Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for$11.25 per bag. The following information is available about these bags. Refer to the standard normal table for z-values.Demand 85 bags/week- Order cost $56/order> Annual holding cost = 28 percent of cost> Desired cycle-service level = 98 percent> Lead time=1 week(s) (5 working days)-Standard deviation of weekly demand = 16 bagsCurrent on-hand inventory is 300 bags, with no open orders or backorders. e. What would be the annual cost saved by shifting from the 490-bag lot size to the EOQ?The annual holding cost with the EOQ is $. (Enter your response rounded to two decimal places.)

Given: Annual demand D 4420 Holding cost H 3.15 Ordering cost S 56 lead time L 5 Number…

Answered: e. What would be the annual cost saved…

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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Palin’s Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to answer the below questions. Annual demand 3,000 mufflers Standard deviation of daily demand 6 mufflers per working day Item cost $30 per muffler Annual holding cost 25% of item value Review period 15 working days Ordering cost $50 per order Service probability 90% Lead time 2 working days Working days 300 per year What is the optimal target level (order-up-to level)? Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number. If the service probability requirement is 95 percent, the optimal target level will: multiple choice Increase Decrease Stay the same
An integrated circuit manufacturer’s annual cost of holding inventory is 48 percent.What inventory holding cost (in $) does it incur for an item that costs $300 and has aone-month supply of inventory on average?
Given Information Service Level - 95% (z value= 1.6649) Order Cost - $125Order Cycle (weeks) - 4, 5, 6, 7, 8Lead Time (weeks) - 2 weeksOperating Time - 52 weeks Standard deviation = 69.3237 Variable Holding Cost - 12.019% Fixed Holding Cost - 1,659,317.307 QUESTION: Compute for annual variable holding cost. Formula Given: (EOQ/2) x (Unit cost x Percentage Value of Inventory)
Apply the EOQ model to the following quantity discount situation for which D 800 units per year, Ca- $45, and the annual holding cost rate is 20%. (Round your answers to the nearest integer.) Discount Category Discount (%) Order Size Unit Cost Order Quantity O to 99 $10.00 100 or more $9.70
42- Muscat Bakery buys flour and uses an average of 1215 kg a year. The cost of ordering the flour involves RO 10. The annual carrying cost is RO 75 per unit. What is the total ordering cost? a. RO 475 b. RO 675 c. RO 575 d. RO 775
20. A large law firm uses a constant 50 reams of copier paper per day. The lead timefor the paper is approximately normal, averages 9 days, and has a standard deviationof 3 days. What reorder point provides a service level of 90%?
Part Number Part Unit Value in $ Quantity currently in inventory Average annual usage 1234 2.5 3000 1235 0.2 900 1236 15 1000 1237 0.75 7900 1238 7.6 2800 1239 4.4 5000 1240 1.8 1800 1241 0.05 1200 1242 17.2 2000 1243 2500 1244 7000 300 550 400 50 180 20 200 10 950 160 430 9 3.2 given following table, perform ABC classification
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%?
William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H 20,000 units/year $27/order $3/unit/year a) The EOQ for the workbooks is 600 (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ your response to the nearest whole number). (round
For an item with an average daily demand of 70 units with a standard deviation of 4 units, an average lead time of 8 days with a standard deviation of 2 days, and a 99.2% service level, the reorder point is about: O 898 O 842 O 560 O 954 O 1191
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 3,000 rolls. The cost per roll is $1,000, and the annual holding cost is 28 percent of the cost. Each order costs $75. Part 2 a. How many rolls should Yellow Press order at a time? Yellow Press should order enter your response here rolls at a time. (Enter your response rounded to the nearest whole number.) Part 3 b. What is the time between orders? (Assume 200 workdays per year.) The time between orders is enter your response here days. (Enter your response rounded to one decimal place.)
Annual demand= 360 units Holding cost per year = 1 $ per unit Ordering cost = $ 100 per order Compute EOQ , total cost(holding and ordering cost),no of order per year and expected time (days) between orders(Assuming a 300-day work ) and what would the actual total holding and ordering costs be if the annual demand was actually higher than estimated i.e 500 units instead of 360 units, but the EOQ established above is used. If demand for an item is 3 units per day, and delivery lead time is 15 days, what would be the re-order point?

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e. What would be the annual cost saved by shifting from the 490-bag lot size to the EOQ? The annual holding cost with the EOQ is $(Enter your response rounded to two decimal places.)