The Bosch factory in New Bern, NC uses dishwasher motors at a steady rate of 17308 units per year. Bosch procuresthese units from a supplier at a purchase cost of $58 per unit. Bosch receives an order 26 days after it is placed.Regardless of the number of units ordered, Bosch incurs a fixed cost of $2988 for placing, shipping, and receiving theorder. The holding cost per unit per year is 30% of the purchase cost per unit. Assume Bosch operates 364 days, 52weeks, or 12 months per year.Calculate the average time a unit spends in inventory between orders in DAYS for the optimal order quantity from theproblem above.Rounding instructions• Carry your calculations to at least 3 decimal places.• Enter your answer rounded to one decimal place (nearest tenth).

Given the data, Annual demand is 17308 units per year, The fixed cost for placing the order,…

Answered: Calculate the average time a unit…

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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HairGlow uses a chemical in the production of one of its hair products at a rate of 1,000 litres per year. The cost of placing an order and of receiving the chemical once it arrives in the warehouse is Ksh 30 and Ksh 70 respectively. The chemical is purchased at Ksh 20 per litre. Holding costs per year for a litre of the chemical is considered to be 15 percent of its cost. Find the average inventory cost per year
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I need a detailed explanation on how to solve this problem: A paint shop implements an inventory policy on its stock of white paint, which costs the store $6 per can. Monthly demand for cans of white paint is normal with mean 28 and standard deviation 8. The replenishment lead time is 14 weeks. Excess demand is backordered, but costs $10 per back ordered can in labor and loss of goodwill. There is a fixed cost of $15 per order, and the holding cost is based on 30% interest rate per annum. In your computations, assume 4 weeks per month. - Write down the model name and parameters. - What are the optimal lot size and reorder points for white paint (include the formulas)? - What is the optimal safety stock (include the formula)? *** Suppose the paint shop from the above problem adopts a service level policy. - What are the optimal lot size and reorder points for white paint, such that 90% of the cycles are filled without backordering (include all formulas)? - What is the fill rate…

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Calculate the average time a unit spends in inventory between orders in DAYS for the optimal order quantity from the problem above.