4 Holding parts in dynamicindustries ____Select one:a. is best because the parts do notdepreciate in value b. does notjust increase holding cost but hasto be written off c. causes manycompanies to incur increasedprofits d. does not make anydifference to the industry

Here, it is an MCQ question, I would select the most appropriate answer, The detailed solutions are…

Answered: Holding parts in dynamic industries…

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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Holding stock of required quantity by avoiding ____________ and ___________. a. Planning and control b. Overstocking and stock outs c. Deterioration and obsolescence d. Timeliness and reliability
Given Information Service Level - 95% (z value= 1.6649) Order Cost - $125Order Cycle (weeks) - 4, 5, 6, 7, 8Lead Time (weeks) - 2 weeksOperating Time - 52 weeks Standard deviation = 69.3237 Variable Holding Cost - 12.019% Fixed Holding Cost - 1,659,317.307 COMPUTE FOR ECONOMIC ORDER QUANTITY (EOQ) PER ORDER CYCLE. THANK YOUUUUU
EE Co has calculated the following in relation to its inventories.Buffer inventory level 60 unitsReorder size 250 itemsFixed order costs $40 per orderCost of holding onto one item pa $1.5 per yearAnnual demand 10,000 itemsPurchase price $2 per itemWhat is the total inventory related costs for a year (to the nearest whole $)?
[item no.12] Which of the following formulas is correct about the production run model? a. Total produced during production run = dt b. Total used during production run = pt c. Annual holding cost = QCh(1-p/d)/2 d. Maxium inventory level = Q(1-d/p)
Edwarldo’s Manufacturing uses 2,400 units of a product per year on a continuous basis. The product Carrying Cost are $60 per year and Ordering Cost are $250. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. Show Computations and Explanations. A. Calculate the Economic Order Quantity (round up the answer to the nearest whole unit) (Format: 111) B. Calculate the Total Cost per year to order and carry this item. (Format: 1,111) C. Their supplier has notified the company that if they increase their order quantity by 58 units, they will give the company a discount. Calculate the Dollar Discount that the company will have to at least give to Edwarldo’s Manufacturing to be indifferent. (Format: 111)
Leaky Pipe, a local retailer of plumbing supplies, faces de-mand for one of its SKUs at a constant rate of 30,000 unitsper year. It costs Leaky Pipe $10 to process an order toreplenish stock and $1 per unit per year to carry the itemin stock. Stock is received 4 working days after an order isplaced. No backordering is allowed. Assume 300 workingdays a year.a. What is Leaky Pipe’s optimal order quantity?b. What is the optimal number of orders per year?c. What is the optimal interval (in working days) betweenorders?d. What is the demand during the lead time?e. What is the reorder point?f. What is the inventory position immediately after an orderhas been placed?
In inventory management, high holding costs calls for high inventory levels. A.True B.False
Kendi Company uses 800 units of a product per year on a continuous basis. The product has a Fixed Cost of $50 per order, and its carrying cost is $2 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days’ usage in inventory as a safety stock. Show Computations and Explanations. A. Calculate the EOQ. B. Determine the Average Level of Inventory. (Note: Use a 365-day year to calculate daily usage.) (Format: 111.11) C. Determine the Reorder Point. (Format: 11.11)
Inventory order is placed when O a. Only when projected or actual stocks on hand is below zero O b. None of these O c. Only when projected or actual on hand stocks are higher than the safety stock. O d. Only when projected or actual on hand stocks value is positive.
The Vendor MI is a special concept of restocking and replenishing the inventory that originated in retail business, the line of business where stock availability is a significant if not a crucial factor of company´s success. With VMI, the vendor takes responsibility for inventory management at the buyer side. Select one: a. False b. True
NEED ALL THREE QUESTIONS Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $9 per unit of average inventory. Every time an order is placed for more item X, it costs $6. a. Whenever item X is ordered, what should the order size be? (Round your answer to the nearest whole number.) b. What is the annual cost for ordering item X? (Round your answer to 2 decimal places.) c. What is the annual cost for storing item X? (Round your answer to 2 decimal places.)
Scouts Corp. projects its sales to be 1,000 units this year. As a result of holding inventories, insurance, storage, taxes and other cost are incurred amounted to P2 per unit per year. Every time Scouts Corp. makes an order, P10 is incurred. On the average it takes 3 days to make and receive an order. (Use 360 days a year). Assuming Scouts Corp.’s inventory may take as 5 days to respond, how many units of inventory is the average daily usage? and what is the normal lead time usage?

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Holding parts in dynamic industries ____ Select one: a. is best because the parts do not depreciate in value b. does not just increase holding cost but has to be written off c. causes many companies to incur increased profits d. does not make any difference to the industry