
The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is $64.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005? OA. $2050 O B. $1360 O C. $1697 O D. $825 O E. $1200
A medical equipment has an average monthly demand is 134 units. Its unit cost is $385. It costs $486 to place an order, and the inventory carrying cost is $44 per unit per year. The equipment requires a 95% of service level with a safety stock requirement of 20 units. What is the equipment's minimum annual total inventory cost?
The total inventory carrying cost = $enter your response here. (Enter your response as a whole number.)

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