A company stocks an item that is consumed at the rate of 35 units each day. Every time an order is placed for new supply, $ 105 must be paid. A unit inventory held in stock will cost $ 0.15. a) What is the economic order quantity (EOQ)? b) What is the cycle time for the EOQ? c) What is the total cost for the EOQ?
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A company stocks an item that is consumed at the rate of 35 units each day. Every time an order is placed for new supply, $ 105 must be paid. A unit inventory held in stock will cost $ 0.15.
a) What is the economic order quantity (EOQ)?
b) What is the cycle time for the EOQ?
c) What is the total cost for the EOQ?
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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.A company stocks an item that is consumed at the rate of 20 units each day. Every time an order is placed for new supply, $ 100 must be paid. A unit inventory held in stock will cost $ 0.15. (a) What is the economic order quantity (EOQ)? (b) What is the cycle time for the EOQ? (c) What is the total cost for the EOQ? (d) What is the total cost if the order quantity is 300 more than EOQ? (e) What is the optimum number of orders (rounded to the closest integer) that the company has to place each year? Assume that the company has a standing policy of not allowing shortages in demand.A company stocks an item that is consumed at the rate of 30 units each day. Every time an order is placed for new supply, $ 120 must be paid. A unit inventory held in stock for one week will cost $ 0.14. What is the economic order quantity (EOQ)? What is the cycle time for the EOQ? What is the total annual cost for the EOQ?
- DAT, Inc. produces digital audiotapes to be used in the consumer audio division. DAT lacks sufficient personnel in its inventory supply section to closely control each item stocked, so it has asked you to determine an ABC classification. Here is a sample from the inventory records: ITEM AVERAGEMONTHLY DEMAND PRICE PER UNIT 1 700 $ 6.00 2 200 4.00 3 2,000 12.00 4 1,100 20.00 5 4,000 21.00 6 100 10.00 7 3,000 2.00 8 2,500 1.00 9 500 10.00 10 1,000 2.00 Develop an ABC classification for these 10 items. Item Monthly Usage ($) Class 1 2 3 4 5 6 7 8 9 10Annually a company requires 45 units of one of its components that it distributes throughout the country and its inventory maintenance cost is 10% of the cost of the product. The cost of the product is 2000 per unit. The cost to order is $ 125,000. Based on the above data, determine: 1. The economic quantity of the order2. If 10 days have elapsed since placing the order. What is the reorder point if the safety inventory is 1500 units?3. Quantity of the order to be made?4. What is the total cost of inventory management?(a) What is the expected jet fuel yearly average demand D?(b) Given D, find the order lot size Q that gives the economic order quantity (EOQ).(c) Given the EOQ, what is the total inventory holding cost?(d) Given the EOQ, what is the total inventory ordering cost?(e) Given the EOQ, what is the total annual inventory cost?(f) What is the time between orders in weeks? The airport is convinced that placing an order every season (every P = 13weeks) will be best. It is also aware that the expected demand will varywith a standard deviation of 20 tons, so it needs to take this information into account. (g) What is the protection period required by the proposed 13-week periodic review system?(h) The airport is required by the airlines to maintain a 99.75% service level.What is the required safety stock?(i) Calculate the order size (Q) when using P = 13.(j) What is the total annual inventory cost for the P = 3 inventory system?(k) What is the target inventory level (T)? The airport has shopped…
- 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)The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of resin, what would be the average inventory level?Roybow Corporation sells lawn mowers that cost $160 each to purchase and prepare for sale. Annual sales are 5,000 mowers , carrying costs are 20 percent of inventory costs , and Roybow icurs a cost of $32 each time an order is placed. a) what is the EOQ for the mowers b) what will be the total inventory costs if the EOQ amount is ordered?
- Jordin Henry's machine shop uses 2,470 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand Holding cost per bracket per year Order cost per order Lead time Working days per year units (round your response to two decimal places). b)What is the average inventory if the EOQ is used? What would be the annual inventory holding cost? $ c) Given the EOQ, how many orders will be made annually? What would be the annual order cost? $ (round your response to two decimal places). 2,470 $1.65 $19.00 a) What is the EOQ? 2 days 250 units (round your response to two decimal places). (round your response to two decimal places). orders (round your response to two decimal places). d)Given the EOQ, what is the total annual cost of managing (ordering and holding) the inventory? $ response to two decimal places). e) What is the time between orders? days (round your response to two decimal…Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory carrying cost is equal to 25% of the purchase price. The lead time for placing the order is 1 week, an Inc. holds 4,800 litters of paint as safety stock. The company’s usage of inventory is at a constant rate. If the company orders 4,000 litters of paint per order, what is the cost of carrying inventory?Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The fo llowing information is known about the brackets: a) Given the information, what would be the economic order quantity (EOQ)?b) Given the EOQ, what would be the average inventory? What would be the annual inventory holding cost?c) Given the EOQ, how many orders would be made each year? What would be the annual order cost?d) Given the EOQ, what is the total annual cost of managing the inventory?e) What is the time between orders?f) What is the reorder point (ROP)?