A small mail-order company uses 19,500 boxes a year.Holding cost rate is 19 percent of unit cost per year,and ordering cost is $27 per order. The followingquantity discounts are available. Number of Boxes Priceper Box 1,000 to 1,999 $1.20 2,000 to 4.999 1.15 5,000to 9,999 1.10 10,000 or more 1.05 a. Determine theoptimal order quantity. Optimal order quantity 2, 297Numeric Response 1. Edit Unavailable. 2,297incorrect.boxes b. Determine the number of orders peryear. (Round the final answer to 1 decimal place.) No.of orders per year 8.4 Numeric Response 2. EditUnavailable. 8.4 incorrect.

Answered: A small mail-order company uses 19,500…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Please do not give solution in image format thanku A small mail-order company uses 14,000 boxes a year. Holding cost rate is 18 percent of unit cost per year, and ordering cost is $33 per order. The following quantity discounts are available. Number of Boxes Price per Box 1,000 to 1,999 $1.15 2,000 to 4,999 1.10 5,000 to 9,999 1.05 10,000 or more 1.00 a. Determine the optimal order quantity. Optimal order quantity boxes b. Determine the number of orders per year. (Round the final answer to 1 decimal place.) No. of orders per year
Give typed full explanation If a purchase discount is taken: I. there is a saving in purchase cost. II. ordering costs are reduced. III. carrying costs are increased. IV. there is not necessarily a net saving.
A store has collected the following information on one of its products:Demand = 4,500 units/year Standard deviation of weekly demand = 12 units Ordering costs = $40/order Holding costs = $3/unit/year Cycle-service level = 90% (z for 90% = 1.28) Lead-time = 2 weeks Number of weeks per year = 52 weeks a. If a firm uses the continuous review system to control the inventory, what would be the order quantity and reorder point?
The total stockout cost = $ enter your response here. (Enter your response as a whole number.)
is NOT generally a determinant of the reorder point 1)Length of lead time 2)Lead time variability 3)Purchase cost 4)Rate of demand
During the last 5 weeks, demands for a certain SKU at a retailer were 7 units (5 weeks ago), 4 units, 4 units, 4 units, and 5 units (last week). The retailer uses a period review model with order-up-to level 71 units, a review period of 2 weeks, and the lead time is 11 weeks. It is time to order. How much should the retailer order?
At Matthews Car Repair, customer demand for a certain brand of motor oil is normally distributed with a mean of 15 gallons and a standard deviation of 6 work-days. To be 95% sure that Compact Car Repair will not run out of oil, we should reorder when motor oil in stock is less than _______ gallons. a. 24.9 b. 22.6 c. 23.7 d. 20
21- Which one of the following represent FIFO method of inventory evaluation? a. Old items remain in inventory b. Old merchandise is sold first c. New merchandise is sold first d. Average number of goods are sold
40) PLEASE HELP WITH THIS! Gentle Ben's Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $3 per bottle and Is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 100 bottles (closed two weeks per year) with a standard devlation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. b. At what inventory level should he place an order? Note: Use Excel's NORM.S.IN( function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.
Which of the following are used for calculating economic order frequency? i. Total annual consumption ii. No of order per year iii. Buying cost per order iv. 365 days a. ii and iv b. i and ii c. iii and iv d. i and iv
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 112, 500 units per year, an ordering cost of $3 per order, and carrying costs of $1.20 per unit. a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be? d. What is the total cost of ordering and carrying inventory?
Daily demand for product sample kits is normally distributed with a mean of 35 units and a standard deviation of 4. Supply is virtually certain with a lead time of 9 days. The cost of placing an order is $20, and annual carrying costs for one kit is 25 percent. The price of one kit is $12.50. Assume a year has 365 days.If a 99% service level is desired, what is average inventory on hand? If demand had no variation, what would the reorder point be?

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