Riex Blocks – “Hastang gahi a” specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a semi-annual order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 7% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 145 per order per year. What is the economic order quantity? and how many orders should be made each year?

Riex Blocks – “Hastang gahi a” specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a semi-annual order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 7% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 145 per order per year. What is the economic order quantity? and how many orders should be made each year?

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.
Legu Bloxs – specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a yearly order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 5% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 150 per order per year. What is the Total Inventory Cost?
Riex Blocks – “Hastang gahi a” specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a semi-annual order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 7% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 145 per order per year. *SHOW SOLUTIONSa.) What is the economic order quantity? (choose from the choices) -282 -200 -75 -52 -35 b.) How many orders should be made each year? (choose from the choices)- 9 -12 -13 -17 -64
Legu Bloxs – specialized in the manufacturing of high-rise CHB (concrete hollow blocks). The company makes a yearly order for 2,400 sacks of cement at a unit price of 250.00. Its carrying cost per year is estimated at 5% of the price of concrete block. While the cost of preparing a requisition, a purchase order and receiving tickets, stocking the items when they arrive m processing the supplier’s invoice and remitting the payment to the supplier is 150 per order per year. What is the economic order quantity? What is the Total Inventory Cost? How many orders should be made each year?
Earthbound Corporation is a manufacturer and distributor of air conditioning systems. You have been engaged to install an accounting system for Earthbound period among the inventory control features earthbound desires as part of the system are indicators of how much to order and when period. The following information is furnished for a product called “Hydronix” which is carried in inventory: Hydronix are sold by the gross (12 dozen) at a list price of P800 per gross FOB shipper. John receives a 40% trade discount off list price on purchases in gross lots. Freight cost is P20 gross from the shipping point to John's plant John uses about 5,000 Hydronix during 259-day production year and must purchase a total of 36 gross per year to allow for normal breakage. Minimum and maximum usages are 12 and 28, respectively. It takes 20 working days (normal delivery time) to receive an order from the date the purchase request is initiated. A rush order in full gross lots can be received by air…
Please solve all questions in 30min please Alimin Sdn. Bhd’s plant experiences a daily demand of 100 units of component B that is purchased from a supplier at RM25 per unit. The plants operate 360 days per year. The plant has been using continues review policy for replenishment of the component, with an order size of 400 units. The cost of placing including delivery is RM20 and the annual holding cost per unit is RM4. In order to minimize total annual inventory cost, the company is now considering to use economic order quantity (EOQ) model. Required: a. Calculate total annual inventory cost of component B by using the current policy. b. Calculate the order size by using EOQ formula. c. Calculate total annual inventory cost that the company can save if it uses EOQ. d. Assuming the lead time is 3 days, compute re-order point of component B. Note: Total annual inventory cost = Ordering costs + Holding Costs
Maroons Medical Supplies, Inc. must order masks from its supplier in lots of 1 dozen boxes. Given the information provided below, complete the following table: Annual demand 26,000 dozen Cost per order placed P30 Carrying cost 20% Price per dozen P7.80 Order Size (Dozen) 250 500 1,000 2,000 13,000 26,000 Number of orders Average inventory Carrying cost Order cost Total cost 1. What is the EOQ? Thank you so much!
First Printing has contracts with legal firms in San Francisco to copy their court documents. Daily demand is almost constant at 12,500 pages of documents. The lead time for paper delivery is normally distributed with a mean of 4 days and a standard deviation of 1 day. A 97% service level is expected. Compute First’s ROP.
Franz Beckenbauer and Johan Cruyff are purchasing managers for the headquarters of a largesports marketing company chain with a central inventory operation. Their fastest-moving inventory item hasa daily demand of 35 units. The cost of each unit is £200, and the inventory carrying cost is £25 per unitper year. The average ordering cost is £60 per order. It takes about 5 days for an order to arrive, and thereare 252 working days per year. a) To minimize the cost, how many units should be ordered each time an order is placed?What is the total annual inventory cost, including the cost of the units? b) How can they manage the days it takes for an order to arrive? (How does it impact theiroperations and costs?) c) b) Even if there is substantial uncertainty in the parameters in the EOQ-model, it is still quite auseful model. Discuss why. I got this anwsers but i am not sure if its correct: For question 1: EOQ=294 Annual Holding Cost= Q/2 H= 2942×25=£3675 Annual Ordering Cost=Q/D S=…
Franz Beckenbauer and Johan Cruyff are purchasing managers for the headquarters of a largesports marketing company chain with a central inventory operation. Their fastest-moving inventory item hasa daily demand of 35 units. The cost of each unit is £200, and the inventory carrying cost is £25 per unitper year. The average ordering cost is £60 per order. It takes about 5 days for an order to arrive, and thereare 252 working days per year. a) To minimize the cost, how many units should be ordered each time an order is placed?What is the total annual inventory cost, including the cost of the units?b) How can they manage the days it takes for an order to arrive? (How does it impact theiroperations and costs?)c) b) Even if there is substantial uncertainty in the parameters in the EOQ-model, it is still quite auseful model. Discuss why.
Maroons Medical Supplies, Inc. must order masks from its supplier in lots of 1 dozen boxes. Given the information provided below, complete the following table: Annual demand 26,000 dozen Cost per order placed P30 Carrying cost 20% Price per dozen P7.80 Order Size (Dozen) 250 500 1,000 2,000 13,000 26,000 Number of orders Average inventory Carrying cost Order cost Total cost 1. What is the EOQ? Please include/fill the table and solve for EOQ. Thank you so much!
Michaela Bag, engaged in reselling school bags is having problems when it comes to managing its inventory quantities. Most of the time, Michaela Bag would run out of bags because she would order too few quantities. Their annual requirement, as forecasted by its proprietress, is 24,000 bags. The costs associated with carrying every unit of school bag would be ₱7. It is estimated that each order from her supplier will cost ₱300. Compute for Michaela Bag economic order quantity.