Compute the following: 1. Warehousing firm Case: Firm has a warehouse in Gurgaon and a firm rents out capacity for a month as a unit of time. It has physical warehousing space for storing 50000 MT of goods and is trying to decide on how much capacity to reserve for spot market customers for a coming December month. Forward market: Unlimited demand, market prices are Rs. 150 per MT, spot markets prices are 200 per MT. Demand for warehousing capacity in spot market in December follows normal distribution with mean demand being 10000 MT with standard deviation of demand being 3000 MT. Compute the optimum reserve capacity for spot market.

Compute the following: 1. Warehousing firm Case: Firm has a warehouse in Gurgaon and a firm rents out capacity for a month as a unit of time. It has physical warehousing space for storing 50000 MT of goods and is trying to decide on how much capacity to reserve for spot market customers for a coming December month. Forward market: Unlimited demand, market prices are Rs. 150 per MT, spot markets prices are 200 per MT. Demand for warehousing capacity in spot market in December follows normal distribution with mean demand being 10000 MT with standard deviation of demand being 3000 MT. Compute the optimum reserve capacity for spot market.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A hardware store sells paint that has a demand of 9,706 gallons per year. The store purchases the paint from a supplier for 11.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 175 dollars per order. The paint supplier has a lead time of 10 days. What is the annual ordering cost if the store uses the order quantity of 2,103 gallons per order? Assume EOQ model is appropriate. Use at least 4 decimal places.
Question: Pak Punjab recently started a new brand. The monthly demand has increased from 1000 kg to 2000 kg. This has caused their monthly consumption to increase from 1,666.67 kg to 3,333.33 kg. They placed their order of raw material to Gohar Traders who gave them a 20% discount on the market rate that is Rs.37 per kg. They Ordering Cost will be 166% of the purchase price per kg. The company has to bear a storage cost of 5% on average inventory. The interest cost will be 2 % per year while obsolescence cost is now increased to 8% from 5%. Calculate EOQ from the information given above and interpret the result. Calculate the number of orders to be placed per year. Calculate Total Ordering Cost & Total Carrying Cost
A to make or buy the managed is im dilemma of whether product. Suppose item is purchased tham cost Rs. 25 Per unit, ordering cost is Rs. 5 Price is Yearly demand is 2500 units and average holding cost is 10%. If firm set up cost is Rs. 500 cmd the manu factures Yearly manufacturing (ost is RS. 22 Ped unit. When should be done? or buy? Make
SamaCell has a demand of 2,000 cells per year. The cost of each unit is $80, and the inventory carrying cost is $10 per unit per year. The average ordering cost is $30 per order. It takes about two days for an order to arrive and there are 250 working days per year. Round to two decimal places. a) What is the EOQ? units. b) What is the average inventory if the EOQ is used? units. c) What is the optimal number of orders per year? orders. d) What is the optimal number of days in between any two orders? days. e) What is the annual cost of ordering and holding inventory? USD. What is the reorder point (ROP)?
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Phillips Corporation is a major manufacturer of food processors. It purchases motors from Viking Corporation. Annual demand is 52,000 motors per year or 1,000 motors per week. The ordering cost is $360 per order. The annual carrying cost is $6.50 per motor. It currently takes 2 weeks to supply an order to the assembly plant. Q. Now assume that demand can vary during the 2-week purchase-order lead time. The following table shows the probability distribution of various demand levels: Total Demand for Motors for 2 Weeks Probability of Demand (sums to 1) 1,600 0.05 1,800 0.20 2,000 0.50 2,200…
(D) Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost minimizing solution for this product each year? ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.
Princeton GI Roofing Ltd wants to reduce its total inventory cost using the appropriate EOQ model. Currently, it orders 2170 thick gauge roofing sheets per batch. Annual demand is projected to be 43420 sheets. The ordering cost is Php 120. The average carrying cost is equivalent to 20% of the unit acquisition price of Php 400. Lead time is three days. Assume a 365 day year. Answer the following:g. Based on its current practice, how many times does it order in a year? Express your answer up to the hundredths place (two decimal places). h. Based on its current practice, what is its average inventory level? Express your answer up to the nearest integer or whole number.i. Based on its current practice, what is the company's total annual inventory cost? Express your answer up to the nearest centavo.
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A store sells t-shirts. The average selling price is Rs.15 and the average variable cost is Rs.9. Fixed costs of operating the store (its operating expenses) are Rs. 100,000 per year. Find Break-even in units, P/V ratio and margin of safety. How many shirts must be sold to earn a targeted profit of Rs.20,000?
3. Alocal retailer anticipates an annual demand 12000 units of a product. The retailersallows shortages for that product, and these shortages are backordered at a rate of 3 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal order size in units? Round-up to the nearest integer a. 2530 b. 12000 c. None is correct d. 0 e. 2500
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