Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Show that the reorder point in the EOQ model equals
the remainder when LD is divided by the EOQ.
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- The following statements refer to the Economic Order Quantity (EOQ) model. Which of the following are true? I. The EOQ is found by minimizing the total demand function. II. Total annual purchasing costs affects the EOQ. III. The EOQ model takes the timing of reordering into account.arrow_forwardXXX Company stocks part AA at its warehouse for supplying field service offices. The yearly demand for these parts is 2600 units. XXX Company estimates its annual holding cost for this item to be $ 10 per unit. The cost to place and process an order is $30. The company operates 300 days per year, and the lead time to receive an order is 10 days. The standard deviation of the demand is 15. a. Find the economic order quantity b. Find the total cost c.Determine the ROP needed if the manager wants an annual service level of 99.9 percent. 12 Z- 3.1 15arrow_forward17) Can i get help with this question pleasearrow_forward
- A computer products store stocks color graphics monitors, and the daily demand is normally distributed with a mean of 1.6 monitors and a standard deviation of 0.4 monitor. The lead time to receive an order form the manufacturer is 15 days. Q 17.1- Determine the reorder point that will achieve 98 % service level.arrow_forwardDiscuss considerations that should be fully taken into account when developing inventory related relevant costs for use in an economic order quantity (EOQ) model. Why do conflicts arise between the EOQ model's optimal order quantity and the order quantity that managers regard as optimal?arrow_forward3 Which of the following inventory models considers backorder costs? O a. Economic Order Quantity with Quantity Discounts O b. Basic Economic Order Quantity C. Economic Order Quantity with Planned Shortages Od. Economic Production Quantityarrow_forward
- 1.) THI produces a GPS device that is becoming popular in parts of Scandinavia. When Thaarugo produces one of these, a printed circuit board (PCB) is used and it is populated with several electronic components. Thaarugo determines that it needs about 16,500 of this type of PCB each year. Demand is relatively constant throughout the year and the ordering cost is about $20/ order; the holding cost is 25% of the price of each PCB. Two companies are competing to become the dominant supplier of PCB, and both have offered quantity discounts as shown in the following table. paper). If you work with someone just turn in 1 paper with everyone's name. REMEMBER TO EXPLICITLY WRITE THE FORMULAS USED AND THE VALUE FOR EACH VARIABLE. Which of the two suppliers should be selected if Thaarugo wishes to minimize total annual inventory costs? Explain. Supplier A- Quantity 1-199 200-499 500 or more Supplier A Price $38.60 $35.75 $34.80 un names on a Supplier B- Quantity 1-299 300-999 1000 or more…arrow_forwardkaiarrow_forwardBest Buy's monthly demand for an Olympus Digital Camera FX 5500 is Poisson distributed with a mean of 3 cameras/month. The order quantity is 6 cameras, holding costs are $6.00 per camera per year, the backorder cost per outage is $12.00/unit, and the lead-time is 1 month. Determine the safety stock. 00 01 02 03 O4arrow_forward
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