The average annual costs of production, holding, and setup at each location is to be determined along with preferable location. Concept introduction: The cost of producing abroad and locally may differ, and the less costly option would be more appropriate for B computer to choose as it would maximize its profits more than a high cost location. Total cost refers to the addition of fixed and variable cost.

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Answer 1

Question

Chapter 4, Problem 34AP

a

Summary Introduction

Interpretation: The average annual costs of production, holding, and setup at each location is to be determined along with preferable location.

Concept introduction: The cost of producing abroad and locally may differ, and the less costly option would be more appropriate for B computer to choose as it would maximize its profits more than a high cost location.

Total cost refers to the addition of fixed and variable cost.

b

Summary Introduction

Interpretation:The value of the pipeline inventory in each case, and whether the comparison of the pipeline inventories alters the conclusion reached in part (a).

Concept introduction:The value of inventory would depend on the number of units produced the cost incurred in producing those units.

Total cost refers to the addition of fixed and variable cost.

c

Summary Introduction

Interpretation:Whether considerations other than cost favor local over overseas production are to be determined.

Concept introduction: Cost is not the only contributing factor when making the choice of where the production should take place, there are several other quantitative and qualitative factors.

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Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation. Yeast & Brewery Company Quantity 1-399 400-899 900+ Unit Price $16.91 $16.23 $15.69 Crust n Krumbs Company Quantity 1-499 500-999 1000+ Unit Price $16.23 What is the optimal order quantity? [Select] $15.91 $15.69 What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units Which supplier, based on all options with regard to discounts, should be used? [Select] [Select] What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number?…

The Farmer’s Wife is a country store specializing in knickknacks suitable for a farm-house décor. One item experiencing a considerable buying frenzy is a miniature Holstein cow. Average weekly demand is 30 cows, with a standard deviation of 5 cows. The cost to place a replenishment order is $15 and the holding cost is $0.75/cow/year. The supplier, however, is inChina. The lead time for new orders is 8 weeks, with a standard deviation of 2 weeks. The Farmer’s Wife, which is open only 50 weeks a year, wants to develop a continuous review inventory system for this item with a cycle-service level of 90 percent.a. Specify the continuous review system for the cows. Explain how it would work in practice.b. What is the total annual cost for the system you developed?

Answer 2

Question

Chapter 4, Problem 34AP

a

Summary Introduction

Interpretation: The average annual costs of production, holding, and setup at each location is to be determined along with preferable location.

Concept introduction: The cost of producing abroad and locally may differ, and the less costly option would be more appropriate for B computer to choose as it would maximize its profits more than a high cost location.

Total cost refers to the addition of fixed and variable cost.

b

Summary Introduction

Interpretation:The value of the pipeline inventory in each case, and whether the comparison of the pipeline inventories alters the conclusion reached in part (a).

Concept introduction:The value of inventory would depend on the number of units produced the cost incurred in producing those units.

Total cost refers to the addition of fixed and variable cost.

c

Summary Introduction

Interpretation:Whether considerations other than cost favor local over overseas production are to be determined.

Concept introduction: Cost is not the only contributing factor when making the choice of where the production should take place, there are several other quantitative and qualitative factors.

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Answer 3

Question

Chapter 4, Problem 34AP

a

Summary Introduction

Interpretation: The average annual costs of production, holding, and setup at each location is to be determined along with preferable location.

Concept introduction: The cost of producing abroad and locally may differ, and the less costly option would be more appropriate for B computer to choose as it would maximize its profits more than a high cost location.

Total cost refers to the addition of fixed and variable cost.

b

Summary Introduction

Interpretation:The value of the pipeline inventory in each case, and whether the comparison of the pipeline inventories alters the conclusion reached in part (a).

Concept introduction:The value of inventory would depend on the number of units produced the cost incurred in producing those units.

Total cost refers to the addition of fixed and variable cost.

c

Summary Introduction

Interpretation:Whether considerations other than cost favor local over overseas production are to be determined.

Concept introduction: Cost is not the only contributing factor when making the choice of where the production should take place, there are several other quantitative and qualitative factors.

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Answer 4

Question

Chapter 4, Problem 34AP

a

Summary Introduction

Interpretation: The average annual costs of production, holding, and setup at each location is to be determined along with preferable location.

Concept introduction: The cost of producing abroad and locally may differ, and the less costly option would be more appropriate for B computer to choose as it would maximize its profits more than a high cost location.

Total cost refers to the addition of fixed and variable cost.

b

Summary Introduction

Interpretation:The value of the pipeline inventory in each case, and whether the comparison of the pipeline inventories alters the conclusion reached in part (a).

Concept introduction:The value of inventory would depend on the number of units produced the cost incurred in producing those units.

Total cost refers to the addition of fixed and variable cost.

c

Summary Introduction

Interpretation:Whether considerations other than cost favor local over overseas production are to be determined.

Concept introduction: Cost is not the only contributing factor when making the choice of where the production should take place, there are several other quantitative and qualitative factors.

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Answer 5

Chapter 4, Problem 34AP

a

Summary Introduction

Interpretation: The average annual costs of production, holding, and setup at each location is to be determined along with preferable location.

Concept introduction: The cost of producing abroad and locally may differ, and the less costly option would be more appropriate for B computer to choose as it would maximize its profits more than a high cost location.

Total cost refers to the addition of fixed and variable cost.

b

Summary Introduction

Interpretation:The value of the pipeline inventory in each case, and whether the comparison of the pipeline inventories alters the conclusion reached in part (a).

Concept introduction:The value of inventory would depend on the number of units produced the cost incurred in producing those units.

Total cost refers to the addition of fixed and variable cost.

c

Summary Introduction

Interpretation:Whether considerations other than cost favor local over overseas production are to be determined.

Concept introduction: Cost is not the only contributing factor when making the choice of where the production should take place, there are several other quantitative and qualitative factors.

Answer 6

Chapter 4, Problem 34AP

a

Summary Introduction

Interpretation: The average annual costs of production, holding, and setup at each location is to be determined along with preferable location.

Concept introduction: The cost of producing abroad and locally may differ, and the less costly option would be more appropriate for B computer to choose as it would maximize its profits more than a high cost location.

Total cost refers to the addition of fixed and variable cost.

Answer 7

Chapter 4, Problem 34AP

a

Summary Introduction

Interpretation: The average annual costs of production, holding, and setup at each location is to be determined along with preferable location.

Concept introduction: The cost of producing abroad and locally may differ, and the less costly option would be more appropriate for B computer to choose as it would maximize its profits more than a high cost location.

Total cost refers to the addition of fixed and variable cost.

Answer 8

b

Summary Introduction

Interpretation:The value of the pipeline inventory in each case, and whether the comparison of the pipeline inventories alters the conclusion reached in part (a).

Concept introduction:The value of inventory would depend on the number of units produced the cost incurred in producing those units.

Total cost refers to the addition of fixed and variable cost.

Answer 9

b

Summary Introduction

Interpretation:The value of the pipeline inventory in each case, and whether the comparison of the pipeline inventories alters the conclusion reached in part (a).

Concept introduction:The value of inventory would depend on the number of units produced the cost incurred in producing those units.

Total cost refers to the addition of fixed and variable cost.

Answer 10

c

Summary Introduction

Interpretation:Whether considerations other than cost favor local over overseas production are to be determined.

Concept introduction: Cost is not the only contributing factor when making the choice of where the production should take place, there are several other quantitative and qualitative factors.

Answer 11

c

Summary Introduction

Interpretation:Whether considerations other than cost favor local over overseas production are to be determined.

Concept introduction: Cost is not the only contributing factor when making the choice of where the production should take place, there are several other quantitative and qualitative factors.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4.4 - Prob. 1P Ch. 4.4 - Prob. 2P Ch. 4.4 - Prob. 3P Ch. 4.4 - Prob. 4P Ch. 4.4 - Prob. 5P Ch. 4.4 - Prob. 6P Ch. 4.4 - Prob. 7P Ch. 4.4 - Prob. 8P Ch. 4.4 - Prob. 9P Ch. 4.5 - Prob. 10P

Solution Summary: The author explains that the average annual costs of production, holding, and setup at each location is to be determined along with preferable location.

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