Lulu hypermarket estimates daily demand of 16.25 kgs for a product. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 6 days per week, and a total of 240 workdays per year. What is the minimum annual total holding and ordering cost in RO? Round-up to the nearest integer O a. 649 O b. None is correct O c. 104 O d. 152 O e. 625

Lulu hypermarket estimates daily demand of 16.25 kgs for a product. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 6 days per week, and a total of 240 workdays per year. What is the minimum annual total holding and ordering cost in RO? Round-up to the nearest integer O a. 649 O b. None is correct O c. 104 O d. 152 O e. 625

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

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

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

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Suppose that R&B Company has a soft drink product that shows a constant annual demand rate of 3600 cases. Ordering costs are $20 per order and holding costs are $0.77. Find the EOQ. Round to two decimal places. __________________ Find the order cost using the EOQ as the quantity. Round to two decimal places. _________________
40) PLEASE HELP WITH THIS! Gentle Ben's Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $3 per bottle and Is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 100 bottles (closed two weeks per year) with a standard devlation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. b. At what inventory level should he place an order? Note: Use Excel's NORM.S.IN( function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.
Alocal whole seller for Lipton tea estimates an annual demand of tea at 3900 kgs. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 6 days per week. What is the economic order quantity (EOQ)? Round-up to the nearest integer- O a. 1249 kg O b. 267 kg O c. 395 kg O d. 559 kg O e. None is correct
I need answers A company uses on an average 216 parts a day with a standard deviation of 16 parts per day in a manufacturing process. Cost of placing and receiving an ordering is BDT 40,000. Estimated monthly carrying cost is BDT 90 per part. Orders are delivered approximately 7 days after being placed. The delivery time is normal with a mean of 7 days and a standard deviation of 2 days. The company is open 360 days per year. Find the order quantity that is economical. If the Company takes 3% stock out risk, then find safety stock (SS) quantity and Re-Order Point? 3.If the supplier offers a discount of BDT 8 per circuit board for purchasing of 4000 boards at a time, then financially evaluate and justify whether the company will go with the offer or not? 4.The person who orders the boards follows this rule: Order when the amount on…
Discount-Mart, a major East Coast retailer, wants todetermine the economic order quantity (see Chapter 12 for EOQformulas) for its halogen lamps. It currently buys all halogenlamps from Specialty Lighting Manufacturers in Atlanta. Annualdemand is 2,000 lamps, ordering cost per order is $30, and annualcarrying cost per lamp is $12. a) What is the EOQ?b) What are the total annual costs of holding and ordering(managing) this inventory?c) How many orders should Discount-Mart place with SpecialtyLighting per year?
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 3,000 rolls. The cost per roll is $1,000, and the annual holding cost is 28 percent of the cost. Each order costs $75. Part 2 a. How many rolls should Yellow Press order at a time? Yellow Press should order enter your response here rolls at a time. (Enter your response rounded to the nearest whole number.) Part 3 b. What is the time between orders? (Assume 200 workdays per year.) The time between orders is enter your response here days. (Enter your response rounded to one decimal place.)
A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how much is delivered) and $1.20 per gallon. Annual holding cost is 35% of the price per gallon. Usage is 250 gallons/week. d) If order quantity is 2500 gallons, what is the sum of the ordering and holding costs PER GALLON? e) If orders are for EOQ amount, what is the annual cost of the inventory system as a percentage of the annual purchase cost?
A shop sells 5000 glasses in a year and the sales are relatively constant throughout the year. The glasses are purchased from Italy for RM 16.00 each. The lead time is 2 days. The holding cost per glass per year is RM 1.50 and the ordering cost per order is RM 8.00. There are 250 working days per year. What is the total annual inventory cost (including the purchase cost)? What is the duration between orders? What is the Re-order Point (ROP)?
Intan Store sells 240,000 cabinets per year. Based on the company's policy, a safety stock of 4 percent from yearly sales is to be maintained. The carrying cost is RM0.60 per unit annually and the ordering costs are RM150.00. The delivery time is 10 days. Order should be placed in multiple of 100 units. i. Compute the economic order quantity (assume 360 days per year). ii. Compute the total inventory cost. iii. Compute the reorder inventory level. iv. Compute the average inventory please answer complete
Intan Store sells 240,000 cabinets per year. Based on the company's policy, a safety stock of 4 percent from yearly sales is to be maintained. The carrying cost is RM0.60 per unit annually and the ordering costs are RM150.00. The delivery time is 10 days. Order should be placed in multiple of 100 units. i. Compute the economic order quantity (assume 360 days per year). ii. Compute the total inventory cost. iii. Compute the reorder inventory level. iv. Compute the average inventory. Please answer only part 4
A firm requires 90,000 units (D) over a 120-day production period and is placing 2-orders of equal quantity (O). Inventory is used at a constant daily rate. Ordering and Holding Costs are accounted for at end of the production period. Ordering Costs (OC) are $5,000/order and Holding Costs (HC) are $4.00/unit based on average inventory. The price per unit of inventory is $50 (C"). The firm pays for the inventory 5-days after delivery. The firm's cost of capital is 10% (1). For the inventory system, the SECOND order is delivered at f= and payment for that order is made at f= Total Cost Ordering Costs + Holding Costs + Item Cost Total Cost OCx (D/Q)] + [HC (0/2)] + (C x D) Order Number 1 2 - Delivered At t= ORDERING COSTS HOLDING COSTS 5, 120 60, 65 120, 125 5, 10 0 Order Quantity 45,000 Cost $10,000 Payment Due At t= Ⓒ 5 150 PVF 0.998632 0.960526 PV $9,605