Which of the following has the larger percentage of change in order order quantity for anincrease in the in-stock probability ?An increase in the in-stock probability of 15 %An increase in the in-stock probability from 80 percent to 85 percent.An increase in the in-stock probability of 10%An increase in the in-stock probability from 70 percent to 80 percent.

In-stock probability refers to the likelihood that a particular item or product is currently…

Answered: Which of the following has the larger…

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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If annual sales for your product are 715, and the holding cost per unit is $5, and the cost to place an order is $350, then: 1. Calculate the EOQ, and round it to 2 decimal places. 2. Calculate the ordering and holding costs, per year, if you use the EOQ. What is the Sum of Ordering and Holding costs (rounded to nearest dollar)?
Jam costs $10/jar, requires a 6mo. lead time, and will sell for $35/jar. If you stock out, you'll face a $25/jar loss of goodwill. Placing an order costs $50, and money that is tied up in capital is assumed to have a 20% interest rate for calculating holding costs. During the 6-mo replenishment time, he sells ~100 jars, but with substantial variation. Estimates are a standard deviation of demand during each 6-mo period of 25 jars. Assume demand is described by a normal distribution. How should the Jam be ordered?
Which of the following statements is true: (T, S) policies require more safety stock than (s, Q) policies to achieve the same CSL. An (s, Q) policy where both demand and lead-time are stochastic requires more safety stock than an (s, Q) policy where only the demand is stochastic. For an (s, Q) policy, the reorder level is always larger than the safety stock. All of the above.
Which of the following changes in the in-stock probability increases the order quantitythe most?a. An increase in the in-stock probability from 70 percent to 80 percent.b. An increase in the in-stock probability from 70 percent to 85 percent.c. An increase in the in-stock probability from 80 percent to 90 percent.d. An increase in the in-stock probability from 80 percent to 95 percent.
ons Management Fall20 Al Khaleej Inc. needs 325 kgs of a material per month. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 15% of purchase price. The price RO 3 per kg. The company is operating 6 days per week. What is the best annual total holding and ordering cost in RO? Round- up to the nearest integer Select one: a. 484 Ob. None is correct C. 625 d. 593 O e. 502 Next pag
Henderson Furniture sells reproductions of 18th-century furniture. For a particular table, the assumptions of the inventory model with backorders are valid. Annual Demand: D = 200 tables per year Inventory holding cost (as a percent of the item cost): 1 = 25% per year Item cost: C = $800 per table Ordering cost: Co = $80 per order Backordering cost: Cb = $50 per table per year The store is open 250 days a year. What is the economic order quantity that will minimize the total cost? Results are expected to be rounded to the nearest whole number. ○ A. 28 B. 5 ○ C. 13 OD. 23 E. 14 QUESTION 4 What is the backorder quantity that will minimize the total cost? Results are expected to be rounded to the nearest whole number. ○ A. 14 B. 23 C. 13 OD. 28 ○ E. 5
(a) Ignoring taxation, calculate the optimum order level of inventory over a one-year planning period using the EOQ model. (b) Estimate the level of safety inventory that should be carried by Toyzrfun Ltd. (c) If Toyzrfun Ltd were to be offered a quantity discount by its suppliers of 1% for orders of 30 000 units or more, evaluate whether it would be beneficial for the company to take advantage of the quantity discount. Assume for this calculation that no safety inventory is carried. (d) Estimate the expected total annual costs of inventory management if the EOQ had been (i) 50% higher, and (ii) 50% lower than its actual level. Comment upon the sensitivity of total annual costs to changes in the EOQ.
A company that markets hypodermic needles to hospitals. The company purchases the needles from a supplier. The annual demand is 7,641 needles. The annual setup (or ordering) cost is $20 per order and the inventory holding cost per unit per year is $6.05. The company operates 258 days a year. Calculate the optimal number of orders per year for the company.
1.) A firm orders on average 400 wheels each month. Demand is normally distributed with standard deviation of the monthly demand being 20 wheels. The ordering cost is $8 per order. The cost to buy one wheel is $4 per wheel. Annual carrying costs are 50% of unit cost. The supplier lead time is 2 operating days. The firm operates 240 days per year, in other word, the firm operates 20 days each month. Each order is received from the supplier in a single delivery. There are no quantity discounts. Write your answer and then Round your answer up to the nearest number for future calculation. (e.g 9.6 => 10). Please clearly write down the formulation and calculation for your answers. Note: Here I make the time measures bolded for you to make you pay the attention to their differences. Please notice the difference in times measure units, so that you do not make mistake by doing calculations with different time measures. You need to convert the data to the same time measures before doing any…
If D = 8,500 per month, S = $46 per order, and H = $2.00 per unit per month, Part 2 a) What is the economic order quantity? The EOQ is 625625 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 enter your response here units (round your response to the nearest whole number).
A company is planning for its financing needs and uses the basic fixed-order quantity inventory model. Which of the following is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150?
A company that markets hypodermic needles to hospitals. The company purchases the needles from a supplier. The annual demand is 6,603 needles. The annual setup (or ordering) cost is $31 per order and the inventory holding cost per unit per year is $11.35. The company operates 293 days a year. Calculate the optimal annual holding cost for the company.Use at least 4 decimal places.

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