Use the following information to answer the question below:•Economic Order Quantity• Min. and Max. lead time4,500 units4-6 days• Consumption per day• Max. level350 - 470 units3 times the reorder levelThe maximum level is:Select one:O a. 4,650 unitsO b. 3,600 unitsOc. 1,200 unitsO d. 1,550 units

Maximum Stock Level: It is the highest level of quantity for any material which can be held in…

Answered: Use the following information to answer…

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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Similar questions

Explain the concept of setup or ordering costs and its relevance to EOQ.
Note: EOQ means Economic Order Quantity
Firm Tezla produces the product QuickCar. Annual demand for QuickCar is 600 units per year on a continuous basis. The product has inventory holding costs of $30 per unit per year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed. Calculate the economic order quantity (EOQ). a. 77 units b. 110 units c. 60 units d. 44 units
Q1/ Alpha Company estimates its product cost at 8000 $, the estimated annual requirement is 25000 units at holding cost 15% of product cost. a. What is the most economical number of units to order?(EOQ). b. How many orders should be placed in a year?(optimal number of orders).
Daily demand (d) 150 units Mean lead time (LT) 9 days Standard deviation of lead time (σLT) 3 days Service level 97% 1. What is the required safety stock at a 97 percent service level? ______ units 2. What is the reorder point? ______ units
Question 40 1 pt= The cost of a widget is $5, and the carrying rate is 40%; cost of processing an order is $25, annual demand is for 400 widgets. and supply and usage patterns are stable. Assuming you ordered at the lot size of 200 units per order (not the EOQ quantity). What is the annual ordering cost? $10 $50 O$20 O$25 Cannot be determined based on the given information. Question 41 Which of the following is not an assumption of the economic order quantity model?
Average daily demand (d) 80 units Standard deviation of daily demand (σd) 24 units Average lead time (LT) 6 days Standard deviation of lead time (σLT) 2 days Service level 91% 1. What is the required safety stock at a 91 percent service level? _______ units 2. What is the reorder point? _______ units
1. William Beville's, computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S = 19,500 units/year = $25/order Holding cost H = $4/unit/year a) What are the annual holding costs for the workbooks?
QUESTION 5 Increasing the order quantity above the EOQ decreases the annual ordering cost. True False Increasing the order quantity above the EOQ decreases the annual holding cost. True False
47) Waleed Pharmacy, Oman applies the basic EOQ model, if the demand is 6,000 units per year, ordering cost OMR 60, carrying cost OMR 2 per unit, approximately what is the Economic Order Quantity? a. 490 units b. 1000 units c. 520 units d. 600 units
L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item Code L. Houts Plastics Charlotte Inventory Levels Avg. Value Inventory (units) ($/unit) Dollar Volume % of Dollar Volume 1289 360 3.75 2347 300 4.00 1,200 37.58 2349 120 2.50 300 9.40 2363 60 1.50 2394 60 1.75 105 3.29 2395 30 1.75 6782 20 1.15 23 0.72 7844 12 2.05 25 0.77 8210 8 2.00 8310 7 2.00 14 9111 6 3.00 18 0.44 0.56 3,193 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics). Based on the percentages of dollar volume, item number 1289 should be…
L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item Code L. Houts Plastics Charlotte Inventory Levels Avg. Value Inventory (units) ($/unit) Dollar Volume % of Dollar Volume 1289 420 3.50 1470 2347 300 4.00 1,200 36.05 2349 120 2.50 300 9.01 2363 65 1.50 98 2394 60 1.75 105 3.15 2395 25 2.25 56 6782 7844 12 8210 10 8310 9111 22076 1.15 23 0.69 2.05 25 0.74 2.00 20 2.00 14 0.42 3.00 18 0.54 3,328

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