Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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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…
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