Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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6. The ABC Logistic company buys in lots of 900 boxes for packaging which is yearly supply , the cost per box is OMR 10 and the ordering cost is OMR 4. The inventory cost is estimated 20 % of unit value .
all the 6 required to solve :
1. The EOQ .
2.No. of opers in a year
3.Time between two successive orders
4.Average yearly cost of Inventory
5.Total inventory cost
6.Total Cost
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- A museum of natural history is having problems managing their inventories. Low inventory turnover is squeezing profit margins and causing cash-flow problems. A Class A item, a birdfeeder is also a top-selling item. See information for this item in the table below. Management has been ordering in lots of 390 units. 1) What is the annual cost of the current policy (hint: find the current total cost with the current order size, Q)? 2) What is the Economic Order Quantity or the optimum order quantity (EOQ) for the birdfeeders? 3) What is the total annual cost of ordering at the EOQ? How much could be saved if the museum ordered at the EOQ opposed to their current order size of 390 units? 4) When should the museum place an order, at how many units (i.e.: what is their reorder point or lead time demand)? Sales per week (demand) Purchase cost Order cost Annual holding cost Birdfeeder: Operating weeks per year Lead time for orders (weeks) Order size EOQ (calculated) 18 $ $ 60.00 45.00 25% of…arrow_forward3 Which of the following inventory models considers backorder costs? O a. Economic Order Quantity with Quantity Discounts O b. Basic Economic Order Quantity C. Economic Order Quantity with Planned Shortages Od. Economic Production Quantityarrow_forwardCan someone please help me with the folowing problems on excel with the formulas. Thank youarrow_forward
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