The EOQ. No. of orders in a year, and Time between two successive orders
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A: givenD = 57000P = 150 units/hr X 8 hr = 1200 units/dayS = 370/set up
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A: Holding cost = Unit price*Percentage = 2*0.05 = $0.1
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A: EOQ = 2DS/HEOQ = 2*21600*80/2.4EOQ = 1200 tonswhere,D = 12*5*360 = 21600 tonsH = 12*.20 = 2.4/ton
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A: By calculating, EOQ is derived as 229 pounds.
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A: “Since you have asked multiple questions, we will be solving the first question for you. If you want…
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A: THE ANSWER IS AS BELOW:
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A: Hence, the setup cost is $80.
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A: EOQ=2 ×S× Cpi×CuS, Annual demand=1800Price per unit =$2.4i=holding cost=0.3setup cost=$100q1=2…
Q: Should the discount be accepted?
A: Total cost- TC = PD + Co DQ + H Total cost for 2000 units- TC = 900 ×12 ×3.2 + 40 ×900 ×122000 +…
Q: snip
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A: Annual demand (D) = 2000 * 2 = 4000 Ordering cost (O) = 40 Holding/Carrying cost (C) = 20% per…
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A: Average annual cot = Annual holding cost + Annual ordering cost
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A: Given - Monthly demand (d)= 40 pounds Annual interest Rate = 23% = .23 Ordering Cost (S)= $150
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Suppose that a publishing company periodically replenish its supply of paper stock. The paper comes in large rolls and that the printer uses 60 rolls per bi-month. The cost of one roll paper is OMR 150. The cost of replenishment is OMR 10 per order. The cost of keeping the paper on hand, including rent for space occupied, insurance, and interest on the capital tied up is 10 percent per roll per year. Calculate:
- The EOQ.
- No. of orders in a year, and
- Time between two successive orders
- Average yearly cost of Inventory
- Total inventory cost
- Total Cost
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- Suppose that a publishing company periodically replenish its supply of paper stock. The paper comes in large rolls and that the printer uses 8100 rolls per year. The cost of ordering is OMR 20 per order. The cost of keeping the paper on hand, including rent for space occupied, insurance, and interest on the capital tied up is OMR 10 per roll per year. Then, the Minimum Annual Total Inventory Cost is OMR (.....................).(Write the number only) Answer:Suppose that a publishing company periodically replenish its supply of paper stock. The paper comes in large rolls and that the printer uses 90 rolls per quarterly. The cost of one roll paper is OMR 150. The cost of replenishment is OMR 10 per order. The cost of keeping the paper on hand, including rent for space occupied, insurance, and interest on the capital tied up is 10 percent per roll per year. Calculate:I. The EOQ. 2)No. of orders in a year. 3) Time between two successive orders 4)Average yearly cost of Inventory 5)Total inventory cost 6)Total Cost6. Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at a constant rate of 17,000 units per year. It costs Leaky Pipe $5 to process an order to replenish stock and $2.00 per unit per year to carry the item in stock. Stock is received 12 working days after an order is placed. No backordering is allowed. Assume 365 working days a year. d. The demand during lead time is _____ units. (Enter your response rounded to the nearest whole number.) e. The reorder point is ______ units. (Enter your response rounded to the nearest whole number.) f. The inventory position immediately after an order has been placed is _____ units. (Enter your response rounded to the nearest whole number.)
- Q3. Suppose that a publishing company periodically replenish its supply of paper stock. The paper comes in large rolls and that the printer uses 90 rolls per quarterly. The cost of one roll paper is OMR 150. The cost of replenishment is OMR 10 per order. The cost of keeping the paper on hand, including rent for space occupied, insurance, and interest on the capital tied up is 10 percent per roll per year. Calculate: 1)The EOQ. 2)No. of orders in a year, and 3)Time between two successive orders 4)Average yearly cost of Inventory 4)Total inventory cost 5)Total Cost1)..An electrical parts manufacturer purchases circuit board for manufacturing electrical board at the rate of OMR 20 per piece from a vendar . The requirements of these parts are 1000 per quarterly yearly , if the cost per placement of an order is OMR 10 and inventory carrying charges 10 percent of unit cost yearly Calculate : Solve all the 6 1. The EOQ . 2).No. of opers in a year 3). Time between two successive orders 4).Average yearly cost of Inventory 5).Total inventory cost 6).Total Cost44. The Kirei-Hana Japanese Steak House in San Francisco consumes 3,000 pounds of sirloin steak each month. Yama Hirai, the new restaurant manager, recently completed an MBA degree. He learned that the steak was replenished using an EOQ value of 2,000 pounds. The EOQ value was computed assuming an interest rate of 36 percent per year. Assume that the current cost of the sirloin steak to the steak house is $4 per pound. a. What is the setup cost used in determining the EOQ value? Mr. Hirai received an offer from a meat wholesaler in which a discount of 5 percent would be given if the steak house purchased the steak in quantities of 3,000 pounds or more. b. Should Mr. Hirai accept the offer from the wholesaler? If so, how much can be saved? c. Because of Mr. Hirai's language problems, he apparently misunderstood the offer. In fact, the 5 percent discount is applied only to the amounts ordered over 3,000 pounds. Should this offer be accepted, and if so, how much is now saved?
- 1)..An electrical parts manufacturer purchases circuit board for manufacturing electrical board at the rate of OMR 20 per piece from a vendar . The requirements of these parts are 1000 per quarterly yearly , if the cost per placement of an order is OMR 10 and inventory carrying charges 10 percent of unit cost yearly . Calculate : a . The Economic Order Quantity ( EOQ ) b . Total CostAl Fursan Inc. needs 310 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it takes 14 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. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer Select one: a. 194 b. 188 C. 181 d. 175Leaky Pipe, a local retailer of plumbing supplies, faces de-mand for one of its SKUs at a constant rate of 30,000 unitsper year. It costs Leaky Pipe $10 to process an order toreplenish stock and $1 per unit per year to carry the itemin stock. Stock is received 4 working days after an order isplaced. No backordering is allowed. Assume 300 workingdays a year.a. What is Leaky Pipe’s optimal order quantity?b. What is the optimal number of orders per year?c. What is the optimal interval (in working days) betweenorders?d. What is the demand during the lead time?e. What is the reorder point?f. What is the inventory position immediately after an orderhas been placed?
- 4. Westside Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Westside's generator production operation, which is operated at a constant rate, will require 1000 components per month throughout the year (12,000 units annually). Assume that the ordering costs are $25 per order, the unit cost is $2.50 per com- ponent, and annual holding costs are 20% of the value of the inventory. Westside has 250 working days per year and a lead time of 5 days. Answer the following inventory policy questions: a. What is the EOQ for this component? b. What is the reorder point? C. What is the cycle time? d. What are the total annual holding and ordering costs associated with your recom- mended EOQ? 5. Suppose that Westside's management in Problem 4 likes the operational efficiency of or- dering once each month and in quantities of 1000 units. How much more expensive would this policy be than your EOQ recommendation? Would you recommend in favor of the…I need a detailed explanation on how to solve this problem: A paint shop implements an inventory policy on its stock of white paint, which costs the store $6 per can. Monthly demand for cans of white paint is normal with mean 28 and standard deviation 8. The replenishment lead time is 14 weeks. Excess demand is backordered, but costs $10 per back ordered can in labor and loss of goodwill. There is a fixed cost of $15 per order, and the holding cost is based on 30% interest rate per annum. In your computations, assume 4 weeks per month. - Write down the model name and parameters. - What are the optimal lot size and reorder points for white paint (include the formulas)? - What is the optimal safety stock (include the formula)? *** Suppose the paint shop from the above problem adopts a service level policy. - What are the optimal lot size and reorder points for white paint, such that 90% of the cycles are filled without backordering (include all formulas)? - What is the fill rate…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