How do I do Question 1? Exercises1. Harley-Davidson has its engine assembly plant in Milwaukeeand its motorcycle assembly plant in Pennsylvania. Enginesare transported between the two plants using trucks, witheach trip costing $1,000. The motorcycle plant assembles andsells 300 motorcycles each day. Each engine costs $500; Har-ley incurs a holding cost of 20 percent per year. How manyengines should Harley load onto each truck? What is thecycle inventory of engines at Harley?2. As part of its initiative to implement just-in-time (JIT) manu-facturing at the motorcycle assembly plant in Exercise 1,Harley has reduced the number of engines loaded on eachtruck to 100. If each truck trip still costs $1,000, how doesthis decision affect annual inventory costs at Harley? Whatshould the cost of each truck be if a load of 100 engines is tobe optimal for Harley?3. A North Face retail store in Chicago sells 500 jackets eachmonth. Each jacket costs the store $100 and the company hasan annual holding cost of 25 percent. The fixed cost of areplenishment order (including transportation) is $100. Thestore currently places a replenishment order every month for500 jackets. What is the annual holding and ordering cost?On average, how long does a jacket spend in inventory? If theretail store wants to minimize ordering and holding cost,what order size do you recommend? How much would theoptimal order reduce holding and ordering cost relative to thecurrent policy?4. Target purchases home goods made by a supplier in China.Target's stores in the United States sell 200,000 units ofhome goods each month. Each unit costs $10 and the com-pany has an annual holding cost of 20 percent. Placing areplenishment order incurs clerical costs of $500/order. Theshipping company charges $5,000 as a fixed cost per ship-ment along with a variable cost of $0.10 per unit shipped.What is the optimal order size for Target? What is the annualholding cost of the optimal policy? How many orders peryear does Target place? What is the annual fixed transporta-tion cost? What is the annual variable transportation cost?What is the annual clerical cost?5. Amazon sells 20,000 units of consumer electronics fromSamsung every month. Each unit costs $100 and Amazon has

The optimal level of inventory that a company should maintain such that it is able to incur least…

. Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported between the two plants using trucks, with each trip costing $1,000. The motorcycle plant assembles and sells 300 motorcycles each day. Each engine costs $500; Har- ley incurs a holding cost of 20 percent per year. How many engines should Harley load onto each truck? What is the cycle inventory of engines at Harley?

. Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported between the two plants using trucks, with each trip costing $1,000. The motorcycle plant assembles and sells 300 motorcycles each day. Each engine costs $500; Har- ley incurs a holding cost of 20 percent per year. How many engines should Harley load onto each truck? What is the cycle inventory of engines at Harley?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Al Fursan Inc. needs 300 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO1 per kg. The company is operating 6 days per week. What is the expected time (in days) between order? Round-up to the nearest integer Select one: a. 55 b. 53 c. 207 d. 105 e. 58
EOQ for Production Lots ExerciseA Power Company buys coal from a Coal mine togenerate electricity in rural areas. The Coal minecan supply coal at the rate of 3,500 tons per day for$10.50 per ton. The Power Company uses the coalat a rate of 800 tons per day and operates 365 daysper year. The annual carrying cost for coal is 20%of the acquisition cost, and the ordering cost is$5,000.a) What is the economical production lot size?b) What is the Power Company’s maximuminventory level for coal?
Al Fursan Inc, needs 300 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it takes 16 work days to receive it. The annual holding cost is 15 % of purchase price. The price RO 1 per kg. The company is operating 6 days per week. What is the economic order quantity (EOQ)? Round-up to the nearest integer- Select one: a. 593 kg b. 693 kg c. 690 kg d. 267 kg
Academic) s Management Fall20 Al Khaleej Inc. needs 440 kgs of a material per month. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. What is the expected time (in weeks) between order? Round-up to the nearest integer Select one: O a. 185 O b. None is correct O c. 105 O d. 111 O e, 207
11. Combate uses 100,000 units of Material X Annually I its production. Ordering cost consists of P1,000 for placing a long distance call o make the order and P4,000 for delivering the order to the company warehouse. Each material cost P10,000 and the carrying costs are estimated at 15.625% of the inventory cost. What is the EOQ?
Race One Motors is an indonesian car manufacturer. Al its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 310 per day, and it uses these subcomponents al a rate of 12.500 per year (of 250 working days) Holding costs are $2 per item per year, und ordering costs are $29 per order. a) What is the economic production quantity 5743 units (round your reaponse to two decimal places) b) How many production runs per year will be made? 19.01 production runs (round your response to two decimal places). c) What wil be the maximum inventory leve? 55139 units (round your response to wo decimal places) d) What percentage of ime will the faclity be producing components? 16.12% (enter your response as a percentage rounded to two decimal places). e) What is the annual cost of ordering and holding inventory? S 651.30 (round your response to hwo decimal places)
I NEED IT TODAY, 1. B&H needs to decide how to manage its inventory of cameras. The demand for cameras at B&H is 200 cameras per week. Each time that B&H places an order for a new shipment of cameras, it must pay $80 in fixed processing fees. A camera costs B&H $60 to purchase. The cost for B&H to hold a camera in its store for one week is $4. Assume that the lead time for the delivery of a camera is 0 weeks.a. Suppose that B&H places orders for cameras in quantities of 50 cameras at a time and places a new order for cameras each time that it runs out. Draw a graph showing the number of cameras that B&H has on-hand in inventory at each point in time up until the time when it places its fourth order. Label the points in time at which B&H places a new order. Assume that B&H places its first order for 50 cameras on day 0.b. Suppose again that B&H places orders for 50 cameras at a time. What will be B&H’s average holding costs per week? What will…
Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.25 per bag. What is the optimal total cycle time including the production time in year? a. 0.127 Ob. 0.18 C .160 D .146 e. 0.137 None is correct
example 15.1 Economic Order Quantity and Reorder Point Find the eco- nomic order quantity and the reorder point, given Annual demand (D) = 1,000 units Average daily demand (d) = 1,000/365 Ordering cost (S)= $5 per order Holding cost (H) = $1.25 per unit per year Lead time (L) = 5 days Cost per unit (C) = $12.50 %3D %3D %3D What quantity should be ordered?
12. Nestle Ltd. It produces its premium plant food in 40 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag. What will the optimal maximum inventory level on hand end of each production run? Round - up to the nearest integer? a. 7532 b. 6500 c. 6737 d. 6837 e. None is correct
10 Use the information presented in the graph to answer the following questions: Annual Cost C3 C2 Q1 You are also given the following information: Q1 =450 .Q2 = 700 C1 = 350 C2 = 750 1300 Q2 Order Quantity Which annual inventory cost component does the blue line represent? Total cost Which annual inventory cost component does the green line represent? Holding cost What is the Economic Order Quantity (EQ9) based on th Which annual inventory cost component does the red line represent? Ordering cost 220