Consider a product with a daily demand of 150 units, a setup cost of $100, and a holding cost per unit of 11% of the $35.00 product cost.The firm operates and experiences demand 275 days per year.a. What is the Economic Order Quantity? [Select]b. What is the average inventory on hand? [Select]c. What are the number of orders per year? [Select]d. What are the total holding costs? $ [Select]>e. What if the company decided to order 1,100 units instead of the EOQ, what is the ordering cost? $ [Select]

Daily demand = 150 Holding cost (H)= 11% *35 = 3.85 Ordering cost (S)= $100 Operating days = 275…

Answered: Consider a product with a daily demand…

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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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.)
ABC Inc. orders components for distribution at a monthly demand of 900 units. Holding costs are 15% of the unit cost of $23.75. The ordering cost is $47.35. The company operates 240 days per year a. If the company wishes to effectively procure these components, what would be the optional amount to order? [Select] b.. What is the average inventory? [Select] c. How many order cycles are there per year? [Select] d. What are the total cost of managing the inventory? $ [Select] e. What is the total cost, including the cost of the inventory? [Select ] f. What is ABC Inc. decided to order 600 components, what impact would it have on holding costs? [Select] >
Edwarldo’s Manufacturing uses 2,400 units of a product per year on a continuous basis. The product Carrying Cost are $60 per year and Ordering Cost are $250. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. Show Computations and Explanations. A. Calculate the Economic Order Quantity (round up the answer to the nearest whole unit) (Format: 111) B. Calculate the Total Cost per year to order and carry this item. (Format: 1,111) C. Their supplier has notified the company that if they increase their order quantity by 58 units, they will give the company a discount. Calculate the Dollar Discount that the company will have to at least give to Edwarldo’s Manufacturing to be indifferent. (Format: 111)
Controlling inventory levels does not come under the scope of purchase management. Select one: a. True. b. False.
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. Southeastern estimates its annual holding cost for this item to be $24 per unit. The cost to place and process an order from the supplier is $73. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days.
Please do not give solution in image format thanku Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2, 750 rolls. The cost per roll is 500$, and the annual holding cost is 28percent of the cost. Each order costs 45$. 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.)
Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25.00 for each order, with an annual holding cost of $24.00. a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your response to the nearest whole number). b) What is the economic order quantity? units (round your response to the nearest whole number). Order Size 25 40 50 60 100 Total Cost ($)
In which of the method of inventory valuation, control of inventory is not possible a. Continuous inventory system b. Perpetual inventory system c. Periodic inventory system d. ABC analysis
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?
The EOQ minimizes the sum of the ordering cost and which of the following costs?a. Stockout cost c. Purchasing costb. Holding cost d. Quality cost
If annual demand = 2500, order cost = $50, annual holding cost rate = 15%, and the purchase price = $120 for orders of less than 10,000 units, or $105 for orders of 10,000 units or more, should you take the discount? Also, what is the minimum total cost? ? a. No--$116,280 b. Yes--$208.477 c. No--$341,263 d. Yes--$302,120
NEED ALL THREE QUESTIONS Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $9 per unit of average inventory. Every time an order is placed for more item X, it costs $6. a. Whenever item X is ordered, what should the order size be? (Round your answer to the nearest whole number.) b. What is the annual cost for ordering item X? (Round your answer to 2 decimal places.) c. What is the annual cost for storing item X? (Round your answer to 2 decimal places.)

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