Wood County Hospital consumes 1,500 boxes of bandages per week. The price of bandages is $36 per box, and the hospital operates52 weeks per year. The cost of processing an order is $15, and the cost of holding one box for a year is 20 percent of the value of thematerial.a. The hospital orders bandages in lot sizes of 900 boxes. What extra cost does the hospital incur, which it could save by using theEOQ method? $ 435.37 (Enter your response rounded to two decimal places.)b. Demand is normally distributed, with a standard deviation of weekly demand of 150 boxes. The lead time is 2 weeks. Refer to thestandard 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? 348boxes. (Enter your response rounded to the nearest whole number.)What should be the reorder point? boxes. (Enter your response rounded to the nearest whole number.)pmoints

The weekly demand is 1500 boxes The price per box is 36 The annual demand=Weekly demand×52 The…

Answered: Wood County Hospital consumes 1,500…

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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The production order quantity for this problem is approximately 332 units. daily demand rate = 64; daily production rate = 100. What is the average inventory on - hand ( in other words - the inventory for which you are paying Holding Costs ) In this problem ?
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Wood County Hospital consumes 1,000 boxes of bandagesper week. The price of bandages is $35 per box, and thehospital operates 52 weeks per year. The cost of processingan order is $15, and the cost of holding one box for a year is15 percent of the value of the material.a. The hospital orders bandages in lot sizes of 900 boxes.What extra cost does the hospital incur, which it couldsave by using the EOQ method?b. Demand is normally distributed, with a standard devia-tion of weekly demand of 100 boxes. The lead time is2 weeks. What safety stock is necessary if the hospital usesa continuous review system and a 97 percent cycle-servicelevel is desired? What should be the reorder point?c. If the hospital uses a periodic review system, with P = 2weeks, what should be the target inventory level, T?
A bookstore has an annual demand for 44,000 copies of a best-selling book. It costs $0.50 to store one copy for one year, and it costs $80 to place an order. Find the optimum number of copies per order. A. 3,752 copies B. 5,307 copies C. 4,530 copies OD. 3,377 copies
Wood County Hospital consumes 1,000 boxes of bandages per week. The price of bandages is $35 per box, and the hospital operates 52 weeks per year. The cost of processing an order is $15, and the cost of holding one box for a year is 15 percent of the value of the material.a. The hospital orders bandages in lot sizes of 900 boxes. What extra cost does the hospital incur, which it could save by using the EOQ method?b. Demand is normally distributed, with a standard deviation of weekly demand of 100 boxes. The lead time is 2 weeks. What safety stock is necessary if the hospital uses a continuous review system and a 97 percent cycle-service level is desired? What should be the reorder point?c. If the hospital uses a periodic review system, with P = 2 weeks, what should be the target inventory level, T?
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Sam's Pet Hotel operates 5050 weeks per year, 66 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.0013.00 per bag. The following information is available about these bags: follows≻Demandequals=8080 bags/week follows≻Order costequals=$55.0055.00/order follows≻Annual holding costequals=2020 percent of cost follows≻Desired cycle-service levelequals=8080 percent follows≻Lead timeequals=55 weeks (3030 working days) follows≻Standard deviation of weekly demandequals=1515 bags follows≻Current on-hand inventory is 320320 bags, with no open orders or backorders. Part 2 a. Suppose that the weekly demand forecast of 8080 bags is incorrect and actual demand averages only 5555 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error?
2
A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. CertifiedSupplier OrderSize (Q) Price per Unit (P) OversightCostper Unit (O) TransportCost perUnit (Ct) Order Cost(Co) Cost to StoreOne UnitOne Year (Ch) Order LeadTime inDays (L) New Albany Mfg. 59,000 $11.74 $0.00 $0.37 $255 $1.70 51 LaPlaya Mfg. 118,000 $11.08 $0.42 $0.87 $290 $1.35 99 Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 1,180,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. Order quantity: 59,000 units 118,000 units Total procurement cost: $ $ Total management oversight…
True Blue says that annual margin for each of its loyalty program members averages $366.60. These customers order an average of 3.3 times per year, and contribution margin as percent of revenue averages 25% for these customers. Given these numbers, calculate average order size in retail dollars for True Blue's loyalty program members. Rounding: penny. Your Answer: Answer
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.)
which of the following is not included in carrying cost a ) obsolescence b) Insurance c ) Extra staffing d ) Order processing

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