avity 8: Operations Manager of Swatch wristwatch wants to determine the most optimum inventory practice for the company. She was able to determine the demand and inventory cost needed in her analysis. The figures are summarized below. What is the economic order quantity? How much is the total annual inventory cost? And how many units should be purchased? Annual Demand D (units) 5,000 Discount Discount Cost/Unit C Discount Ordering Cost per order Co (Php000) 150 Level Quantity (Php000) Holding Cost as percentage I (Php000) 95% 1 0-999 200 2 1000-1999 200 3 2000 and up 200 18888 (%)

avity 8: Operations Manager of Swatch wristwatch wants to determine the most optimum inventory practice for the company. She was able to determine the demand and inventory cost needed in her analysis. The figures are summarized below. What is the economic order quantity? How much is the total annual inventory cost? And how many units should be purchased? Annual Demand D (units) 5,000 Discount Discount Cost/Unit C Discount Ordering Cost per order Co (Php000) 150 Level Quantity (Php000) Holding Cost as percentage I (Php000) 95% 1 0-999 200 2 1000-1999 200 3 2000 and up 200 18888 (%)

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Economic Order Quantity and Reorder PointFind the economic order quantity and the reorder point, givenAnnual demand ( D )= 1, 000 unitsAverage daily demand ( d¯ ) = 1, 000 ∕365ordering cost ( S ) = $5 per orde rHolding cost ( H ) = $1.25 per unit per yearLead time ( L ) = 5 daysCost per unit ( C ) =$12.50What quantity should be ordered?
Pls solve this question correctly in 5 min i will give u like for sure Question # 1 Teresa Cohan is attempting to perform an inventory analysis on one of her most popular products. Annual demand for this product is 5,000 units; unit cost $200; carrying cost is considered to be approximately 10% of the unit price. Order costs for her company typically run nearly $30 per order and lead time averages 10 days. Discounted unit cost of Rs. $150 (carrying cost remain the same) for more than 300 units is also being offered. (Assume a 50-week year. a)What is economic order quantity? b)What is the reorder point? c)What is the total carrying + ordering cost? d)What is optimal number of orders per year? e)Would you recommend availing the discount?
Black Instrument Company replenishes highly specialized replacement (service) parts based on statistical reorder point. One part is a 40-mm thumbscrew. Relevant data for the thumbscrew are: Planned stock out frequency= Six per year. Planned lead time = 2 weeks Forecast for next week= 300 Batch size = 400 Standard deviation of demand = 20 (per week) What is the reorder point? What would be the effect on the ROP if lead time were five weeks instead of two? What other factors might impact your decision on when to reorder parts?
Q1) Cannon sells 22mm lens for digital cameras. The manager considers using a continuous review policy to manage the inventory of this product and he is planning for the reorder point and the order quantity in 2021 taking the inventory cost into account. The annual demand for 2021 is forecasted as 400+10*6 and expected to be fairly stable during the year. Other relevant data is as follows: The standard deviation of the weekly demand is 10. Targeted cycle service level is 90% (no-stock out probability) Lead time is 4 weeks Each 22mm lens costs $2000 Annual holding cost is 25% of item cost, i.e. H=$ 500. Ordering cost is $1000 per order Using your student number calculate the annual demand. (e.g., for student numberBBAW190102, the last digit is 2 and the annual demand is 400+10*6=420) Using the annual demand forecast, calculate the weekly demand forecast for 2021 (Assume 52 weeks in a year)? What is the economic order quantity, E0Q? What is the reorder point and safety stock? 5-…
Catlea Merchandising is engaged in selling school shoesfor both boys and girls in their teenage years. Catlea needs 32,000 pairs of shoes in a year in order to satisfy the market demand. It costs ₱ 48 to place an order while ₱ 8 is needed to hold each quantity of shoe in Catlea's inventory. Upon checking on Catlea's supplier, it takes 8 days in between placing an order and eventually receiving it. a. Determine the Economic Order Quantityb. Determine the number of order per monthc. Determine the reorder point
10. A company will sell remote control devices online. Expected yearly demand is 3000 units and it is sold per 250TL. The controllers can be purchased from supplier A. Ordering cost is 40 TL and annual holding cost is 25% of the price. a. Calculate the economic order quantity for the company. b. Calculate the number of orders per year. c. List the assumptions of EOQ model that you used to calculate the value in part A.
Give A brief introduction about different types of models used in Inventory Control (EOQ - EBQ - Probabilistic Demand).
Replenishment of Regular Stocks of Farmacia Romy & Fe The following are the details regarding the stocks on Paracetamol tab 500 mg of Farmacia Romy & Fe: (a) 150 tablets are sold daily (b) 4 boxes of 100s are on hand as stocks of the drugstore (c) Inventory is every 30 days What should be the Order Quantity for the Paracetamol product? 150 tablets 400 tablets 4,500 tablets 4,900 tablets 50 boxes None of the given choices How is the quantity to be ordered computed or determined? Order Quantity = Average Daily Movement x (X)Days + Regular Order Order Quantity = (Average daily off take x Inventory days ) – Stock-on-hand Order Quantity = (Average daily off take x Inventory days ) + Stock-on-hand Order Quantity = Average Daily Movement x (X)Days -- Regular Order None of the given choices
Epworth Co. predicts that it will use 360,000 gallons of material during the year. It anticipates that it will cost $72 to place each order. The annual carrying cost is $4 per gallon. a. Determine the most economical order quantity by using the EOQ formula. b. Determine the annual order and carrying costs at the EOQ point.
Why do we use "Specifications or bill of material" in the dependent inventory model?
A jewelry shop procures a ring at $20 each and sells it at $80 each. Weekly demands for the ring over the past 20 weeks are as follows. Demand 51 52 53 54 55 56 57 58 59 60 Frequency o 1 3 2 2 3 4 2 2 1 What are the under-stocking and over-stocking costs for the shop? What is the newsvendor critical ratio? How many rings per week should the shop order? Suppose that the weekly demand is uniformly distributed between 40 and 80. How many rings per week should the shop order?