You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-find spices. Consider your inventory of saffron,a spice (generally) worth more by weight than gold. You order saffron from an overseas supplier with a shipping lead time of fourweeks and you order weekly. Average weekly demand is normally distributed with a mean of 60 ounces and a standarddeviation of 20 ounces. What is its expected on-order inventory? (round up to the nearest integer)

Answered: Image /qna-images/answer/913e8a44-d051-461e-893e-e713cf4d633c.jpg

Answered: You are the owner of Hotspices.com, an…

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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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:_______
I run Coca Cola, and I experience known and constant demand for Coke syrup. I use 10,000 liters of syrup annually. The cost of ordering is $100, and the annual cost of holding a liter of syrup is $4. What is the inventory cost (setup cost + ordering cost) of ordering the economic ordering quantity (EOQ)? Round to the nearest dollar, without the dollar sign. For example, if your answer is $2443.3433, enter 2443.
Polymorph Promotions finds that demand for an item is Normally distributed with a mean of 2,000 units a year and a standard deviation of 400 units. Unit cost is $100, reorder cost is $200, holding cost is 20% of value a year and lead time is fixed at 3 weeks. Compute the (s,Q) ordering policy that gives a 95% service level and the annual cost of the safety stock.
Salam's company expects its production of pipes will require 600,000 tons of aluminum over its planning period. Demand for pipes products is stable over time. Ordering costs amount to an average of $15.00 per order. Holding costs are estimated $1.4 per ton of aluminum. Find the following: Total cost of holding inventory at (EOQ)is Answer
please answer within 30 minutes.
I run a Ford car dealership, and I experience known and constant demand for cars. I sell 10,000 cars annually. The cost of ordering is $1,108, and the annual cost of holding a car on the lot is $500. What is the economic ordering quantity (EOQ)? Round to the nearest whole number (so if your answer is 443.363, round to 443)
KickBites Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It cost KickBites Manufacturing $40 to place an order, and the carrying cost is 25% of the unit cost. If pumps are ordered in quantities of between 200 and 250, KickBites Manufacturing can get a discount on the cost of the pumps. Should the company order 200 pumps or 250 pumps at a time and take the 3% discount? [Provide your answers in two decimal points]
Suppose that the retailer SnowInc buys ski jackets from the Chinese manufacturerJacketCo. Due to the short selling season and long delivery lead time for this fashiongood, this is a one-time purchase decision. SnowInc estimates the season’s demand forone type of jacket to be normally distributed with mean 500 and standard deviation 100.Retail price for the jacket is $100. If not sold at the end of the season they unload themfor $10 per jacket. The wholesale price JacketCo charges is $30 per jacket and JacketCo’sper unit manufacturing cost is $12. How many jackets should SnowInc order and what arethe two firms’ profits? If both firms were owned by the same company, how would theseanswers change?
Anglo American Platinum uses ABC analysis as an inventory categorisation method. The current inventory ordering policy is to order 10 000 units of an ‘A’-item inventory when the level falls to 4 500 units. Forecast demand to meet production requirements during the next year is 62 500 units. The cost of placing and processing an order relating to this inventory item is R250, while the cost of holding a unit in store is R50 per unit per year. You anticipate that both costs will be constant during the next year. Orders are received two weeks after being placed with the supplier. Assume a 50-week year and that demand is constant throughout the year. Using a quantitative analysis, appraise the optimality of the current ordering policy of the ‘A’-item inventory (Show all calculations).
please solve this on a paper i uploaded it before but the answer is wrong
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?
your company is facing the situation in which the demand is stochastic but the lead time is known with certainty. Your company has recently implemented a periodic review policy in which your inventory is reviewed every 30 days. The demand is normally distributed with a mean of 600 items annually. The lead time is 25 days, and the annual standard deviation is 100 units. Inventory shows 20 parts in stock. Your company has a policy of 90% service level type I. Also, ordering cost in $20 and holding cost is also $20 per item per year. a) find the order quantity for the next period b) how would your answer change if service level is defined as the expected number of parts available from stock.

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