"Nordlund Boat Company has been repairing, refitting, and building custom boats for over 60 years in the Pacific Northwest." The company is located in Tacoma, Washington. One of the engine's most critical components is the exhaust manifolds. The company purchases this item from the best manufacturers in the world. TJ is the buyer in charge of managing this item. TJ's purchasing agent currently submits an order release for this item every 4 weeks. The company's annual demand is 400 units (2 units per working day). Nordlund's relatively low volume and quality focus, rather than volume focus, means the company cannot take advantage of quantity discounts. The supplier | has agreed to deliver this item within 1 week following an order release. For this reason, Nordlund has never had a shortage of exhaust manifolds. The total time between the release date and date of receipt is 1 week or 5 working days. The accounting has generated the following inventory-related costs. Procurement costs amount to $300 per order, including the labor costs, transportation costs, receiving and inspection costs, and moving costs. The holding cost is $200 per item per year, considering storage, damage, insurance, taxes, etc. With the added emphasis on efficiencies in the supply chain, the company president has asked TJ to seriously evaluate the exhaust manifolds' purchase. One area to be closely scrutinized for possible cost savings is inventory procurement. DISCUSSION QUESTIONS 1. What is the optimal order quantity of exhaust manifolds that should be placed in each order? 2. What is the exhaust manifold's reorder point (ROP)? 3. What cost savings will Nordlund realize if it implements an order plan based on EOQ? Show the detailed work for each question.

Given the following information for a purchased component, what is the total annual cost for the item? Annual demand = 500,000 Purchase price = $10 per unit Order quantity 100,000 • Order cost = $5 per order • Annual holding cost per unit = = $2 . $2.510,100 O $510,025 $510,250 O $5,100,250 O $5,100,025

At a recent manufacturing workshop, XYZ, Incorporated explained that demand for disposable masks increase rapidly in March 2020 when quarantine mandates first took effect. At the time, retailers could only place a single order to cover demands through the end of the summer. A certain retailer purchased disposal masks from a supplier at a cost of $20 per unit and sold them for $30 per unit. By the end of summer, demand for masks subsided considerably and all masks that weren't sold during the summer could be sold at a discounted price of $18 per unit. The retailer estimated that demand between March and August would be Normally distributed with mu = 10,000 and sigma = 1525 units With, supply chains becoming more stable since March 2020, the retailer is currently in the process of establishing a contract with a disposable mask supplier. The supplier has agreed to sell masks to the retailer for $18 per unit and will make deliveries any time the supplier places an order for a cost of $100…

Can ABC inventory classification be applied to manufacturing component inventories? Discuss.

Dave’s local college football team is playing for the national championship in next month’s bowl game, and he’s thinking about having “We’re number one” T-shirts imprinted in honor of the team. It’s too late to get the shirts before game day, but if he orders today, he can get them within a few days after the game.   The shirts must be ordered in multiples of 1000, and Dave has estimated the amount of profit he will make for possible outcomes of the game.   Given the following payoff table, what will Dave do if he uses the maximin criterion? The maximax criterion? The minimax regret criterion? Order no shirts $0 wins $0 loses $0 ties  Order 1000 shirts $800 wins $-200 loses $200 ties   Order 2000 shirts $1600 wins  $-400 loses  $300 ties

Inventory Control – Definitions, Objectives and Activities

What is the difference between a list of inventory items and their quantities on hand and a physical inventory?

please show work in excel   The New Haven Foundation gave a grant to the Affordable Computers Co.(ACC) to manufacture low cost computers for children in developing countries. ACC needs 3000 memory chips per month for use in producing these hardware. The ordering cost is 12 dollars, and holding cost is 0.3 dollars per chip per year.   a) What is the economic order quantity for the memory chips? b) Based on your answer to part (a), what would be the time between orders? (Hint: Q/D)

The cash discount is  1. the most common industry discount 2. given to the special vendors 3. Is given when they purchase a large quantity 4. given when the delivery is accepted early

Delaney Co. uses 12,000 of an item per year. They are open 300 days per year. The item takes 8 days from the time they place an order until they receive it. They like to maintain a safety stock of 200. What is Delaney's reorder point for this item?