2. (SCM) Paris bakery requires, on average, 1,800 tons of flour each week, with a standard deviation of 500 tons. The lead time to receive its orders is 3 weeks. The holding cost for one ton of flour for one week is $8. It operates with a 97.98% in-stock probability. What would be its average holding cost per ton? (
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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.Anvils Works’ requires, on average, 2800 tons of aluminum each week, with a standarddeviation of 1000 tons. The lead time to receive its orders is 10 weeks. The holdingcost for one ton of aluminum for one week is $11. It operates with a 0.98 in-stockprobability.a. On average, how many tons does it have on order?b. On average, how many tons does it have on hand?c. If its average inventory was 5000 tons, what would be its average holding cost perweek?d. If its average inventory was 10,000 tons, what would be its average holding cost perton of aluminum?e. Suppose its on-hand inventory is 4975 tons, on average. What in-stock probabilitydoes it offer to its customers?)Haulsee Inc. builds 800,000 golf carts a year and purchases the electronic motors for these carts for $370 each. Ordering costs are $540, and Haulsee's inventory carrying costs average 14% of the inventory value. What is the EOQ for Haulsee? d) Alpha Products maintains a capital structure of 40% debt and 60% common equity. To finance its capital budget for next year, the firm will sell $50 million of 11% debentures at par and finance the balance of its $125 million capital budget with retained earnings. Next year Alpha expects net income to grow 7% to $140
- What is the relationship between the average inventory and the in-stock probability?a. The more the inventory, the lower the in-stock probability.b. There isn’t a definitive relationship—more inventory could mean a lower or a higherin-stock probability.c. The more the inventory, the higher the in-stock probability.Metal Gear solid Company needs 2679 metal desks per year. Fixed delivery charges and costs of receiving is about $4000 per shipment. Every desk costs $800. The firm uses a 18.25% interest rate. a. Find the annual demand. 1 b. Find the total holding cost c. Find the EOQ. с.ons Management Fall20 Al Khaleej Inc. needs 325 kgs of a material per month. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 15% of purchase price. The price RO 3 per kg. The company is operating 6 days per week. What is the best annual total holding and ordering cost in RO? Round- up to the nearest integer Select one: a. 484 Ob. None is correct C. 625 d. 593 O e. 502 Next pag
- Academic) s Management Fall20 Al Khaleej Inc. needs 440 kgs of a material per month. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. What is the expected time (in weeks) between order? Round-up to the nearest integer Select one: O a. 185 O b. None is correct O c. 105 O d. 111 O e, 207At theEOQ, what is the firm’s total inventory costper year, assuming safety stock = 15 units?Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that Palmer can order the ink at a cost of $2 per gallon plus fixed ordering costs of $125 per order. The firm’s carrying cost is 20 percent of the inventory value, at cost. How much is the holding cost? * How many number of orders are there in a year? *
- 4. Westside Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Westside's generator production operation, which is operated at a constant rate, will require 1000 components per month throughout the year (12,000 units annually). Assume that the ordering costs are $25 per order, the unit cost is $2.50 per com- ponent, and annual holding costs are 20% of the value of the inventory. Westside has 250 working days per year and a lead time of 5 days. Answer the following inventory policy questions: a. What is the EOQ for this component? b. What is the reorder point? C. What is the cycle time? d. What are the total annual holding and ordering costs associated with your recom- mended EOQ? 5. Suppose that Westside's management in Problem 4 likes the operational efficiency of or- dering once each month and in quantities of 1000 units. How much more expensive would this policy be than your EOQ recommendation? Would you recommend in favor of the…Antique manufactures old-fashioned telephones for use in movie scenes (and other displays). Antique's annual demand for rotary telephones is 33,000 units per year, so it needs just as many receptors to assemble the phones. Receptors are ordered from a supplier, and shipping and handling costs are $15 per order (regardless of how many units are on order). The holding costs are $7/unit/year. If the current company policy calls for orders of 3,000 receptors, what are the total annual inventory costs for the receptors? round your final answer to the nearest whole dollar.Suds’s Bottling Company does bottling, labeling, and distri-bution work for several local microbreweries. The demandrate for Wortman’s beer is 600 cases (24 bottles each) perweek. Suds’s bottling production rate is 2,400 cases per week,and the setup cost is $800. The value of inventory is $12.50per case, and the annual holding cost is 30 percent of theinventory value. Suds’s facilities operate 52 weeks each year.What is the economic production lot size?