Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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- 10.4 A company wishes to establish an EOQ for an item for which the annual demand is $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%. Calculate the following: a. The EOQ in dollars. b. Number of orders per year. c. Cost of ordering, cost of carrying inventory, and total cost. d. Compare your answers to those in problem 10.3.arrow_forwardPlease do not give solution in image format thanku What are order cycle costs if annual demand is 8,000 units, with the following order quantities and annual order cost is $97? a. Order quantity of 1,000 = b. Order quantity of 500 = C. Order qty of 8,000 =arrow_forwardPeriod 1 2 3 4 5 6 Demand 43 11 20 30 50 26 ordering cost 100 120 100 100 100 120 inventory cost 5 10 5 10 5 13 product cost 10 2 7.5 10 10 5 According to the W-W algorithm, what is the order quantity for the period two?arrow_forward
- here its the right answered please just provide me an explanation of how did you get this number with an calculation(24, 33, 33, 18, 10)arrow_forward5. A product whose EOQ is 120 units experiences a decrease in ordering cost from $90 per order to $10 per order. The revised EOQ is: Select one: a. 900 b. 40 c. 360 d. 30 e. 10arrow_forwardPlease do not give solution in image format thankuarrow_forward
- Using the gross requirements schedule below*, prepare an alternative ordering system that always orders 100 units the week prior to a shortage (a fixed order quantity of 100). What is the cost of this ordering system? D Period 1 2 3 Gross requirements 35 30 40 4 5 6 7 8 9 10 0 10 40 30 0 30 55 *Holding cost = $1/unit/week; setup cost = $100; lead time = 1 week; beginning inventory = 35 units. Prepare a net requirements plan (enter your responses as whole numbers). The holding cost of this ordering system is $ The setup cost of this ordering system is $ The total cost of this ordering system is $ Period Gross requirements On-hand at beginning of period 35 On-hand at end of period Net requirements Order receipt Order release (enter your response as a whole number). (enter your response as a whole number). (enter your response as a whole number). 1 35 2 3 30 40 4 0 7 8 9 10 0 30 55 5 6 10 40 30arrow_forwardDevelop a lot-for-lot solution and calculate total relevant costs for the gross requirements in the following table*. 5 6 7 30 70 30 9 10 11 12 60 10 70 Period 1 Gross requirements 20 2 Period Gross requirements On-hand at beginning of period 40 On-hand at end of period Order receipt Order release 3 40 1 20 4 *Holding cost = $3.50/unit/week; setup cost = $200; lead time = 1 week; beginning inventory = 40. Develop a lot-for-lot solution (enter your responses as whole numbers). 2 3 40 4 8 5 6 30 7 70 30 8 9 10 11 12 10 70 60 cornarrow_forwardIf economic order quantity is 2,500 units and consumption in units for one year are 15,000 units, then number of orders in a year will be: a. 10 orders b. 5 orders c. 12 orders d. 6 ordersarrow_forward
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