20-31 EOQ, uncertainty, safety stock, reorder point. Phillips Corporation is a major manufacturer of food processors. It purchases motors from Viking Corporation. Annual demand is 52,000 motors per year or 1,000 motors per week. The ordering cost is $360 per order. The annual carrying cost is $6.50 per motor. It cur- rently takes 2 weeks to supply an order to the assembly plant. 1. What is the optimal number of motors that Phillips's managers should order according to the EOQ model? 2. At what point should managers reorder the motors, assuming that both demand and purchase-order lead time are known with certainty? 3. Now assume that demand can vary during the 2-week purchase-order lead time. The following table shows the probability distribution of various demand levels: Required Total Demand for Motors for 2 Weeks 1,600 1,800 2,000 2,200 Probability of Demand (sums to 1) 0.05 0.20 0.50 0.20 0.05 2,400 If Phillips runs out of stock, it would have to rush order the motors at an additional cost of $5 per mo- tor. How much safety stock should the assembly plant hold? How will this affect the reorder point and reorder quantity? download thousands

Subject management accoun Please help solve all.. please A company is planning to purchase 90,800 units of a particular item in the year ahead. The item is purchased in boxes each containing 10units of the item, at a price of $200 per box. A safety inventory of 250 boxes is kept. Besides, the company estimates to be charged the transporation cost of $15 per order. It should be assumed that ordering costs change in proportion to the number of orders place. The cost of holding an item in inventory for a year (including insurance, interest and space costs) is 15% of the purchase price. The cost of placing and receiving orders is to be estimated from cost data collected relating to similar orders, where costs of $5,910 were incurred on 30 orders. It should be assumed that ordering costs change in proportion to the number of orders placed. 2% should be added to the above ordering costs to allow for inflation. Assume that usage of the item will be even over the year. Required a. Calculate…

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C E H The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00 per unit. The ordering cost is $10.00 per order, and the annual holding cost is estimated at 15% of the unit value. 1. What is the EOQ for the ABC? 2. What is the total annual inventory cost for the mother board if it is ordered in economic quantities? 3. How many orders should be placed each year? D Demand 40000 units H Holding Cost S Ordering Cost 4.5 $/unit/yr 10 $/order Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Quantity Average Total Holding Cost Total Ordering Cost Total COST = 100 200 300 400 500 1000 2000