A shop owner uses a reorder point approach to restocking a certain raw material. Lead time is six days. Usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard
Q: Chocolate Company is interested in cutting the amount of time between when a customer places an…
A: Formula: Throughput time = Inspection time + process time + queue time + move time.
Q: Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 uni per…
A: Solution 1- EOQ =2×A×O/C A= ANNUAL CONSUMPTION O= ORDERING COST C=CARRYING COST/STORAGE COST…
Q: Auto Zone purchases replacement brake fluid reservoirs directly from the manufacturer. Demand is…
A: A) EOQ=2Demand Cost × Ordering CostHolding Cost=21,000×$10×$2520%=2$250,00020% = 447 units…
Q: The Western Pennsylvania Milk Company is producing milk at a fixed rate of 5,000 gallons/hour. The…
A: Hi, since you have requested the solution for question 4 only, we are providing solution for that…
Q: For the past few months, Sunshine Painting Sdn Bhd has been evaluating two alternatives; the…
A:
Q: A manufacturer occasionally needs a component in the manufacture of certain products. Its cost per…
A: 1. Economical quantity method to order = 2*annual demand*ordering cost/carrying cost 2. Fixed…
Q: Stocks of cement on a construction site are allowed to run down to a level of 3 tonnes before being…
A: The economic order quantity is the optimal order quantity that minimizes the total cost related to…
Q: A cement kiln with production capacity of 200 tons per day (24 hours) of clinker has at its burning…
A: Answer - Given, Particular Local Bricks Imported bricks Cost P30,000 P25,000 Life 5…
Q: Thomas' Bike Shop stocks a high-volume item that has a normally distributed demand during lead time.…
A: Information given in question Average daily demand (d) = 100 units Lead time (L) = 4 days standard…
Q: EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units…
A:
Q: the total costs if the manufacturer decides to use: The economical quantity method
A: Given, Demand= 0+40+20+100+20+0+20+80= 280 Ordering cost= $125 Carrying cost= $1.65 per week…
Q: Vista Electronics, Inc., manufactures two different types of coils used in electric motors. In the…
A: 1. Production Budget CALCULATION PARTICULAR LIGHT COIL HEAVY COIL A Sale Unit…
Q: Suppose a quality manager is to make a decision between two manufacturing processes for the…
A: The expected cost is the cost that a manufacturer is expected to spend on producing a single unit of…
Q: Vista Electronics, Inc., manufactures two different types of coils used in electric motors. In the…
A: Budgeting seems to be the procedure of forecasting income and spending over a set span of the period…
Q: Management of Mittel Company would like to reduce the amount of time between when a customer places…
A: 1) Throughput time= Process time+Inspection time+Move time+Queue time =3.2 +0.3+0.7+4.0 =8.2 days…
Q: A cement kiln with production capacity of 1200 tons per day (24 hours) of clinker has at its burning…
A: The company will run its operation to earn profits from the operations. The primary objective of any…
Q: Stocks of cement on a construction site are allowed to run down to a level of 3 tonnesbefore being…
A: The best order amount for a firm to acquire in order to reduce inventory expenses such as holding…
Q: A component used in a manufacturing facility is ordered from an outside supplier. Because the…
A: a.
Q: A process control manager is considering two robots to improve materials-handling capacity in the…
A: Robot X : First Cost = $ 74000 Annual M&O Cost = $ 31,000 Salvage Value = $ 35,000 Revenue…
Q: Machine Operator, manufacturer of shelving keeps stock of a wide range of components. The…
A: Solution Formulas 1- minimum stock level = Reorder level -(Average rate of consumption * Average…
Q: Management of Mittel Company would like to reduce the amount of time between when a customer places…
A: Throughput Time = Process time + Inspection Time + Move Time + Queue TimeValue Added Time = Process…
Q: A local canning company sells canned vegetables to a supermarket chain in the Minneapolis area. A…
A: a. Minimum constant workforce is based on the total demand, opening and closing inventory and rate…
Q: A firm purchased raw materials on account and paid for them within 30 days. The raw materials were…
A: 1) Cash Conversion Cycle - It measures the time taken i.e,. no. of days by a company to convert its…
Q: A process control manager is considering two robots to improve materials-handling capacity in the…
A: Given data: A process control manager is considering two robots to improve materials-handling…
Q: Phillips Corporation is a major manufacturer of food processors. It purchases motors from Viking…
A: Economic Order Quantity (EOQ): Economic order quantity is the quantity of order that is purchased…
Q: A local distributor for a national tire company expects to sell approximately 9,600 steel-belted…
A: Economic order quantity refers to the optimal amount of inventory a company should purchase in order…
Q: PLEASE TO PERFORM IN EXCEL AND SHOW FORMULAS Comercial El Suspiro, S.A., purchases 2'100,000 units…
A: The reorder point (ROP) is the inventory level that causes an action to be taken to refill that…
Q: ssume that Laptop parts assembly company producing 650 laptops during 2019. The management has drawn…
A: Standard input for 650 laptops Standard quantity 650 X 30 19,500 Less: natural loss 3%…
Q: A process control manager is considering two robots to improve materials handling capacity in the…
A: Calculation of Robot to be selected on the basis of ROR is shown below: Formula sheet for the above…
Q: Management of Mittel Company would like to reduce the amount of time between when a customer places…
A: 1. Throughput Time = Process time + Inspection Time + Move Time + Queue Time = 2.6 days + 0.6 days +…
Q: Nash Corporation manufactures and sells custom snowmobiles. From the time an order is placed till…
A: Manufacturing cycle efficiency formula, =Value added time / Throughput time
Q: Metal Fabricators uses stainless steel as an input to its manufacturing processes. Stainless steel…
A: Metal fabricators On 01.11.20X1, Enters into derivative to buy 10 tons of chromium for delivery on…
Q: Metal Fabricators uses stainless steel as an input to its manufacturing processes. Stainless steel…
A: Metal Fabricators uses stainless steel as an input in its manufacturing process. Stainless steel…
Q: Oakwood Company produces maple bookcases. The following information is available for the production…
A: 1.
Q: The XYZ company has traditionally ordered ink refills 80 units at a time. This company estimates…
A: Push systems - These inventory management systems stock and control inventory based on the forecasts…
Q: PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS Comercial El Suspiro, S.A., purchases 2'100,000 units…
A: The question is related to the Inventory Management. Reorder point is calculated with the help of…
Q: A manufacturer of thermostats uses a kanban system tocontrol the fl ow of materials. Th e packaging…
A: Kanban (Japanese for sign) seems to be a technique of stock control being used just-in-time (JIT)…
Q: A machine that produces a certain piece must be turned off by the operator after each piece is…
A: Net present value refers to the amount present today for an asset based on the value that will be…
Q: Janice Huffman has decided to start Finch Cleaning, a residential housecleaning service company. She…
A: d. Number of houses cleaned 15 25 35 The total expected cost of equipment rental 700 700 700…
Q: The yearly demand for a screen is 120,000 pc. Average cost per piece is $100; holding cost rate is…
A:
Q: It has been found from experience that an exclusive clothes shop makes anaverage of four sales every…
A: Solution:
Q: For a Spring Sale event, a buyer plans to purchase 250 floral print dresses to retail for $79.99…
A: Markup % on Retail=Markup % on Cost100%+Markup % on Cost
A shop owner uses a reorder point approach to restocking a certain raw material. Lead time is six days.
Usage of the material during lead time is
deviation of 4 pounds. When should the raw material be reordered if the acceptable risk of a stockout is 3%?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The weed killer company uses 30 gallons (demand rate) of weed kill per day. The supply of weed kill is replenished when the amount on hand is 170 gallons (reorder point). After an order is placed, it takes about 4 days on average to receive the order. Safety stock is 50 gallons, which provides a stockout risk of 9.01%. What amount of safety stock would provide a stockout risk of 4.01%? Assume the lead time is distributed normally: therefore, the lead time will have a standard deviation that you need to initially solve for. Show all work.Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of seven days, and a desired safety stock of 2,500 lb. a. Determine the order point. b. Determine the number of pounds to be issued from safety stock if the new order is four days late.Chocolate Company is interested in cutting the amount of time between when a customer places an order and when the order is completed. For the first quarter of the year, the following data were reported: Inspection Time 0.5 days Process Time 2.8 days Wait Time 16.0 days Queue Time 4.0 days Move Time 0.7 days Compute the throughput time. Answer(days)
- Blossom Company sells 320 units of its products for $20 each to Wildhorse inc. for cash. Blossom allows Wildhorse to return any unused product within 30 days and receive a full refund. The cost of each product is $11. To determine the transaction price, Blossom decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability weighted amount. Using the probability-weighted amount. Blossom estimates that (1) 7 products will be returned, and (2) the returned products are expected to be resold at a profit. Prepare the journal entries for Blossom at the time of the sale to Wildhorse including any expected returns. The company follows IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "0" for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Cash (To record…Stocks of cement on a construction site are allowed to run down to a level of 3 tonnes before being replenished. Cement is used steadily at 50 tonnes per week. Cement costs 15 Euro per tonne and the cost of storage and deterioration per week is 10% of the cement price. Each time cement is ordered, there is a cost of processing this order of 1 Euro.How much cement should be ordered each time?What is the cost of ordering and storing the cement?A manufacturer occasionally needs a component in the manufacture of certain products. Its cost per startup is $125 and the cost of holding a component in stock is $1.65 per week. The gross needs for the next few weeks are as follows: Week 1 2 3 4 5 6 7 8 Raw needs 0 40 20 100 20 0 20 80 Knowing that the manufacturing time is one week and that there is no stock available, determine the planned receptions and launches as well as the total costs if the manufacturer decides to use: The economical quantity method to order The Fixed Interval Method The subdivision piece period
- A manufacturer occasionally needs a component in the manufacture of certain products. Its cost per startup is $125 and the cost of holding a component in stock is $1.65 per week. The gross needs for the next few weeks are as follows: Week 1 2 3 4 5 6 7 8 Raw needs 0 40 20 100 20 0 20 80 Knowing that the manufacturing time is one week and that there is no stock available, determine the planned receptions and launches as well as the total costs if the manufacturer decides to use: The economical quantity method to order The Fixed Interval Method The subdivision piece period will upvote thanks!!A piece of production equipment is to be replaced immediately because it no longer meets quality requirements for the end product. The two best alternatives are a used piece of equipment (E1) and a new automated model (E2). The economic estimates for each are shown in the accompanying table. The MARR is 15% per year. Solve, a. Which alternative is preferred, based on the repeatability assumption? b. Show, for the coterminated assumption with a five-year study period and an imputed market value for Alternative B, that the AW of B remains the same as it was in Part (a). [And obviously, the selection is the same as in Part (a).] Explain why that occurs in this problem.You have recently hired an equipment operator for $30.00 per hour. To determine his/her billing rate you simply multiply $30.00 by 1.20 to ensure you get a 20% profit margin. Is this process correct?
- Zeta Inc, has the following details: Average lead time - 10 days Maximum lead time - 15 days Minimum lead time - 6 days Emergency purchases - 4 days Average consumption - 15 units per day Maximum consumption - 20 units per day. Calculate Danger LevelIt has been found from experience that an exclusive clothes shop makes anaverage of four sales every fifteen minutes. If we randomly select a fifteenminute period, what is the probability that the shop will make: Less than three sales? Interpret your answer.You are asked to manage the purchases of potatoes (10 kgs per bag). The annual demand = 1200 bags, Deliveredpurchase cost = 30/bags, Annual carrying cost percentage= 10percent, Order cost = 50/order. The lead time is 5 working days. Assuming 24 working days per month. 5.1 Determine the Economic Order Quantity 5.2 Determine the reorder point 5.3 Determine the average inventory5.4 Suppose orders are placed only at review time. Find the optimal period and the optimal orderquantity.