QUESTION 11 Suppose you are a newspaper supplier. It costs you $0.40 to produce a newspaper. You sell each newspaper at $0.8 to a retailer, and the retailer sells each newspaper to its customers for $1.2. You are responsible for making production quantity decision and the retailer will buy all the production units from you. All the unsold newspaper will be returned to you and you refund them to the retailer. If you want to maximize your own profits, what should be the optimal service level? O 04 0.3 0.5 0.66 QUESTION 12 What would be the optimal service level if you and the retailer wish to maximize the total supply chain profits? O 0.3 0.4 0.5 0.66 QUESTION 13 Now suppose the retailer pays back each unsold newspaper to you. What would be the optimal payback rate at which the supply chain profit is maximized? Please submit your complete worked out answers.

QUESTION 11 Suppose you are a newspaper supplier. It costs you $0.40 to produce a newspaper. You sell each newspaper at $0.8 to a retailer, and the retailer sells each newspaper to its customers for $1.2. You are responsible for making production quantity decision and the retailer will buy all the production units from you. All the unsold newspaper will be returned to you and you refund them to the retailer. If you want to maximize your own profits, what should be the optimal service level? O 04 0.3 0.5 0.66 QUESTION 12 What would be the optimal service level if you and the retailer wish to maximize the total supply chain profits? O 0.3 0.4 0.5 0.66 QUESTION 13 Now suppose the retailer pays back each unsold newspaper to you. What would be the optimal payback rate at which the supply chain profit is maximized? Please submit your complete worked out answers.

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...

See similar textbooks

Similar questions

Question 1: Considering that the annual demand of a product is 5000 orders, the retention cost is i=0.2 in terms of the price of the product and the order cost is 49 TL, do you calculate the most appropriate order amount and how many times a year to order by taking into account the following price offers? Order Quantity Price 1 1-999 5 1000-1999 4.8 3 2000 and more 4.75
QUESTION 5 Diskup produces a variety of personal computer products. High-density 3.5-inch disks are produced at a rate of 1,800 per day and are shipped out at a rate of 800 per day. The disks are produced in batches. Each disk costs the company 20 cents, and the holding costs are based on an 18 percent annual interest rate. Shortages are not permitted. Each production run of a disk type requires recalibration of the equipment. The company estimates that this step costs $180. Assume that 1 year=365 days. What is the maximum dollar investment in inventory that the company has in these disks? 805.54
Q3. What is inventory management? Explain in brief 4 functions of inventory management.
Question 1 A paint manufacturer uses 3,200 liters of chemicals a year. Currently the firm purchases 400 liters per order and pays $3 per liter. To secure more long-term business, the supplier is willing to sell at $2 per liter for orders that is 1,000 liters or more. The paint manufacturer incurs an ordering cost of $100 and holding cost of 17% of the purchase price per liter. a) Determine the order size that will minimize the total cost. b) If the supplier offered the discount at 1,500 liters instead of 1,000 liters, what order size would minimize total cost?
QUESTION 10 An automotive warehouse stocks a variety of parts that are sold at neighborhood stores One particular part, a popular brand of oil filter, is purchased by the warehouse for $1.50 each. It is estimated that the cost of order processing and receipt is $100 per order. The company uses an inventory carrying charge based on a 25 percent annual interest rate. The monthly demand for the filter follows a normal distribution with mean 280 and standard deviation 70. Order lead time is assumed to be five months. Assume that if a filter is demanded when the warehouse is out of stock, then the demand is back-ordered, and the cost assessed for each back-ordered demand is $12.80. Determine the optimal values of the order quantity and the reorder level Q= 1358 R= 1765
Question 11 You are responsible for maintaining an appropriate amount of inventory for Component A, using a Q-type inventory control system (fixed quantity, continuous review). Your company estimates your ordering cost to be 500 and the annual cost of holding this item in inventory to be 12. Annual demand for this item is forecasted to be 5,000 and the company has 300 working days per year. Your supplier's lead time is 15 days. What should your reorder point be if the standard deviation of daily demand is 30 and your target customer service level is 95%? (Round to the nearest integer.) Your Answer: Answer Question 12 You are responsible for maintaining an appropriate amount of inventory for Component A, using a P-type inventory control system (periodic review) with P=30. Your supplier's lead time is 20 days. Daily demand averages 400, with a standard deviation of 200. How much safety stock will you need if your target customer service level is 95%? (Round to the nearest integer.) Your…
question #3 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. With a safety stock of 300 boxes, what is the approximate service level (round to two decimals)? Numeric Response 84.13 * f5 10 f6 0 4- ♫+ fg C fil W f12. insert prt sc + 11 Ə ← delete backspace home num lock 4x D end 1:23 PM 11/15/2022 pg up
question #2 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. If the retailer wants to achieve a 99% service level (use the z-value with one decimal, as in Table 13.4 on page 400 of the textbook), what should be the safety stock value? Numeric Response 772.8 SHARE f5 f6 4- f7 ♫+ fg fil W f12. insert prt sc delete home @ 0 end 1:23 PM 11/15/2022 pg L
question #5 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. Under the current order quantity of 5,000 boxes and current reorder point of 4,200 boxes, what would be the order-up-to level S that the retailer should use as a baseline to calculate how much inventory to order when conducting a periodic review? Numeric Response 1500 f4 ***** LA f5 40 % f6 4- 0 C + & 7 < Prev. 門 fg KAA * 8 5 of 5 DII hp f10 DDI 9 Next fi W f12. insert prt sc + 11 ( ← delete backspace home num lock end 1:24 PM 11/15/2022 pg up
QUESTION 13 The return to any factor of production that is in variable demand variable supply fixed demand fixed supply is pure rent.
Question2: A company that sells fruit juices sells 1250 cases of fruit juice from cases priced at $50 per case in a month. The business is in city x and juices are ordered from city y. Each order costs the business $250. Storage costs are 20% of a case of fruit juice. According to this;a) the economic order quantity of the enterprise?b) How many days is the time between two orders?c) What is the total inventory cost of the business, including the acquisition costs, in dollars/month?
Question 30 Firm B's demand for a product is 10 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with a 10% discount for orders of 25 units or higher. Firm B incurs a 30% annual holding cost. How much does Firm B save each year (including purchasing, ordering, and holding costs) if it purchases enough units to get the discount? Group of answer choices $2.25 $6.00 $120.00 $122.25