The sources that should be used and the size of the standing orders are to be calculated. Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

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Answer 1

Question

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.c. If the replenishment lead time for wafers is three months, determine the reorderpoint based on the on-hand level of inventory of wafers

A purchasing agent for a particular type of silicon wafer used in the production ofsemiconductors must decide among three sources. Source A will sell the siliconwafers for $2.50 per wafer, independently of the number of wafers ordered. Source Bwill sell the wafers for $2.40 each but will not consider an order for fewer than3,000 wafers, and Source C will sell the wafers for $2.30 each but will not acceptan order for fewer than 4,000 wafers. Assume an order setup cost of $100 and anannual requirement of 20,000 wafers. Assume a 20 percent annual interest rate forholding cost calculations.a. Which source should be used, and what is the size of the standing order?

22. A purchasing agent for a particular type of silicon wafer used in the production of semiconductors must decide among three sources. Source A will sell the silicon wafers for $2.50 per wafer, independently of the number of wafers ordered. Source B will sell the wafers for $2.40 each but will not consider an order for fewer than 3,000 wafers, and Source C will sell the wafers for $2.30 each but will not accept an order for fewer than 4,000 wafers. Assume an order setup cost of $100 and an annual requirement of 20,000 wafers. Assume a 20 percent annual interest rate for holding cost calculations. a. Which source should be used, and what is the size of the standing order? b. What is the optimal value of the holding and setup costs for wafers when the optimal source is used? c. If the replenishment lead time for wafers is three months, determine the reorder point based on the on-hand level of inventory of wafers.

Answer 2

Question

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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Answer 3

Question

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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Answer 4

Question

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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Answer 5

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

Answer 6

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Answer 7

Chapter 4.7, Problem 22P

a.

Summary Introduction

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Answer 8

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

Answer 9

b

Summary Introduction

Interpretation: The optimal value of the holding and set up costs for wafers are to be computed.

Concept introduction: Holding costs are those related with storage inventory that remains unsold.These prices are 1 component of total stock costs, along with ordering & shortage costs where as set up charges is the cost acquired to get equipment to get equipment to procedure a diverse batch of goods.

Answer 10

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

Answer 11

c

Summary Introduction

Interpretation:The re-order point based on the on-hand level of inventory of wafers is to be calculated.

Concept introduction: Re-order point is the level of stock which generates an act to refill that inventory stock. It is a least amount of an article which anestablishmentgrasps in inventory, such that, when inventorydrop to this sum, the article must be ordered.

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

The sources that should be used and the size of the standing orders are to be calculated. Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Solution Summary: The author explains how the optimal level of order quantity considers the cost that each source charges.

Concept explainers

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

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Chapter 4 Solutions

The sources that should be used and the size of the standing orders are to be calculated. Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Solution Summary: The author explains how the optimal level of order quantity considers the cost that each source charges.

Concept explainers

Interpretation:The sources that should be used and the size of the standing orders are to be calculated. Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.

Want to see the full answer?

Chapter 4 Solutions

Interpretation:The sources that should be used and the size of the standing orders are to be calculated.

Concept introduction: Standing orders areexercised to enablenormallyperiodic charges to the similar vendor over a definite period.