The number of pies required for each production run is to be calculated along with the annual cost of setup and the holding cost of the pies. Concept Introduction: Economic order quantity (EOQ) refers to the ideal order quantity that an organization should buy to minimize inventory costs such as ordering costs, holding costs, and shortage costs.

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Answer 1

Question

Chapter 4, Problem 43AP

(a)

Summary Introduction

Interpretation: The number of pies required for each production run is to be calculated along with the annual cost of setup and the holding cost of the pies.

Concept Introduction:

Economic order quantity (EOQ) refers to the ideal order quantity that an organization should buy to minimize inventory costs such as ordering costs, holding costs, and shortage costs.

(b)

Summary Introduction

Interpretation: The total optimal number of pies that should be baked each time in the new oven is to be calculated.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

(c)

Summary Introduction

Interpretation: The number of years will it require for the new oven to pay for itself is to be calculated when the cost of the new oven is $350.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

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Students have asked these similar questions

The results of your four plans will provide an indicative EOQ value. State this value and discuss in a precise manner, why it is not the exact, true value. Additional calculations in the form of plans E, F etc. may also assist your explanation of the EOQ and can be included

i). Complete the table assuming a Level production plan. ii) Comment on your results and explain whether at this stage, you consider a Level plan is a suitable approach for this particular business. Your comment should include reference to a calculated ‘fill rate’.

In the following sawtooth inventory profile diagram, two inventory plans with different order quantities (Q) and different frequencies of delivery are shown; order quantity for Plan A = 200 units and Plan B = 50 units. i). Total demand (D) is 350 units, the holding cost per unit (Ch) is equal to (£0.8) and the ordering cost per order (Co) is (£12.5). Calculate the total costs for each plan and state which one is more preferable along with the reason why. ii). There is a stark difference in the composition of the total costs of Plans A and B. Explain this difference and why it occurs. Use the breakdown of costs for each plan to help illustrate your answer.

Answer 2

Question

Chapter 4, Problem 43AP

(a)

Summary Introduction

Interpretation: The number of pies required for each production run is to be calculated along with the annual cost of setup and the holding cost of the pies.

Concept Introduction:

Economic order quantity (EOQ) refers to the ideal order quantity that an organization should buy to minimize inventory costs such as ordering costs, holding costs, and shortage costs.

(b)

Summary Introduction

Interpretation: The total optimal number of pies that should be baked each time in the new oven is to be calculated.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

(c)

Summary Introduction

Interpretation: The number of years will it require for the new oven to pay for itself is to be calculated when the cost of the new oven is $350.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

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Answer 3

Question

Chapter 4, Problem 43AP

(a)

Summary Introduction

Interpretation: The number of pies required for each production run is to be calculated along with the annual cost of setup and the holding cost of the pies.

Concept Introduction:

Economic order quantity (EOQ) refers to the ideal order quantity that an organization should buy to minimize inventory costs such as ordering costs, holding costs, and shortage costs.

(b)

Summary Introduction

Interpretation: The total optimal number of pies that should be baked each time in the new oven is to be calculated.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

(c)

Summary Introduction

Interpretation: The number of years will it require for the new oven to pay for itself is to be calculated when the cost of the new oven is $350.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

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Answer 4

Question

Chapter 4, Problem 43AP

(a)

Summary Introduction

Interpretation: The number of pies required for each production run is to be calculated along with the annual cost of setup and the holding cost of the pies.

Concept Introduction:

Economic order quantity (EOQ) refers to the ideal order quantity that an organization should buy to minimize inventory costs such as ordering costs, holding costs, and shortage costs.

(b)

Summary Introduction

Interpretation: The total optimal number of pies that should be baked each time in the new oven is to be calculated.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

(c)

Summary Introduction

Interpretation: The number of years will it require for the new oven to pay for itself is to be calculated when the cost of the new oven is $350.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

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Answer 5

Chapter 4, Problem 43AP

(a)

Summary Introduction

Interpretation: The number of pies required for each production run is to be calculated along with the annual cost of setup and the holding cost of the pies.

Concept Introduction:

Economic order quantity (EOQ) refers to the ideal order quantity that an organization should buy to minimize inventory costs such as ordering costs, holding costs, and shortage costs.

(b)

Summary Introduction

Interpretation: The total optimal number of pies that should be baked each time in the new oven is to be calculated.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

(c)

Summary Introduction

Interpretation: The number of years will it require for the new oven to pay for itself is to be calculated when the cost of the new oven is $350.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

Answer 6

Chapter 4, Problem 43AP

(a)

Summary Introduction

Interpretation: The number of pies required for each production run is to be calculated along with the annual cost of setup and the holding cost of the pies.

Concept Introduction:

Economic order quantity (EOQ) refers to the ideal order quantity that an organization should buy to minimize inventory costs such as ordering costs, holding costs, and shortage costs.

Answer 7

Chapter 4, Problem 43AP

(a)

Summary Introduction

Interpretation: The number of pies required for each production run is to be calculated along with the annual cost of setup and the holding cost of the pies.

Concept Introduction:

Economic order quantity (EOQ) refers to the ideal order quantity that an organization should buy to minimize inventory costs such as ordering costs, holding costs, and shortage costs.

Answer 8

(b)

Summary Introduction

Interpretation: The total optimal number of pies that should be baked each time in the new oven is to be calculated.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

Answer 9

(b)

Summary Introduction

Interpretation: The total optimal number of pies that should be baked each time in the new oven is to be calculated.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

Answer 10

(c)

Summary Introduction

Interpretation: The number of years will it require for the new oven to pay for itself is to be calculated when the cost of the new oven is $350.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

Answer 11

(c)

Summary Introduction

Interpretation: The number of years will it require for the new oven to pay for itself is to be calculated when the cost of the new oven is $350.

Concept Introduction:

Inventory management is nothing but the holding, ordering, and utilizing the organization’s inventory. This includes the management of the organization’s resources, raw material, components, and finished goods.

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

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