c. If production rate is 4000 supercapacitors per year, determine: i. the optimal size of a production run, ii. the length of each production run, iii. the average annual holding cost, iv. the average annual setup cost and v. the maximum level of the on-hand inventory.
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- Abdullah records the following monthly purchases and sales of an item. Month Number bought Cost of each unit (€) Number sold November 110 22 73 December 60 26 71 January February March 70 30 49 50 28 53 80 24 37 April 40 32 71 Assuming he has no opening stock (Before November), 1. What is the remaining stock at the end of the period (April)? 2. What is the cost (cost of purchase) of the total inventory (Currency in Saudi Riyals))? 3. If each unit is sold for 35SR, What is the income for Abdullah's company till end of April?Assume that Triksi Co. makes footballs and is trying to determine the quantity of leather it should order every time an order is placed. The relevant information is as follows: I. Over the course of a year 12,000 square meters of leather will be needed, II. The cost of storing 1 square meter of leather is $3, and III. The cost of placing an order is $450 Show Computations and Explanations. A. What is the EOQ? (Formula: 1,111)At Matthews Car Repair, customer demand for a certain brand of motor oil is normally distributed with a mean of 15 gallons and a standard deviation of 6 work-days. To be 95% sure that Compact Car Repair will not run out of oil, we should reorder when motor oil in stock is less than _______ gallons. a. 24.9 b. 22.6 c. 23.7 d. 20
- ABC INVENTORY CLASSIFICATION A company trades with a number of items and the management is interested in classifying the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.The following is a list of the items the company deals with and their respective demand and cost.demand and cost. b) Which of the listed items do you consider to be of great importance for the management of the company?Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,200 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $51. The cost of each light is $1.00. The holding cost is $0.15 per light per year. d. What is the total cost per year, including the cost of the lights? (round your response to two decimal places).8.A certain good with annual demand of 600 units is priced at $20 per unit. It costs $14 to place each order, and the monthly cost of holding each unit of the good is priced at 7% of the good's unit price. Find the Economic Order Quantity (EOQ) assuming 12 working months in a year. Round your answer to the nearest integer. A. 490 B. 32 C. 110 D. 141
- 04/30/2 Problem #1 - Jasper Inc., a company that sells air conditioning units for cars intends to reduce its total annual inventory cost. The annual demand is expected to be 6,000 units if market conditions are unfavorable, and 9,000 units if market conditions are favorable. The Purchasing & Warehousing Manager estimates that the ordering cost is $20.00 per order and the holding cost is $2.00 per unit per year. a. - Calculate the Economic Order Quantity (EOQ), Annual Ordering Cost, Annual Holding Cost and Total Annuarinventory Cost under unfavorable and favorable market conditions. b. - The Purchasing & Warehousing Manager identified two improvement projects in conjunction with her team: Project A: Reduction of ordering cost to $18.00. Project B: Reduction of holding cost to $1.40 per unit per year. Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Which of the projects would you recommend and why? Show all your calculations.The president of Value Filters became very enthusiastic about using EOQs to plan the sizes of her production runs, and instituted lot sizing based on EOQ values before she could properly estimate costs. For one particular filter line, which had an annual demand of 1,800 units per year and which was valued at $2.40 per unit, she assumed a holding cost based on a 30 percent annual interest rate and a setup cost of $100. Some time later, after the cost accounting department had time to perform an analysis, it found that the appropriate value of the interest rate was closer to 20 percent and the setup cost was about $40. What was the additional average annual cost of holding and setup incurred from the use of the wrong costs?4. Distinguish between physical inventory systems and perpetual inventory systems. Give an example of a company that would use each.
- ABC INVENTORY CLASSIFICATION A company trades with a number of items and the management is interested in classifying the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.The following is a list of the items the company deals with and their respective demand and cost.demand and cost. c) Will you be able to decide with the classification tool which of the items can no longer be marketed by the company?A supplier sells MF Tires to dealers. The annual demand is approximately1,000 tires. The supplier pays P50 for each tire and estimates that the annualholding cost is 20 percent of the total value of tires. It costs approximatelyP25 to place an order. The supplier currently orders 80 tires per month.Required:a. Calculate ordering, holding, and total inventory costs for thecurrent ordered quantity.b. Determine the EOQ.c. How many orders will be placed per year using the EOQ?d. Calculate ordering, holding, and total inventory costs for the EOQand also determine the change in total inventory cost.A supplier sells MF Tires to dealers. The annual demand is approximately1,000 tires. The supplier pays P50 for each tire and estimates that the annualholding cost is 20 percent of the total value of tires. It costs approximatelyP25 to place an order. The supplier currently orders 80 tires per month.Required:a. Calculate ordering, holding, and total inventory costs for thecurrent ordered…ABC INVENTORY CLASSIFICATION A company trades with a number of items and the management is interested in classifying the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.the items contained in the warehouse according to the order of importance, by the capital retained in the warehouse.The following is a list of the items the company deals with and their respective demand and cost.demand and cost. a) Perform an ABC classification considering that the company wishes to have control of 82% of the valorization.