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...

See similar textbooks

Similar questions

What are the primary components of the Wilson approach, and how do they contribute to inventory optimization?
Annual demand for squash racquets is 50,000 units, and carrying costs amount to P2 per unit. Order costs for the company amount to P5. The optimum order quantity in units for squash racquets is (rounded to the nearest unit):
Examine recent advancements or variations of the Wilson approach and their implications for inventory optimization in today's dynamic business environment.
Subject: Materials Management and Inventory Systems Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics: Demand (D) = 2,000 units/year, normally distributed Standard deviation of weekly demand = 3 units Ordering cost = $ 50 /order Holding cost (H) = $ 6.00/unit per year Desired service level = 90 % Lead time (L) = 5 weeks If the company uses a periodic review system, what should the review period (P) be (in weeks)? Pick the closest answer.
Ahmet Uslu experiences an annual demand of 220 000 MU for pro quality tennisballs at the İzmir Tennis Supply Company. It cost Ahmet 30 MU to place an order andhis carrying cost is 18%. How many orders per year should Ahmet place for the balls? Please mention formulas and do it in detail so I can understand.
Inventory management and demand planning at Dell The computer company Dell has long been seen as one of the most agile businesses in the industry. The success of Dell is in large part due to its highly responsive supply chain, which is capable of building and delivering customized products in a matter of days with minimal inventory. Dell’s ability to operate a build-to-order strategy is based partly on the modular design of many of their products but more particularly on a very high level of synchronization with their suppliers. There is a high level of visibility across the Dell supply chain with suppliers receiving information on Dell’s order book every two hours. Ahead of this information, suppliers are provided with capacity forecasts from Dell to enable them to produce at a rate that is planned to match actual demand. Each of Dell’s factories is served from a ‘vendor hub’, operated by third- party logistics service providers, the purpose of which is to keep a buffer of inventory…
Discuss the challenges of inventory control.
Inventory Planning in Procter & Gamble– Advantages and Disadvantages
Evaluate the ethical considerations involved in inventory optimization, including its social and environmental implications.
Please help solve all... please Geliga Bhd. is a distributor of industrial product in Johor. Item A is one of the materials needed in the production process. Item A is consumed at a steady usage at 4000 units per annum. The costs of ordering item A are invariant with respect to order size. The ordering cost has been calculated at RM30 per order. Each order is checked by an employee engaged in using item A in production who earns RM5 per hour irrespective of his output. The employee generates a contribution of RM4 per hour when he not involved in material checks and the stock check takes 5 hours. Annual holding cost amount to RM15 per unit. Required: a. Calculate the optimal order size of item A. b. The supplier of item A has recently offered Geliga Bhd. a quantity discount of RM0.24 per unit on the current price of RM24, for all orders of 400 or more units of item A.
An organization can use ABC analysis as a way of classifying its existing inventory. Explain how the ABC can be applied

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS

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