Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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In each of the following, name the term defined or answer the question. Answers are listed at the bottom.
1. The model was most appropriate for making a one-time purchase of an item.
2. The model most appropriate when inventory is replenished only in fixed intervals of time—for example, on the first Monday of each month.
3. The model most appropriate when a fixed amount must be purchased each time an order is placed.
4. Based on an EOQ-type ordering criterion, what cost must be taken to zero if the desire is to have an order quantity of a single unit?
5. The term used to describe demand that can be accurately calculated to meet the need of a production
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- 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.arrow_forwardWhich of the following assumptions is not one of the Economic Order Quantity Model assumptions, which is the most basic of the Inventory models? a) No out of stock allowed B) Materials must be delivered in one go c) Ordening and receving times are known and fixed d) The supplier is allowed to make a dscourt based on the order quuantity e) Demand is known and foxedarrow_forwardA manufacturer of hospital supplies has a uniform annual demand for 80,000 boxes of bandages. It costs $20 to store one box of bandages for one year and $320 to set up the plant for production. How many times a year should the company produce boxes of bandages in order to minimize the total storage and setup costs? Question content area bottom Part 1 The company should produce boxes of bandages enter your response here time(s) a year.arrow_forward
- 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.arrow_forwardYou are conducting a retrospective analysis for an Order-Up-To system (thus, the unsold inventory at the end of a week is carried over to the next week). The beginning inventory in week 1 is 150 units, the demand in week 1 is 180 units and the demand during week 2 is 250 units. If you receive a shipment of 115 units every week, at the end of week 2, the inventory level is 180 the inventory level is 200 the inventory level is 310 the backorder level is 30 the backorder level is 50 none of the above is correctarrow_forward12 Which of the following is NOT an assumption of the economic order quantity model shown below? Select one: a. Demand is known, constant, and independent. b. Lead time is known and constant. c. Production and use can occur simultaneously. d. The only variable costs are setup cost and holding (or carrying) cost. e. Quantity discounts are not possible.arrow_forward
- How Tyler should plan on ordering the flour for his bakery. Based on the attached: How much should Tyler plan on ordering the flour for his bakery? When should Tyler order the flour for his bakeryarrow_forward16 Brooke Army Medical Center dispenses 390,000 bottles of brand name pharmaceutical annually. The optimal safety stock (which is on hand initially) is 1,000 bottles. Each bottle costs the center $10, inventory carrying costs are 30%, and the cost of placing an order with its supplier is $175. I What is the economic order quantity? Format is x,xxx (number only) What is the maximum inventory for this medication? Format is x,xxx How often must the center order (in days)? Format is xx days or x days How many orders of this pharmaceutical will need to be placed each year? Format is x or xx (number only)arrow_forwardWhat are order cycle costs if annual demand is 10,900 units, the order quantity is 1,800 units, and annual order cost is $140? What if the order size changes to 900 units or 10,900 units? Round your answers to the nearest cent. If the order quantity is 1,800 units, the order cycle costs are $ . If the order quantity is 900 units, the order cycle costs are $ . If the order quantity is 10,900 units, the order cycle costs are $ .arrow_forward
- Which of the following statements is false? a. Ordering in smaller lot sizes lead to lower inventory holding costs. b. Seasonal inventory is stored to cater predictable surge in demand. c. Cycle inventory is the average amount of inventory used to satisfy demand between replenishments. d. Safety inventory is kept when the demand is less than supply.arrow_forwardIn the basic EOQ model, the average inventory level is equal to one-halfthis value: A. Maximum inventory level.B. Order quantity.C. Reorder pointD. Both A and B.arrow_forwardCPG Bagels starts the day with a large production run of bagels. Throughout the morning additional bagels are produced as needed. The last bake is completed at 3 pm, and the store closes at 8 pm. It costs approximately $0.56 in materials and labor to make a bagel. The price of a fresh bagel is $2.29. Bagels not sold by the end of the previous day are sold the next day as "day- old" bagels for $0.15 each. CPG Bagels uses the Newsvendor model to management the inventory of the bagels. The critical ratio %. Report the answer without the percentage sign and keep one decimal in your answer. For example, if your answer is 0.9232 (92.32%), report 92.3 in your answer.arrow_forward
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