EXERCISE #12Panah Hati Kaseh Enterprise has business information as follows:Daily demand = 140 unitsBusiness Days = 49 weeksSafety stock = 4%Holding cost = $0.12 per unitProduction = 380% of daily demandLead time = 2 weeks%3DOrdering cost = $2000 per orderPurchase Price%3D%3D$32.12 per unit%3DCalculate the size of Kanban and level of maximum inventory.

This question is related to the topic of Inventory Management and this topic falls under the…

Answered: EXERCISE #12 Panah Hati Kaseh…

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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First image is an example on how to do this exercise. Table one is a reference I need help to find the target inventory, T Sam's Cat Hotel operates 52 weeks per year, 6 days per week. It purchases kitty litter for $8.00 per bag. The following information is available about these bags: ≻Demand = 55 bags/week ≻Order cost = $70/order ≻Annual holding cost = 22 percent of cost ≻Desired cycle-service level= 99 percent ≻Lead time = 4 week(s) (24 working days) ≻Standard deviation of weekly demand = 4 bags ≻Current on-hand inventory is 250 bags, with no open orders or backorders. Suppose that Sam's Cat Hotel uses a P system. The average daily demand, d, is 9 bags (55/6), and the standard deviation of daily demand, Standard Deviation of Weekly DemandDays per Week/square root of Days per Week, is 1.633 bags. Refer to the standard normal table for z-values. a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ?…
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 COMPUTE FOR ECONOMIC ORDER QUANTITY (EOQ) PER ORDER CYCLE. THANK YOUUUUU
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…
7. 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 $11.00 per bag. The following information is available about these bags. Refer to the standard normal table for z-values. ≻Demand = 95 bags/week ≻Order cost = $57/order ≻Annual holding cost = 30 percent of cost ≻Desired cycle-service level=98 percent ≻Lead time = 1 week(s) (5 working days) ≻Standard deviation of weekly demand = 20 bags ≻Current on-hand inventory is 350 bags, with no open orders or backorders. a. What is the EOQ? (Enter your response rounded to the nearest whole number.) and (Enter your response rounded to one decimal place.) b. What should R be? (Enter your response rounded to the nearest whole number.) c. An inventory withdrawal of 10 bags was just made. Is it time to reorder? (is or is not)
1. 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 $10.50 per bag. The following information is available about these bags. Refer to the standard normal table for z-values. ≻Demand = 100 bags/week ≻Order cost = $58/order ≻Annual holding cost = 29 percent of cost ≻Desired cycle-service level=92 percent ≻Lead time = 1 week(s) (5 working days) ≻Standard deviation of weekly demand = 18 bags ≻Current on-hand inventory is 300 bags, with no open orders or backorders. a. What should R be? The reorder point is what? bags. (Enter your response rounded to the nearest whole number.)
7. 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 $11.00 per bag. The following information is available about these bags. Refer to the standard normal table for z-values. ≻Demand = 95 bags/week ≻Order cost = $57/order ≻Annual holding cost = 30 percent of cost ≻Desired cycle-service level=98 percent ≻Lead time = 1 week(s) (5 working days) ≻Standard deviation of weekly demand = 20 bags ≻Current on-hand inventory is 350 bags, with no open orders or backorders. d. The store currently uses a lot size of 490 bags (i.e., Q=490). What is the annual holding cost of this policy? (Enter your response rounded to two decimal places.) and (Enter your response rounded to two decimal places.) **select the correct multiple choice answer** e. What would be the annual cost saved by shifting from the 490-bag lot size to the EOQ? (Enter your responses rounded to two decimal places.)
Joe Henry's machine shop uses 2,450 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,450 Holding cost per bracket per year $1.65 Order cost per order $18.50 Lead time 2 days Working days per year 250 a) What is the EOQ? __units (round your response to two decimal places). b) What is the average inventory if the EOQ is used?__ units (round your response to two decimal places). What would be the annual inventory holding cost? $__ (round your response to two decimal places). c) Given the EOQ, how many orders will be made annually?__orders (round your response to two decimal places). What would be the annual order cost? $__ (round your response to two decimal places). d) Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? __ $ (round your response to two decimal places). d)…
40) PLEASE HELP WITH THIS! Gentle Ben's Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $3 per bottle and Is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 100 bottles (closed two weeks per year) with a standard devlation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. b. At what inventory level should he place an order? Note: Use Excel's NORM.S.IN( function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.
Pet Empire operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags. Demand is 90 bags per week, order cost is $54 per order, annual holding cost is 27% of the cost, service level is 80%, lead time is 3 weeks (18 working days), and standard deviation of weekly demand is 15 bags. Current on hand inventory is 320 bags with no open orders or back orders. Require to calculate Economic Order Quantity (EOQ). What would be the average time between orders (in weeks)? Calculate reorder point (R). The store currently uses a lot size of 500 bags (i.e., Q = 500). Calculate the annual holding cost of this policy and also annual ordering cost. Without calculating the EOQ, how can you conclude from these two calculation that the current lot size is too large? What would be the annual cost saved by shifting from the 500-bag lot size to the EOQ? Consider again the…
Discuss what is meant by ABC analysis of inventory.Name several measures that can determine ABCstatus
Retail business's inventory includes goods in process and raw material. True False
The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics:Sales = 8 cases per week Ordering cost = $10 per order Carrying charge = 20 percent per year Item cost = $80 per casea. How many cases should be ordered at a time?b. How often will tea be ordered?c. What is the annual cost of ordering and carrying tea?d. What factors might cause the firm to order a larger or smaller amount than the EOQ?

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