The EOQ, re-order point, number of orders and total annual cost needs to be determined. Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

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Chapter 11, Problem 6PA

Summary Introduction

Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined.

Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

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Question content area Part 1 Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) Part 2 Rank the SKUs in descending order on the basis of their annual dollar usage and fill in the table with the ranked SKU's percentage of dollar usage. (Enter your responses rounded to two decimal places.)

Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: > Demand 70 bags/week > Order cost $58.00/order > Annual holding cost 30 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 70 bags is incorrect and actual demand averages only 45 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)

a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $enter your response here. (Enter your response as a whole number.) b. The aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is shown below. c. How would your analysis change if average weekly demand increased to 160 units per week? The aggregate inventory values are shown below.

Answer 2

Question

Chapter 11, Problem 6PA

Summary Introduction

Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined.

Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 11, Problem 6PA

Summary Introduction

Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined.

Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 6PA

Summary Introduction

Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined.

Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 6PA

Summary Introduction

Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined.

Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

Answer 6

Chapter 11, Problem 6PA

Summary Introduction

Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined.

Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

Answer 7

Chapter 11, Problem 6PA

Summary Introduction

Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined.

Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ Ch. 11 - Prob. 1PA Ch. 11 - Prob. 2PA Ch. 11 - Prob. 3PA Ch. 11 - Prob. 4PA Ch. 11 - Prob. 6PA

The EOQ, re-order point, number of orders and total annual cost needs to be determined. Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

Solution Summary: The author explains that the economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

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Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined.

Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

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Chapter 11 Solutions

The EOQ, re-order point, number of orders and total annual cost needs to be determined. Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

Solution Summary: The author explains that the economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

Concept explainers

Videos

Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined. Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.

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Chapter 11 Solutions

Interpretation:The EOQ, re-order point, number of orders and total annual cost needs to be determined.

Concept Introduction: The economic order quantity approach aims to reduce the costs associated with holding, inventory and ordering.