1) To order less than 2,000 the vendor quotes $1.80 per piece. Orders between 2001 to 5,000 are$1.60 per piece and 5,001-10,000 it's $1.40. Any orders above 10,000 the price drops to $1.25.Ordering costs are $200 per order and to store the materials we have a 5% storage costs from UCcatering. Our estimated annual demand is 15,000 pieces.If we contract to place orders annually with the vendor for 10,001 pieces each time to get the S1.25price, what is my total cost for the year?2) To order less than 2,000 the vendor quotes $1.80 per piece. Orders between 2001 to 5,000 areS1.60 per piece and 5,001-10,000 it's S1.40. Any orders above 10,000 the price drops to $1.25.Ordering costs are $200 per order and to store the materials we have a 5% storage costs from UCcatering. Our estimated annual demand is 15,000 pieces.What is the optimal Order Qty ?

1. Given, Annual demand, d= 15000 pieces Ordering cost, o =$200 Inventory holding cost…

1) To order less than 2,000 the vendor quotes S1.80 per piece. Orders between 2001 to 5,000 are $1.60 per piece and 5,001-10,000 it's $1.40. Any orders above 10,000 the price drops to $1.25. Ordering costs are $200 per order and to store the materials we have a 5% storage costs from UC catering. Our estimated annual demand is 15,000 pieces. If we contract to place orders annually with the vendor for 10,001 pieces each time to get the $1.25 price, what is my total cost for the year? 2) To order less than 2,000 the vendor quotes S1.80 per piece. Orders between 2001 to 5,000 are $1.60 per piece and 5,001-10,000 it's $1.40. Any orders above 10,000 the price drops to $1.25. Ordering costs are $200 per order and to store the materials we have a 5% storage costs from UC catering. Our estimated annual demand is 15,000 pieces. What is the optimal Order Qty ?

1) To order less than 2,000 the vendor quotes S1.80 per piece. Orders between 2001 to 5,000 are $1.60 per piece and 5,001-10,000 it's $1.40. Any orders above 10,000 the price drops to $1.25. Ordering costs are $200 per order and to store the materials we have a 5% storage costs from UC catering. Our estimated annual demand is 15,000 pieces. If we contract to place orders annually with the vendor for 10,001 pieces each time to get the $1.25 price, what is my total cost for the year? 2) To order less than 2,000 the vendor quotes S1.80 per piece. Orders between 2001 to 5,000 are $1.60 per piece and 5,001-10,000 it's $1.40. Any orders above 10,000 the price drops to $1.25. Ordering costs are $200 per order and to store the materials we have a 5% storage costs from UC catering. Our estimated annual demand is 15,000 pieces. What is the optimal Order Qty ?

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.
Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.
Item X is a typical object stored in a company's replacement parts warehouse. Per year, the company uses about 2,000 Item X items, and costs Php 1,000 per product. Both premiums and capital charges, storage costs contribute to 18 percent of item unit costs. It costs Php 400 to place an order for more of Item X. It runs 360 days a year and Item X is sent 9 days after order placing. How much Item X units can each be ordered? A. 94 parts. B. 95 parts C. 100 parts D. 2 thousand units
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?
Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How many units of Item X should be ordered each time? When should Item X be ordered? How much would be Item X's total annual purchasing cost? How much would be Item X's total annual procurement cost? Including its total annual purchasing cost, how much would be Item X's total annual inventory cost? What is Item X's average inventory level? How much would be Item X's total annual storage cost? How much would be Item X's total annual stockout cost? How many times per year would Item X be ordered?
Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How much would be Item X's total annual stockout cost? A. None of the above B. Zero C. Php 8,485 D. Php 16,971
Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How much would be Item X's total annual storage cost? A. Php 2,000,000 B. None of the above C. Php 8,485 D. Php 16,971 How much would be Item X's total annual stockout cost? A. None of the above B. Zero C. Php 8,485 D. Php 16,971
Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How much would be Item X's total annual procurement cost? * Php 16,971 Php 2,000,000 None of the above Php 8,485 How much would be Item X's total annual storage cost? * Php 8,485 Php 16,971 Php 2,000,000 None of the above How much would be Item X's total annual stockout cost? * Php 16,971 Zero None of the above Php 8,485
Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. a. How much would be Item X's total annual storage cost? Php 8,485 Php 16,971 Php 2,000,000 None of the above b. How much would be Item X's total annual stockout cost? Zero Php 8,485 Php 16,971 None of the above c. Including its total annual purchasing cost, how much would be Item X's total annual inventory cost? Php 2,008,485 Php 2,000,000 Php 2,016,971 None of the above Please ANSWER ALL THE QUESTIONS above to avoid being rated as unhelpful. Thank you!
You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.25 a copy. You sell a copy of the San Pedro Times for $1.00. Daily demand is distributed normally with mean = 250 and standard deviation = 50. At the end of each morning, any leftover copies are worthless and they go to a recycle bin.a. How many copies of the San Pedro Times should you buy each morning?b. Based on part (a), what is the probability that you will run out of stock?
Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.
In ABC inventory analysis, which of the following is FALSE for class A items? Select one: a. Class A items together make up a higher percentage of total inventory value ($) than either class B or class C items. b. Tighter control of class A items (than for class B or class C items) is appropriate. c. It is advisable to manage Class A items using an automated computer system. d. Class A items together make up smaller percentage of inventory items than class C items. e. Class A items individually may have any value ($): small, medium or high.