Optimal production run quantity (Q) b. Total annual inventory costs a. c. Optimal number of production runs per year

10. Mention and describe what each of the 4 types of approaches to demand analysis discussed in class consists of.

Master Company has obtained the following costs and other information pertaining to one of its materials: Working days per year Normal use per day (units) Maximum use per day (units) 250 Lead time ( in days) 500 Cost of placing one order Р36 600 Carrying cost per unit per year P4 Required: a. Calculate the economic order quantity b. Determinethe safety stock c. Compute the order point

2.7 Which of the following help explain how the Reorder Point (ROP) works in conjunction with the Economic Order Quantity (Q), the number of orders (N) and the time between orders (T)? a) The Economic Order Quantity (Q) and the Annual Demand (D) are used to determine the number of Order (N) b) The number of orders (N) and the number of days that a firm works (W) are used to determine the time span between orders (T) c) Orders are placed every T days unless the inventory on hand fall to or below the Reorder Point d) Only a and b e) f) Only b and c All of a, b and c 2.8 The objective of Inventory Management is to balance inventory investment (cost) and customer service. a) TRUE b) False 2.9 The Economic Order Quantity (EOQ), the number of orders, the Reorder Point (ROP), the time between orders are important analytics in Inventory Management. a) TRUE b) FALSE 2.10 The number of working days for a firm is an important input in calculating the components of the Economic Order Quantity…

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25   If safety stock is desired, it should be built into which portion of MRP? Select one: a. none b. finished goods c. raw materials d. any e. either raw materials or finished goods

Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows:  MONTH          DEMAND (UNITS)  January                4,220  February              4,320  March                  4,020  April                     4,420   May                     5,020  June                    4,720  July                     5,320  August               4,920  September         5,420  October             5,720  November         6,320  December         6,020 Using linear regression analysis, what would you estimate demand to be for each month next year? (Round two decimal places)  To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units…

Fanning Company and Finch Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Actual manufacturing overhead Actual direct labor hours Underapplied overhead Overapplied overhead) Required Fanning Company Finch Company $ 145,750 $ 261,600 23,000 27,000 10,500 $ 21,000 a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.

Economic order quantity (Q*) is 6,000 units. Annual demand (D) is 12,000 units. Find number of orders per year (N*) and time between orders (T*) in weeks. N*=2 times per year, T*= 0.5 years N*=0.33 times per year, T*= 13 years N*=4 times per year, T*= 0.33 years N*=0.25 times per year, T*= 4 years N*=2 times per year, T*= 26 weeks OO O

a) The average monthly demand requirement = ____units (round to nearest whole​ number.) B) The total stockout cost​ = ​$____(nearest whole number) C) The total inventory carrying cost​ = ​$____(nearest whole number) D) The total​ cost, excluding normal time labor​ costs, is​ = ​$_____(nearest whole number)