a) Cycle Inventory b) Total cost c) Reorder level if lead time is constant at 4 days
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a) Cycle Inventory
b) Total cost
c) Reorder level if lead time is constant at 4 days
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- Intan Store sells 240,000 cabinets per year. Based on the company's policy, a safety stock of 4 percent from yearly sales is to be maintained. The carrying cost is RM0.60 per unit annually and the ordering costs are RM150.00. The delivery time is 10 days. Order should be placed in multiple of 100 units. i. Compute the economic order quantity (assume 360 days per year). ii. Compute the total inventory cost. iii. Compute the reorder inventory level. iv. Compute the average inventory please answer completeIntan Store sells 240,000 cabinets per year. Based on the company's policy, a safety stock of 4 percent from yearly sales is to be maintained. The carrying cost is RM0.60 per unit annually and the ordering costs are RM150.00. The delivery time is 10 days. Order should be placed in multiple of 100 units. i. Compute the economic order quantity (assume 360 days per year). ii. Compute the total inventory cost. iii. Compute the reorder inventory level. iv. Compute the average inventory. Please answer only part 4A shop sells 5000 glasses in a year and the sales are relatively constant throughout the year. The glasses are purchased from Italy for RM 16.00 each. The lead time is 2 days. The holding cost per glass per year is RM 1.50 and the ordering cost per order is RM 8.00. There are 250 working days per year. What is the total annual inventory cost (including the purchase cost)? What is the duration between orders? What is the Re-order Point (ROP)?
- Amber Pvt Ltd sells 240,000 stools per year. Based on the company's policy, a safety stock of 4 percent from yearly sales is to be maintained. The carrying cost is $0.50 per unit annually and the ordering costs are $180. The delivery time is 10 days. Order should be placed in 100 units and there is 360 days in a year. Compute: The economic order quantity The total cost of holding inventory. The reorder inventory level. The number of orders placed annually.A shop sells 5000 glasses in a year and the sales are relatively constant throughout the year. The glasses are purchased from Italy for RM 16.00 each. The lead time is 2 days. The holding cost per glass per year is RM 1.50 and the ordering cost per order is RM 8.00. There are 250 working days per year. a. What is the Economic Order Quantity (EOQ)? b. What is the average inventory and the annual inventory cost? c. In minimising the cost, how many orders would be made each year? What would be the ordering cost? d. What is the total annual inventory cost (including the purchase cost)? e. What is the duration between orders? f. What is the Re-order Point (ROP)?MGR Corporation sells table napkins. These are sold by dozen per package for Php 20. They sell 2,000 packages per month. Each package sells at Php 10 and requires 6 days lead time from date of order to date of delivery. The ordering cost is at Php 1.20 and the carrying cost is 10% per annum. a. Assuming that the present inventory level is 200 packages and there is no safety stock, when is the next order placed (use 360 days/year)
- A shop sells 5000 glasses in a year and the sales are relatively constant throughout the year. The glasses are purchased from Italy for RM 16.00 each. The lead time is 2 days. The holding cost per glass per year is RM 1.50 and the ordering cost per order is RM 8.00. There are 250 working days per year. What is the Economic Order Quantity (EOQ)? What is the average inventory and the annual inventory cost? In minimising the cost, how many orders would be made each year? What would be the ordering cost? What is the total annual inventory cost (including the purchase cost)? What is the duration between orders? What is the Re-order Point (ROP)?A national chain of tyre fitters (tiger wheel and tyres) stocks a popular tyre for which the following information is available. The company operates on 50-weeks a year and normally operates from Monday to Friday only. Ordering Costs per order N$175.50 Holding Cost per unit 3 % of unit cost Cost per tyre N$1 800 Reorder quantity 5 000 Lead time 12 to 16 days Maximum usage 175 tyres per day Minimum usage 90 tyres per day Average usage 140 tyres per day Estimate the minimum level of inventoryA national chain of tyre fitters (tiger wheel and tyres) stocks a popular tyre for which the following information is available. The company operates on 50-weeks a year and normally operates from Monday to Friday only. Ordering Costs per order N$175.50 Holding Cost per unit 3 % of unit cost Cost per tyre N$1 800 Reorder quantity 5 000 Lead time 12 to 16 days Maximum usage 175 tyres per day Minimum usage 90 tyres per day Average usage 140 tyres per day 1. Calculate the minimum level of inventory 2. Calculate the maximum level of inventory
- 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 minimum annual total holding and ordering cost? Round-up to the nearest integer Select one: a. 100 b. 104 47 c. 69 d. 1521. Demand is Normally distributed with a mean of 66 per week and a weekly variance of 3. The ordering cost is $57.5. Lead time is 8 weeks. Shortages cost an estimated $4.14 per unit short to expedite orders to appease customers. The holding cost is $7.06 per week. Estimate the stockout risk if the target service level is 0.22. 2. Demand is Normally distributed with a mean of 43 per week and a weekly variance of 8. The ordering cost is $83.26. Lead time is 4 weeks. Shortages cost an estimated $1.96 per unit short to expedite orders to appease customers. The holding cost is $9.2 per week. Calculate ROP if the target service level is 95%.Sells 360,000 tennis balls per year. The tennis balls cost Dennis Sport World RM15 per dozen. Annual inventory carrying costs are 20% of inventory price. The cost of placing and receiving an order are RM72. Assuming the inventory replenishment occurs virtually instantaneously. Based on recent experience, Dennis Sport World uses 7 days delivery time for planning purposes. (Assume 360 days in a year) a) Calculation of the Economic Order Quantity? b) Calculation of the number of orders to be placed? c) Calculation of the total annual inventory costs? d) Determination of the reorder point?