Answer is not complete.Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is the French Bete Noirewhich is shipped directly from France. Weekly demand is for 50 cases. Millennium purchases each case for$110, there is a $350 fixed cost for each order (independent of the quantity ordered) and their annual holdingcost is 25 percent.a.b.C.d.e.What order quantity minimizes Millennium's annual ordering and holdingcosts?If Millennium chooses to order 350 cases each time, what is the sum oftheir annual ordering and holding costs?(Round your answer to 2 decimal places.)If Millennium chooses to order 125 cases each time, what is the sum of theordering and holding costs incurred by each case sold?If Millennium is restricted to order in multiples of 50 cases (e.g., 50, 100,150, etc.) how many cases should they order to minimize their annualordering and holding costs?Millennium is offered a 5.00% discount if they purchase at least 1,000cases. If they decide to take advantage of this discount, what is the sum oftheir annual ordering and holding costs?257$ 7,4134.02 Xcasespercasecases

There are multiple sub-parts, as per the guideline, The first three sub-parts are taken for…

Answered: What order quantity minimizes…

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

If D = 8,500per month, S = $46per order, and H = $2.00per unit per month, Part 2 a) What is the economic order quantity? The EOQ is 625 units (round your response to the nearest whole number). Part 3 b) How does your answer change if the holding cost doubles? The EOQ is 442 units (round your response to the nearest whole number). Part 4 c) What if the holding cost drops in half? The EOQ is enter your response here units (round your response to the nearest whole number).
Potter Machine Company expects total sales of $60,000. The price per unit is $10. The firm estimates an ordering cost of $25 per order, with an inventory carrying cost of $0.70 per unit. What is the optimal order size?
SF, owner of the kebab houses, uses 20 pounds of mince each day in preparing meatball. Order costs for mince are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the mince itself costs $3.00 per pound. At what point should she reorder mince? Select one: 20 pounds remaining 60 pounds remaining 100 pounds remaining 80 pounds remaining 40 pounds remaining
A certain type of computer costs RO 1000, and the annual holding cost is 20% of the value of the item. Annual demand is 12,000 units, and the order cost is RO 200 per order. What is the approximate economic order quantity? Round-up to the nearest integer Select one: O a. 155 O b. 142 O c. 110 O d. None correct O e. 123
A bakery uses 1000 bags of flour a year. It costs $50 to order, and holding costs are $5 per bag on an annual basis. What is the optimal order quantity? a. 350 b. 400 c. 141 d. 200 e. 245
Surge Electric uses 4,000 toggle switches a year. Switches are priced as follows: 1 to 499, 90cents each; 500 to 999, 85 cents each; and 1,000 or more, 80 cents each. It costs approximately$30 to prepare an order and receive it, and carrying costs are 40 percent of purchase price perunit on an annual basis. Determine the optimal order quantity and the total annual cost.
3. Skinner’s Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $6 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $3 per pound. Daily demand can be approximated by a normal distribution with a mean of 64 pounds and a standard deviation of 11 pounds. What is the optimal order quantity (stocking level)? Round your answer to 2 decimal places. Answer:_______
13/ Do not solve it in excel, please.
Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 25,000 units, a cost per order of $80, and a holding cost per unit per year of $16?
Peter operates an ice cream shop and needs to order milk from a dairy supplier. The average daily milk consumption is 9 gallons, and the standard deviation is 2 gallons. The delivery time is 3 days on average, with a standard deviation = 1 day. Peter can place an order at any time, and he decides the order quantity = 100 gallons. What is the reorder point if he wants to keep the 95% service level?
A mail-order house uses 16,870 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. Number of BoxesPrice per Box1,000 to 1,999$1.25 2,000 to 4,9991.20 5,000 to 9,9991.15 10,000 or more1.10 a.Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal order quantity5000 boxes b.Determine the number of orders per year. (Round your answer to 2 decimal places.) Number of order per year

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