ECURUMIC ORDER QUANTITY CALCULATIONS (2 QUESTIONS)Company uses 800 units of a product per year on a continuous basis. The productyear and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed and thea safety stock of 5 days usage in inventory.has carrying costs of $50A. Calculate the economic orderquantitya. 98B. Determine the reordera. 150 days(3CASH DISCOUNTSpoint.ONS)(Assume(EOQ).a 360-day year.)perunit perfirm requires

Answered: Image /qna-images/answer/85049717-81d5-45bb-ae7f-bc00dbda36a3.jpg

Answered: Company uses 800 units of a product per…

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

Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values. Part 2 a) What value of Z should be applied? ▼ 1.28? 2.06? 1.04? or 1.65? Part 3 b) How many drives should be carried as safety stock? ___________ units (round your response to the nearest whole number). Part 4 c) What is the appropriate reorder point? _________ units (round your response to the nearest whole number).
*Note: "11102" has been attempted and is not the correct answer to this problem.
Select correct option without explanation plz answer fast
One of the items you and your MBA buddie produce in your new business is sambocade cheesecake wild cherry based on an ancient recipe. One of the ingredients, we will call it açúcar, is the major component in the mixture. The demand for this item is very stable at 120 bags a day. However, the delivery lead times vary and has an average of 8 days and a standard deviation of two days. Tina, your other MBA buddie, suggested a 95% (Z = 1.65) service level for this product. What would be the appropriate reorder point for this item? 2,160 1,356 1,044 1,060 960 396 Not possible to calculate o o o o o
Wear A Mask (WAM) uses a continuous review system and operates 52 weeks per year with the following characteristics: Demand (d) = 52,505 units/week Ordering cost (S) = $55.00/order Holding cost (H) = $2.50/unit/year ■ Lead time (L) = 3 week(s) Cycle-service level = 90%, z = 1.28 ▪ Demand is normally distributed, with a standard deviation of weekly demand of 103 units. ■ ▪ Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders. What is the optimal order quantity? (Enter your response rounded to nearest whole number.)
Vell Inc. uses lean principles to reduce cycle time. Through production improvements the process time was reduced from 4.5 days to 2 days. Inspection time is 0.25 days. Strategic rearrangement of the production area reduced move time to 0.1 days. Wait time was 3 days, but due to improved scheduling and ordering has been reduced by 2.25 days. Total cycle time for Vell after the improvements is: Multiple Choice 7.6 days. 2.75 days 5.35 days O2.0 days 3.1 days
Inventory Control – Definitions, Objectives and Activities
A National chain of type fitters stocks a popular type for which the following information is available. The company operates on 50-week year and Normally operates from Monday to Friday only. Average usage 140 types per day Minimum usage 90 types per day Maximum usage 175 types per day Lead time 10 to 16 days Reorder quality 3000 Cost per types n$1500 Holding cost per unit 3% of unit cost Ordering cost per year n$75.50 Calculate the average level of inventory?
snip
Sunrise Garden Center buys 425 bags of fertilizer per month for feeding and weeding lawns. The ordering cost is $15.00. Holding cost is $0.10 per bag per year. a. How many bags should Sunrise order at a time? Sunrise should order bags at a time. (Enter your response rounded to the nearest whole number.) b. What is the time between orders? The time between orders is months. (Enter your response rounded to one decimal place.)
“oh fada” receives supplies from a wide range of suppliers directly and adds value by breaking down bulk, customising certain items, and holding stocks until customers require them. The number of inflows of various ranges of goods serving the same purpose has begun to increase with several large amounts laying ideal in warehouse and threatening to become obsolete and also adding up unnecessary cost. The coding system does not allow for ease of identification of the products and wrong item are often picked as the difference between the right and wrong item can be just one digit. Orders are received by telephone and there is no provision for electronic ordering. The stock coding system is a sequential one and has contributed to several issues including inaccurate order entry as it is not possible to find the product details from the codes in use. The products for the orders are manually picked by a team, stock records is done manually with a lot of errors and does not update stock…
Differentiate between 'order quantity' and 'order winners' providing examples 1000 words

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

Company uses 800 units of a product per year year and order costs of $300 per order. It takes a safety stock of 5 days usage in inventory.