The number of desks to be ordered. Inventory and supply chain models: The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

Question

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Answer 1

Question

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

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Students have asked these similar questions

What is the average inventory? What is the average flow time? What is the required safety inventory to achieve the desired service level? What is the required re-order point to achieve the desired service level?

Customers at Joe’s Office Supply Store demand an -average of 6000 desks per year. Each time an order is placed, an ordering cost of $300 is incurred. The annual holding cost for a single desk is 25% of the $200 cost of a desk. One week elapses between the placement of an order and the arrival of the order. In parts a to d, assume that no shortages are allowed. a. Each time an order is placed, how many desks should be ordered? b. How many orders should be placed each year? c. Determine the total annual costs (excluding purchasing costs) of meeting the customers’ demands for desks. d. If the lead time is five weeks, what is the reorder point? (One year equals 52 weeks.) e. How do the answers to parts a and b change if shortages are allowed and a cost of $80 is incurred if Joe’s is short one desk for one year

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 ?

Answer 2

Question

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

b)

Summary Introduction

To determine: The number of orders to be placed each year.

c)

Summary Introduction

To determine: The total annual costs.

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Answer 6

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

Answer 7

Chapter 12, Problem 40P

a)

Summary Introduction

To determine: The number of desks to be ordered.

Inventory and supply chain models:

The functions of inventory and supply chain are one of the most important business decision areas for an organization. The first important aspect of these concepts is to have adequate inventory on hand. The second important aspect is to carry a little amount of inventory as possible.

Answer 8

b)

Summary Introduction

To determine: The number of orders to be placed each year.

Answer 9

b)

Summary Introduction

To determine: The number of orders to be placed each year.

Answer 10

c)

Summary Introduction

To determine: The total annual costs.

Answer 11

c)

Summary Introduction

To determine: The total annual costs.

Answer 12

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

Answer 13

d)

Summary Introduction

To determine: The reorder point when the lead time is 5 weeks.

Answer 14

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Answer 15

e)

Summary Introduction

To determine: The change in the number of desks per order and the number of orders per year.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 12.4 - Prob. 1P Ch. 12.4 - Prob. 2P Ch. 12.4 - Prob. 3P Ch. 12.4 - Prob. 4P Ch. 12.4 - Prob. 5P Ch. 12.4 - Prob. 6P Ch. 12.4 - Prob. 7P Ch. 12.4 - Prob. 8P Ch. 12.4 - Prob. 9P Ch. 12.4 - Prob. 10P

Solution Summary: The author explains that inventory and supply chain are one of the most important business decision areas for an organization.

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To determine: The number of orders to be placed each year.

To determine: The total annual costs.

To determine: The reorder point when the lead time is 5 weeks.

To determine: The change in the number of desks per order and the number of orders per year.

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Chapter 12 Solutions