bA manufacturer of Golf Cart purchases the seat portion of the stroller from asupplier who lists these prices : less 1,000 seats, SR 10 each; 1000 to 3999, 7each: 4000 to 5999, SR 5 each; and 6000 or more SR 4 each. Ordering costs areSR 50 and the annual usage is 6000 seats. Determine an order quantity which willminimize total cost under the following situation:If the annual carrying cost is 20 percent of the purchase price?a.If the annual carrying cost is SR 3 per seat?Submet asONU

If the calculated EOQ falls in given range, the EOQ will be considered else the lower limit of the…

Answered: b A manufacturer of Golf Cart purchases…

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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= Cesar Rego Computers, a Mississippi chain of computer hardware and software retail outlets, supplies both educational and commercial customers with memory and storage devices. It currently faces the following ordering decision relating to purchases of disks: DS I Quantity needed to qualify for the discount = 5,900 disks. What is the EOQ? Purchase price Discount price not take EOQ = 3071 units (round your response to the nearest whole number). Should the discount be taken? Since the total cost with discounted volume is should take 36,100 disks $25 22% $0.87 $0.81 the discount, provided other factors such as storage space, etc. permits. the total cost at the EOQ volume, Cesar Rego ncc
Cesar Rego Computers, a Mississippi chain of computer hardware and software retail outlets, supplies both educational and commercial customers with memory and storage devices. It currently faces the following ordering decision relating to purchases of disks: 35,000 disks $23 22% Purchase price Discount price $0.88 $0.81 Quantity needed to qualify for the discount = 5,900 disks. %3D What is the EOQ? EOQ = units (round your response to the nearest whole number).
Explain why it is not necessary to include product cost (price or price time quanity in the EOQ model, but the quantity discount model requires this information ?
13.37. Kelly's Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 20 gallons and a standard deviation of 4 gallons. The lead time required to receive an order of beer from the local distributor is 12 days. Determine
Define each of the following terms: c. Economic Ordering Quantity (EOQ); EOQ model; EOQ range
7. Explain why it is not necessary to include product cost (price or price times quantity) in the EOQ model, but the quantity inventory system. discount model requires this information.
K Cesar Rego Computers, a Mississippi chain of computer hardware and software retail outlets, supplies both educational and commercial customers with memory and storage devices. It currently faces the following ordering decision relating to purchases of disks: D S I Purchase price Discount price Quantity needed to qualify for the discount = 5,900 disks. What is the EOQ? 36,100 disks $25 22% $0.87 $0.81 EOQ = units (round your response to the nearest whole number). ncorrect
Explain the quantity of economic order (EOQ) and its effect on operating costs.
Compare and contrast the fixed quantity and fixed interval versions of EOQ. In what contexts will each be appropriate?
Explain Fixed–Order Quantity Models?
Explain the concept of setup or ordering costs and its relevance to EOQ.
Barangay Punta Princesa is trying to decide between two alternative order plans for its inventory of face masks. Irrespective of the plan to be followed, demand for the item is expected to be 1,000 units annually. Under Plan A, Barangay Punta Princesa through their purchasing officer is using a digital platform for ordering: order costs would be Php 40 per order. Inventory holding costs (carrying costs) would be Php 100 per unit per annum. Under Plan B order costs would be Php 30 per order. And holding costs would 20% and unit cost is Php 480. Find out EOQ and Total Inventory cost, then come up with your decision which plan would result in the lowest total inventory cost?

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