The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is$64.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventorycarrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005is used.Once the purchasing manager for SKU 005 places an order, it always takes the vendor 5 working daysto deliver that order. What should the purchasing manager’s reorder point be?) A. 12ОВ. 30Ос. 36O D. 24O E. 5

From the above given information, Demand for SKU OO5, d = 1500 units. Unit price of SKU 005, u = $64…

Answered: The demand for a particular part called…

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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The demand for a particular part called SKU 005 is 1,200 units a year. The cost of one SKU 005 is $40.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. Once the purchasing manager for SKU 005 places an order, it always takes the vendor 5 working days to deliver that order. What should the purchasing manager's reorder point be? O A. 24 O B. 36 O C. 30 O D. 5 O E. 12
6000 units of a part are needed every year. Currently, this part is manufactured internally. Each production run costs 500 dollars to set up. The part costs 5 dollars. The carrying cost is 10% per year. The company has the option of ordering this part from another company. This would increase the part’s cost to 6 dollars, although the fixed cost of ordering would be low at 300 dollars per order. Should the company continue manufacturing the part, or order it? Show your calculations.
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6. The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is $40.00. It costs $50.00 to place an order for SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume 250 working days in the year where SKU 005 is used. (Noteshaper: Scenario #26) а. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005? b. How many of SKU 005 should be ordered, to minimize combined ordering and holding costs? c. The vendor who sells SKU 005 has just offered a 5% discount for orders of 500 or more. Now how many should be ordered? d. Once the purchasing manager for SKU 005 places an order, the vendor requires 7 working days to deliver that order. What should be the purchasing manager's reorder point?
The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is $64.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005? OA. $2050 O B. $1360 O C. $1697 O D. $825 O E. $1200
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A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown below. New Albany Manufacturing is located in Columbus, Ohio, and LaPlaya Manufacturing is located in Monterrey, Mexico. The automobile assembly factory is assumed to operate 250 days per year. CertifiedSupplier OrderSize (Q) Price per Unit (P) OversightCostper Unit (O) TransportCost perUnit (Ct) Order Cost(Co) Cost to StoreOne UnitOne Year (Ch) Order LeadTime inDays (L) New Albany Mfg. 59,000 $11.74 $0.00 $0.37 $255 $1.70 51 LaPlaya Mfg. 118,000 $11.08 $0.42 $0.87 $290 $1.35 99 Use the Total Supply Chain Cost Excel template to compute the supply chain costs associated with each supplier if the annual demand is 1,180,000 brake pads. Do not round intermediate calculations. Round your answer to the nearest dollar. Order quantity: 59,000 units 118,000 units Total procurement cost: $ $ Total management oversight…
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