The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

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Answer 1

Question

Chapter C, Problem 5P

A

Summary Introduction

Interpretation: The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information

Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

B

Summary Introduction

Interpretation: The total annual cost for best ordering quantity is to be calculated.

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

C

Summary Introduction

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.

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Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyers choice). The supplier has offered the following terms: Order 1-100 bags, and the price is $6.00 a bag. Order 101 or more and the price is $4.50 a bag. Annual demand is 630, fixed ordering costs are $9 per order, and the per bag holding cost is estimated to be around $2 per year. What order quantity should Ollah order, based on the volume discount? Is this different from the EOQ? if so how could this be? please show calculations.

Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyers choice). The supplier has offered the following terms: Order 1-100 bags, and the price is $6.00 a bag. Order 101 or more and the price is $4.50 a bag. Annual demand is 630, fixed ordering costs are $9 per order, and the per bag holding cost is estimated to be around $2 per year. What is the economic order quantity for the bags? please show calculations

Sam's Pet Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: ≻Demand=75 bags/week ≻Order cost=$55.00/order ≻Annual holding cost=25 percent of cost ≻Desired cycle-service level=80 percent ≻Lead time=4 weeks (24 working days) ≻Standard deviation of weekly demand=15 bags ≻Current on-hand inventory is 320 bags, with no open orders or backorders. Part 2 a. Suppose that the weekly demand forecast of 75 bags is incorrect and actual demand averages only 50 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $enter your response here higher owing to the error in EOQ. (Enter your response rounded to two decimal places.) a. What is the EOQ? What would the average time between orders (in weeks)? b. What should R be? c. An inventory withdraw…

Answer 2

Question

Chapter C, Problem 5P

A

Summary Introduction

Interpretation: The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information

Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

B

Summary Introduction

Interpretation: The total annual cost for best ordering quantity is to be calculated.

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

C

Summary Introduction

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.

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Answer 3

Question

Chapter C, Problem 5P

A

Summary Introduction

Interpretation: The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information

Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

B

Summary Introduction

Interpretation: The total annual cost for best ordering quantity is to be calculated.

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

C

Summary Introduction

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.

Expert Solution & Answer

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Answer 4

Question

Chapter C, Problem 5P

A

Summary Introduction

Interpretation: The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information

Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

B

Summary Introduction

Interpretation: The total annual cost for best ordering quantity is to be calculated.

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

C

Summary Introduction

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.

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Answer 5

Chapter C, Problem 5P

A

Summary Introduction

Interpretation: The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information

Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

B

Summary Introduction

Interpretation: The total annual cost for best ordering quantity is to be calculated.

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

C

Summary Introduction

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.

Answer 6

Chapter C, Problem 5P

A

Summary Introduction

Interpretation: The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information

Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

Answer 7

Chapter C, Problem 5P

A

Summary Introduction

Interpretation: The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information

Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

Answer 8

B

Summary Introduction

Interpretation: The total annual cost for best ordering quantity is to be calculated.

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

Answer 9

B

Summary Introduction

Interpretation: The total annual cost for best ordering quantity is to be calculated.

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

Answer 10

C

Summary Introduction

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.

Answer 11

C

Summary Introduction

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. C - Bold Vision, Inc., makes laser printer and...Ch. C - Prob. 2P Ch. C - Prob. 3P Ch. C - One-Eyed Toad Pottery makes custom planters for...Ch. C - Prob. 5P Ch. C - To boost sales, Pfisher (refer to Solved Problem...Ch. C - Prob. 7P Ch. C - Prob. 8P Ch. C - Prob. 9P Ch. C - Prob. 10P

The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

Solution Summary: The author explains that the Bucks Grande baseball team's cost per order is 100, with a holding cost of 38% of purchase price.

Concept explainers

Videos

Interpretation: The total annual cost for best ordering quantity is to be calculated.

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.

Want to see the full answer?

Chapter C Solutions

The number of baseballs per order by the Bucks Grande baseball team as cost per order is $100, holding cost of 38% of purchase price and following information Concept Introduction: Ordering Optimum size (creating no additional or shortage of materials in stock) at minimum ordering cost is EOQ

Solution Summary: The author explains that the Bucks Grande baseball team's cost per order is 100, with a holding cost of 38% of purchase price.

Concept explainers

Videos

Interpretation: The total annual cost for best ordering quantity is to be calculated. Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.

Want to see the full answer?

Chapter C Solutions

Interpretation: The total annual cost for best ordering quantity is to be calculated.

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost

Interpretation: Identifying affect on order quantity when there is additional purchase of 15000 base ball and reduction of price to $6.25 each

Concept Introduction: Aggregation of annual holding & ordering &material costs gets total cost.