The GIIC -Company must determine a policy for ordering coal to operate 15 smelters. Each smelter requires exactly 5 tons of coal per day to operate, and the firm operates 360days per year. The purchasing manager has negotiated a contract to obtain the coal for 5 BD per ton for the coming year. The purchasing manager has determined that theordering cost is 40 BD per order, and the cost of holding coal is 20% per ton of its value.i. Determine the optimal quantity of coal to receive in each order.ii. Determine the total inventory-related costs associated with the optimal ordering policy (do not include the costii. If five days' lead time is required to receive an order of coal, how much coal should be on hand when aniv. Optimal quantity 1837.11 Tons, Total cost 1837.11 BD, Inventory during LT 275 Tonsof the coal).order is placed?i. Optimal quantity 1469.694 Tons, Total cost 1469.694 BD, Inventory during LT 375 Tonsii. Optimal quantity 734.85 Tons, Total cost 1649.694 BD, Inventory during LT 150 Tonsv. Optimal quantity 1649.694 Tons, Total cost 1837.11 BD, Inventory during LT 150 Tonsii. Optimal quantity 1649.694 Tons, Total cost 27000 BD, Inventory during LT 275 Tons

Given- Annual demand (D) = (5 tons×15 smelters×360 days) = 27,000 tons per year Ordering cost (S)…

Answered: The GIIC -Company must determine a…

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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The TransCanada Lumber Company and Mill processes 10,000 logs annually, operating 250 days per year. Imme-diately upon receiving an order, the logging company’s supplier begins delivery to the lumber mill at the rate of 60 logs per day. The lumber mill has determined that the or-dering cost is $1600 per order, and the cost of carrying logs in inventory before they are processed is $15 per log on anannual basis. Determine the following:a. The optimal order sizeb. The total inventory cost associated with the optimalorder quantityc. The number of operating days between ordersd. The number of operating days required to receive anorder
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Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. d) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (99% service level)? e) If the carrying cost per year is $0.50/unit/year - what is the additional cost associate with the 99% service level compared to 95% service level (i.e. cost of safety stock at 99% level - cost of safety stock at 95% service level)? solve on excel
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