53. Average demand for a particular item is 1,200 units per year. It costs $100 to place an ordemfor this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixedorder-interval model is chosen in this instance, how often (on average) will this item be ordereda) Once a monthb) Once every other monthc) Twice a monthd) Twice every three monthse) Three times every two months54. The EOQ model is most relevant for which one of the following?a) Ordering items with dependent demandb) Determination of safety stockc) Ordering perishable itemsd) Determining fixed interval ordering quantitye) Determining fixed order quantity55. What type of process would a paper mill be most likely to use?a) Continuous flowb) Projectc) Job shopd) Flow shop56. The transportation model method that is used to evaluate location alternatives minimizes ta) sourcesb) destinationsc) capacityd) shipping costs

Given- Annual Demand (D)= 1200 units Ordering or Setup Cost (S)= $100 Holding Cost (H) = $24 per…

Answered: 53. Average demand for a particular…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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39) please help me with this Item X Is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2.700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more of item X, it costs $20 c. What is the annual cost for storing item X? Note: Round your order quantity to the nearest whole number and your final answer to 2 decimal places.
Among the following multi-period inventory models, which one has the highest probability of stockout? A. Fixed Order Quantity with Safety Stock B. Fixed Time Period Model C. Fixed Order Quantity D. Both Fixed Order Quantity & Fixed Order Quantity with Safety Stock
At Matthews Car Repair, customer demand for a certain brand of motor oil is normally distributed with a mean of 15 gallons and a standard deviation of 6 work-days. To be 95% sure that Compact Car Repair will not run out of oil, we should reorder when motor oil in stock is less than _______ gallons. a. 24.9 b. 22.6 c. 23.7 d. 20
1. Forrest and Dan make boxes of chocolates for which the demand is uncertain. Forrest says, "That's life." On the other hand, Dan believes that some demand patterns exist that could be useful for planning the purchase of sugar, chocolate, and shrimp. Forrest insists on placing a surprise chocolate-covered shrimp in some boxes so that "You never know what you'll get." Quarterly demand (in boxes of chocolates) for the last three years is shown in the table below: b. If the expected sales for chocolates are 14,400 cases for year 4, use the multiplicative seasonal method to prepare a forecast for each quarter of the year. (Round all intermediate calculations to two decimal places.) The first quarter forecast is what? boxes of chocolates. (Enter your response rounded to the nearest whole number.)
weekly demand for hamleys (a famous toy brand) at a toy store is normally disrtibuted with a mean of 250 and a standrd devaiton of 150.Ther toy store is opened 7 days a week.The toy store owner continoulsy monitors the inventory .Hamleys takes 2 weeks to fill an order with a standard devaiton of 4 days. 1] how much inventory should the sotre carry at the reorder point. 2] how much inventory would that be at the reorder point if the cycle service was increased to 98%?
Green Grass Industries Limited (GGIL) has used a fixed-time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs, are forcing GGIL, to examine alternative ways to reduce the amount of labor involved in inventory stockrooms, yet without increasing other costs, such a shortage costs. Table 10 is a random sample of 20 GGIL's items. Table 10. Annual Usage by Value of a sample of GGIL's Inventory Item Number Annual Usage ($) Item Number Annual Usage ($) 1 10,600 11 2,750 2 14,000 12 1,400 3 4,000 13 3,200 4 16,000 14 2,500 5 8,100 15 110,000 1,800 16 14,800 7 84,000 17 9,500 8. 890 18 1,700 9 940 19 3,700 10 94,000 20 12,500 a) What would you recommend GGIL to do to cut back its labor cost? (Illustrate using an ABC plan). b) Item 18 is critical to continued operations at GGIL. i. How would you recommend it be classified? ii. Give the reason(s) for your answer.
For many firms, inventory usage is not uniformthroughout the year but instead follows some seasonal pattern. Can the EOQ model be used in thissituation? If so, how?
Discuss the role of safety stock in the Wilson approach and its implications for inventory control.
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 $4. Assume that the lead time for the delivery of a camera is 0 weeks.a. Suppose that B&H places orders for cameras in quantities of 50 cameras at a time and places a new order for cameras each time that it runs out. Draw a graph showing the number of cameras that B&H has on-hand in inventory at each point in time up until the time when it places its fourth order. Label the points in time at which B&H places a new order. Assume that B&H places its first order for 50 cameras on day 0.b. Suppose again that B&H places orders for 50 cameras at a time. What will be B&H’s average holding costs per week? What will…
#5. Consider a product that is stocked using periodic review inventory policy. Orders are placed every 21 days, and shipment lead time is four days. Daily demand is normally distributed with a mean of 58 and standard deviation of 16; fulfillment policy is at 97%. You have to do the following: (b) If the current stock is 398, and we are about to place an order, how much do we order?.
Even if we have substantial uncertainty in the parameters in the EOQ-model, it is still quite a useful model. Why?
Xemex has collected the following inventory data for the six items that it stocks: ITEM CODE UNIT COST ($) ANNUAL DEMAND (UNITS) ORDERING COST ($) CARRYING COST AS A PERCENTAGE OF UNIT COST 1 10.60 600 40 20 2 11.00 450 30 25 3 2.25 500 50 15 4 150.00 560 40 15 5 4.00 540 35 16 6 4.10 490 40 17 Lynn Robinson, Xemex’s inventory manager, does not feel that all of the items can be controlled. What ordered quantities do you recommend for which inventory product(s)?

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