The optimum production quantity. Introduction: Economic production quantity (EPQ): The economic production quantity is used to determine the amount a company or a retail outlet should purchase at every order so as to minimize the associated total inventory costs. It is done by balancing the holding cost and the ordering cost.

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Answer 1

Question

Chapter 12, Problem 20P

a)

Summary Introduction

To calculate: The optimum production quantity.

Introduction:

Economic production quantity (EPQ):

The economic production quantity is used to determine the amount a company or a retail outlet should purchase at every order so as to minimize the associated total inventory costs. It is done by balancing the holding cost and the ordering cost.

b)

Summary Introduction

To calculate: The maximum inventory level.

c)

Summary Introduction

To calculate: The number of production runs of wheel bearing in a year.

d)

Summary Introduction

To calculate: The total of the setup cost and holding cost.

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1) View the video Service Processing at BuyCostumes (10.41 minutes, Ctrl+Click on the link); what are your key takeaways (tie to one or more of the topics discussed in Chapter 3) after watching this video. (viddler.com/embed/a6b7054c) Note: As a rough guideline, please try to keep the written submission to one or two paragraphs. 2) Orkhon Foods makes hand-held pies (among other products). The firm’s weekly sales of hand-held pies over the past seven weeks are given in the table. The firm’s operations manager, Amarjargal, wants to forecast sales for week 8. Weeks Sales of hand-held pies(000s) 1 19 2 18 3 17 4 20 5 18 6 22 7 20 Forecast the week 8 sales using the following approaches: a) Naïve approach b) 5-month moving average c) 3-month weighted moving average using the following weights: 0.50 for week 7, 0.30 for week 6, and 0.20 for week 5. d) Exponential smoothing using a smoothing constant of 0.30, assume a week 2…

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Answer 2

Question

Chapter 12, Problem 20P

a)

Summary Introduction

To calculate: The optimum production quantity.

Introduction:

Economic production quantity (EPQ):

The economic production quantity is used to determine the amount a company or a retail outlet should purchase at every order so as to minimize the associated total inventory costs. It is done by balancing the holding cost and the ordering cost.

b)

Summary Introduction

To calculate: The maximum inventory level.

c)

Summary Introduction

To calculate: The number of production runs of wheel bearing in a year.

d)

Summary Introduction

To calculate: The total of the setup cost and holding cost.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 20P

a)

Summary Introduction

To calculate: The optimum production quantity.

Introduction:

Economic production quantity (EPQ):

The economic production quantity is used to determine the amount a company or a retail outlet should purchase at every order so as to minimize the associated total inventory costs. It is done by balancing the holding cost and the ordering cost.

b)

Summary Introduction

To calculate: The maximum inventory level.

c)

Summary Introduction

To calculate: The number of production runs of wheel bearing in a year.

d)

Summary Introduction

To calculate: The total of the setup cost and holding cost.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 12, Problem 20P

a)

Summary Introduction

To calculate: The optimum production quantity.

Introduction:

Economic production quantity (EPQ):

The economic production quantity is used to determine the amount a company or a retail outlet should purchase at every order so as to minimize the associated total inventory costs. It is done by balancing the holding cost and the ordering cost.

b)

Summary Introduction

To calculate: The maximum inventory level.

c)

Summary Introduction

To calculate: The number of production runs of wheel bearing in a year.

d)

Summary Introduction

To calculate: The total of the setup cost and holding cost.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 20P

a)

Summary Introduction

To calculate: The optimum production quantity.

Introduction:

Economic production quantity (EPQ):

The economic production quantity is used to determine the amount a company or a retail outlet should purchase at every order so as to minimize the associated total inventory costs. It is done by balancing the holding cost and the ordering cost.

b)

Summary Introduction

To calculate: The maximum inventory level.

c)

Summary Introduction

To calculate: The number of production runs of wheel bearing in a year.

d)

Summary Introduction

To calculate: The total of the setup cost and holding cost.

Answer 6

Chapter 12, Problem 20P

a)

Summary Introduction

To calculate: The optimum production quantity.

Introduction:

Economic production quantity (EPQ):

The economic production quantity is used to determine the amount a company or a retail outlet should purchase at every order so as to minimize the associated total inventory costs. It is done by balancing the holding cost and the ordering cost.

Answer 7

Chapter 12, Problem 20P

a)

Summary Introduction

To calculate: The optimum production quantity.

Introduction:

Economic production quantity (EPQ):

The economic production quantity is used to determine the amount a company or a retail outlet should purchase at every order so as to minimize the associated total inventory costs. It is done by balancing the holding cost and the ordering cost.

Answer 8

b)

Summary Introduction

To calculate: The maximum inventory level.

Answer 9

b)

Summary Introduction

To calculate: The maximum inventory level.

Answer 10

c)

Summary Introduction

To calculate: The number of production runs of wheel bearing in a year.

Answer 11

c)

Summary Introduction

To calculate: The number of production runs of wheel bearing in a year.

Answer 12

d)

Summary Introduction

To calculate: The total of the setup cost and holding cost.

Answer 13

d)

Summary Introduction

To calculate: The total of the setup cost and holding cost.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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Solution Summary: The author explains the economic production quantity, which determines the amount a company or retail outlet should purchase at every order so as to minimize the associated total inventory costs.

Concept explainers

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To calculate: The maximum inventory level.

To calculate: The number of production runs of wheel bearing in a year.

To calculate: The total of the setup cost and holding cost.

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Chapter 12 Solutions