Answer 12.7a-cPlease show detailed calculations or software output Barbara Flynn's company has compiled the following12.5ata on a small set of products:ITEMABCDEANNUAL DEMANDITEM NUMBERE102D23D27R02R19$107$123U11U23V751007550200150Perform an ABC analysis on her data. PX12.6 Lynn Fish opened a new beauty-products retail store.There are numerous items in inventory, and Lynn knows thatthere are costs associated with inventory. However, because hertime is limited, she cannot carefully evaluate the inventory policyfor all products. Lynn wants to classify the items according to dol-lars invested in them. The following table provides informationabout the 10 items that she carries:UNIT COST$3001005010065UNIT COST$4$16$8$2$8$12$1$7$1$14DEMAND (UNITS)8002,4007001,0002005001,200800Use ABC analysis to classify these items into categories A, B,and C. PX1,5002,500Problems 12.7-12.40 relate to Inventory Models for Independent Demand• 12.7William Beville's computer training school, inRichmond, stocks workbooks with the following characteristics:Demand D= 19,500 units/yearOrdering cost S = $25/orderHolding cost H = $4/unit/yeara) Calculate the EOQ for the workbooks.b) What are the annual holding costs for the workbooks?c) What are the annual ordering costs? PX12.8 If D= 8,000 per month, S = $45 per order, andH = $2 per unit per month,a) What is the economic order quantity?b) How does your answer change if the holding cost doubles?c) What if the holding cost drops in half? PX12.9Leilani Lavender's law office has traditionally orderedink refills 60 units at a time. The firm estimates that carrying costis 40% of the $10 unit cost and that annual demand is about 240units per year. The assumptions of the basic EOQ model arethought to apply.a) For what value of ordering cost would its action be optimal?b) If the true ordering cost turns out to be much greater than youranswer to (a), what is the impact on the firm's ordering policy?CHAPTER 12 INVENTORY MANAGEMENT 523• 12.10Matthew Liotine's Dream Store sells beds and as-sorted supplies. His best-selling bed has an annual demand of 400units. Ordering cost is $40; holding cost is $5 per unit per year.a) To minimize the total cost, how many units should be orderedeach time an order is placed?b) If the holding cost per unit was $6 instead of $5, what wouldbe the optimal order quantity? PX• 12.11Southeastern Bell stocks a certain switch connector atits central warehouse for supplying field service offices. The yearlydemand for these connectors is 15,000 units. Southeastern esti-mates its annual holding cost for this item to be $25 per unit. Thecost to place and process an order from the supplier is $75. Thecompany operates 300 days per year, and the lead time to receivean order from the supplier is 2 working days.a) Find the economic order quantity.b) Find the annual holding costs.c) Find the annual ordering costs.d) What is the reorder point? PX12.12 Lead time for one of your fastest-moving products is21 days. Demand during this period averages 100 units per day.a) What would be an appropriate reorder point?b) How does your answer change if demand during lead time doubles?c) How does your answer change if demand during lead timedrops in half?• 12.13 Annual demand for the notebook binders at Duncan'sStationery Shop is 10,000 units. Dana Duncan operates her busi-ness 300 days per year and finds that deliveries from her suppliergenerally take 5 working days.a) Calculate the reorder point for the notebook binders that shestocks.b) Why is this number important to Duncan?..12.14 Thomas Kratzer is the purchasing manager for theheadquarters of a large insurance company chain with a centralinventory operation. Thomas's fastest-moving inventory item hasa demand of 6,000 units per year. The cost of each unit is $100,and the inventory carrying cost is $10 per unit per year. The aver-age ordering cost is $30 per order. It takes about 5 days for anorder to arrive, and the demand for 1 week is 120 units. (This is acorporate operation, and there are 250 working days per year.)a) What is the EOQ?b) What is the average inventory if the EOQ is used?c) What is the optimal number of orders per year?d) What is the optimal number of days in between any two orders?e) What is the annual cost of ordering and holding inventory?f) What is the total annual inventory cost, including the cost ofthe 6,000 units? PX.. 12.15 Jordin Henry's machine shop uses 2,500 brackets duringthe course of a year. These brackets are purchased from a supplier90 miles away. The following information is known about the brackets:2,500$1.50$18.752 days250Annual demand:Holding cost per bracket per year:Order cost per order:Lead time:Working days per year:a) Given the information, what would be the economic orderquantity (EOQ)?b) Given the EOQ, what would be the average inventory? Whatwould be the annual inventory holding cost?

Answered: Image /qna-images/answer/655d38a0-b365-4e11-862b-66e78e441856.jpg

Answered: William Beville's computer training…

William Beville's computer training school, in , stocks workbooks with the following characteristics: Demand D= 19,500 units/year Ordering cost S = $25/order Holding cost H = $4/unit/year

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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From the perspective of the development of manufacturing support systems, the "Product Management Integration" phase includes all of the following systems EXCEPT: Question 19 options: MRP II (Manufacturing Resource Planning) MRP (Materials Requirements Planning) CL MRP (Closed Loop Material Requirements Planning) LIS (Logistics Information System) Previous PageNext Page