a) ABC Plantation uses an average of 50 bags of fertilizer a day. ABC Plantation operates260 days per year. Storage and handling costs for the fertilizer are RM40 a year per bag.It costs RM70 to order and receive the shipment of fertilizer.i.ii.Compute the economic order quantity (EOQ)Calculate the total annual costiii. Compute the optimal number of order per yeariv.Calculate the optimal number of days between any two orders

Economic Order Quantity It's critical for every company that purchases and maintains inventory to…

a) ABC Plantation uses an average of 50 bags of fertilizer a day. ABC Plantation operates 260 days per year. Storage and handling costs for the fertilizer are RM40 a year per bag. It costs RM70 to order and receive the shipment of fertilizer. Compute the economic order quantity (EOQ) Calculate the total annual cost ii. iii. Compute the optimal number of order per year iv. Calculate the optimal number of days between any two orders i.

a) ABC Plantation uses an average of 50 bags of fertilizer a day. ABC Plantation operates 260 days per year. Storage and handling costs for the fertilizer are RM40 a year per bag. It costs RM70 to order and receive the shipment of fertilizer. Compute the economic order quantity (EOQ) Calculate the total annual cost ii. iii. Compute the optimal number of order per year iv. Calculate the optimal number of days between any two orders i.

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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Problem: 4 ABC Ltd uses EOQ to determine the order quantity for its various components and is planning its orders. The Annual Consumption is 80,000 units. Cost to place one order is RO 1200. Cost per unit is RO 50 and carrying cost is 6% of unit cost. Find A) EOQ B) Number of orders per year C) Ordering cost D) Carrying cost and E) The total cost of inventory
Barangay Punta Princesa is trying to decide between two alternative order plans for its inventory of face masks. Irrespective of the plan to be followed, demand for the item is expected to be 1,000 units annually. Under Plan A, Barangay Punta Princesa through their purchasing officer is using a digital platform for ordering: order costs would be Php 40 per order. Inventory holding costs (carrying costs) would be Php 100 per unit per annum. Under Plan B order costs would be Php 30 per order. And holding costs would 20% and unit cost is Php 480. Find out EOQ and Total Inventory cost, then come up with your decision which plan would result in the lowest total inventory cost? can you answer this asap?
Supply Chain Coordination problem Zamatia makes sunglass at a cost of $35 and sells them to UmbraVisage (UV) for $75. UV sells them for $115 and salvages left over inventory for $25 per unit. Demand is Normal with mean 250 and standard deviation 125. a. What should be the optimal ordering quantity for UV? b. What is the total supply chain profit (UV & Zamatia) given the ordering quantity computed in a? c. What should be the optimal ordering quantity to maximize the total supply chain profit (UV and Zamatia)?
Barangay Punta Princesa is trying to decide between two alternative order plans for its inventory of face masks. Irrespective of the plan to be followed, demand for the item is expected to be 1,000 units annually. Under Plan A, Barangay Punta Princesa through their purchasing officer is using a digital platform for ordering: order costs would be Php 40 per order. Inventory holding costs (carrying costs) would be Php 100 per unit per annum. Under Plan B order costs would be Php 30 per order. And holding costs would 20% and unit cost is Php 480. Find out EOQ and Total Inventory cost, then come up with your decision which plan would result in the lowest total inventory cost?
Over t he past 5 weeks, dema nd for wine atWinston's Winery has averaged 1,890 bottles, and the varianceof demand has been 793,000 bottles. Winston has ordered anaverage of l ,900 bottles per week over that time period, with avariance of orders of I ,805,000 bottles.a) What is the bullwhip measure for glass bottles for Winston's Winery?b) Is Winston's Winery providing an amplify ing or smoothing effect?
NCY Corp has an annual usage ( of 5,000 units. The ordering cost is RM 200 per order while the carrying cost is RM 2 per unit. The company holds 17 units as safety stocks . It takes 7 days for the shipment to arrive. You are required to calculate EOQ, ROP, TOC and TCC of the company. ( Assume the working days is 360 days).
Define Vendor Managed Inventory and the ABC system.
Epworth Co. predicts that it will use 360,000 gallons of material during the year. It anticipates that it will cost $72 to place each order. The annual carrying cost is $4 per gallon. a. Determine the most economical order quantity by using the EOQ formula. b. Determine the annual order and carrying costs at the EOQ point.
please Solve question G,H AND I Question A to F IS SOLVED (a) What is the expected jet fuel yearly average demand D? =4160 tons(b) Given D, find the order lot size Q that gives the economic order quantity (EOQ). =60.39 unit(c) Given the EOQ, what is the total inventory holding cost?= $1067695.2(d) Given the EOQ, what is the total inventory ordering cost? =OC=$1067726.4(e) Given the EOQ, what is the total annual inventory cost?TIC=2135421.6 =1.32(f) What is the time between orders in weeks? = 39.39 The airport is convinced that placing an order every season (every P = 13weeks) will be best. It is also aware that the expected demand will varywith a standard deviation of 20 tons, so it needs to take this information into account. (g) What is the protection period required by the proposed 13-week periodic review system?(h) The airport is required by the airlines to maintain a 99.75% service level.What is the required safety stock?(i) Calculate the order size (Q) when using P = 13.(j)…
Description: Asfand Pvt Ltd. is working as a distributor for a renowned tire company in Punjab. Next year, the company expects to sell 19,200 steel-belted radial tires of a certain size and tread design. The annual carrying cost is Rs 1600 per tire, and the ordering cost is Rs 7500. Questions: Based on the above information, you are required to calculate the following: A. What is EOQ? B. How many times a year the store needs to re-order. C. What is the total annual cost if an EOQ quantity is ordered?
A restaurant serves an average of 623 desert (leche flan) servings every week. The manager places an order of 1,000 servings every time she calls the supplier. Record shows that ordering cost per order is PhP30, and the holding cost per serving per year is PhP5.00. a. What is the current annual inventory costs incurred by the restaurant. b. If EOQ is used, what will be the inventory cost incurred by the restaurant each year? c. What order quantity would you recommend for the restaurant? Why?
A restaurant serves an average of 623 desert (leche flan) servings every week. The manager places an order of 1,000 servings every time she calls the supplier. Record shows that ordering cost per order is PhP30, and the holding cost per serving per year is PhP5.00. a. What is the current annual inventory costs incurred by the restaurant.b. If EOQ is used, what will be the inventory cost incurred by the restaurant each year?c. What order quantity would you recommend for the restaurant? Why?