An automotive supply store sells aproduct that has a demand of 400units per month. Its supplier chargesan ordering cost of $60 per orderand $25 per unit with a 20%discount for orders of 250 units orhigher. The store incurs a 20%annual holding cost. What is thestore's annual holding cost if itorders at a quantity of 300 units?Please give solution in correct and stepby step detailed format thankuDon't give solution in image format

The cost of maintaining or storing inventory over the course of a year is represented by the annual…

Answered: An automotive supply store sells a…

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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The Big Buy Supermarket stocks Munchies Cereal. Demand for Munchies is 4,000 boxes peryear (365 days). It costs the store $60 per order of Munchies, and it costs $0.80 per box per yearto keep the cereal in stock. Once an order for Munchies is placed, it takes 4 days to receive theorder from a food distributor. Determine The reorder point
Cranium, Inc., purchases term papers from an overseas supplier under a continuous review system. The average demand for a popular model is 300 units a day with a standard deviation of 30 units a day. It costs $60 to process each order and there is a five-day lead-time. The holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. Cranium operates 200 days per year.
You have electronics store, and you are planning to buy headphones from china. The supplier in china offers you three different prices for the same headphone. The discount you will get is based on the quantity you order. Below is quotation from the supplier. PRICE RANGE QUANTITY ORDERED Headphone Price Initial price 0 to 999 $200 Discount price 1 999 to 1999 $150 Discount price 2 2000 and above $100 Annual Headphone Demand (Units) = 20000 Ordering or Setup Cost per Order ($) = 1000 holding cost percentage of unit price = 5% What should the order quantity be in order to minimize the total annual cost?
Demand for your product averages 10,000 units per year. Placing an order costs $500. The holding cost per unit per year is 15% of the cost of the item, and items cost $6.00. What is the EOQ?
The relationship between price and quantity supplied is typically O direct O inverse
An electronics retailer wants to develop an inventory policy to achieve 99% chance of not getting stockouts for a chip. The daily demand for the chip is estimated to be Normal with mean 200 and standard deviation of 20. They count the chip inventory every 2 weeks to place an order, and it takes 11 days for the ordered chips to be delivered. The retailer operates 7 days a week, 365 days a year. They are going to implement an order-up-to model. A) What base stock level should they choose? B) What is the number of chips they would have on order (on average)? C) When they checked their inventory of chips to place a new order, they found that they ran out of stock completely. In addition, they have 10 chips on way to be delivered, while there are five customers who paid for 20 chips in total and are waiting to receive their chips. How many chips should the retailer order?
Please do not give solution in image format thanku A distributor of computer monitors purchases the monitors from an overseas supplier under a continuous review system. The average demand for a popular computer monitor is normally distributed with a mean of 50 units a day and a standard deviation of 10 units a day. It costs $75 to process each order and there is a 16 day lead time. The holding cost for each monitor is $20 per year and the distributor wishes to maintain a 90% service level. The distributor operates 300 days in a year. Use the information in Scenario 9.10. If lead-time increases by nine days, what is the reorder point needed to maintain a 90% service level? Group of answer choices greater than 1,000 units but less than or equal to 1,250 units greater than 1,250 units less than or equal to 750 units greater than 750 units but less than or equal to 1,000 units
A company has an average demand of 30 units per day. The supplier's lead time averages 7 days. Assume that the combined standard deviation of demand over the lead time has been calculated and is equal to 20 units. One unit costs $10 and the inventory carrying cost is 25 percent. What is the reorder point for the company if it decides on a 99 percent service level?
the ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy. discuss the statement and support your answer
A bedding store has a steady demand for 300 mattresses each year. The store orders mattresses from a regional wholesaler at a cost of $50 per order. The cost of each mattress depends on the order size, and the annual holding cost for mattresses is 5% of the unit cost. The store sells the mattresses for a retail price of $250. a. Use this information to fill in the following table in your answer booklet: D Annual demand Order cost Co Holding cost ratio I Selling price per unit 7" Annual revenue rD b. The wholesaler offers the following discounts depending on the order size: Discount category Order size Discount Unit cost C 1 0-49 0% $200 2 50-99 5% $190 3 100 or more 10% $180 For each discount category, find the holding cost C₁, economic order quantity Q and total annual cost TC TC = = 10 °C ₂ + 2 = C₁ + DC Co+DC. How many mattresses should the store order at a time to minimise the total annual cost? c. Fill in the following table in your answer booklet based on the economic order…
A coffee shop consumes 350 lbs of coffee per week at a steady rate. The coffee shop buys coffee from a supplier at the cost of $10 per lb, and ordering cost of $5 per order. The supplier takes 8 days to deliver an order (assume that 1 week = 7 days). What should be the reorder point (in pounds) for the coffee shop (i.e., at what level of inventory it should place an order with the supplier).
Every year XYZ Corp. sells 3,300 units of its product. It is charged $56.50 every time it reorders from its supplier and its inventory holding costs are $6.20 per unit. In order to minimize overall inventory costs, what would be the firm's average number of units that it holds?

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