Biona Enterprise usually gets everyday order of a hundred dozen units while the production can make triple amount of the orders. Thus, any surplus must be deposited in the storage with a cost of $9.50 per unit. Once order takes place, the enterprise will serve it within four working days at $200 for the delivery charges. The enterprise works five days a week and closes it operations three weeks per year while keep some stocks approximately 3% of the yearly demand. Find the optimum value of ordering. The size of Kanban. How frequent the enterprise should deliver the orders in a six-month period?

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...
icon
Related questions
Question
100%

Biona Enterprise usually gets everyday order of a hundred dozen units while the production can make triple amount of the orders. Thus, any surplus must be deposited in the storage with a cost of $9.50 per unit. Once order takes place, the enterprise will serve it within four working days at $200 for the delivery charges. The enterprise works five days a week and closes it operations three weeks per year while keep some stocks approximately 3% of the yearly demand.

  1. Find the optimum value of ordering.
  2. The size of Kanban.
  3. How frequent the enterprise should deliver the orders in a six-month period?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.