The costs of placing an order are Rs. 150 per order. It is estimated that 1000 units will be used in the next 12 months. The carrying cost per month is Rs. 2.50. Assuming that the demand is deterministic and continuous and that no stock-outs are allowed, determine the optimal order quantity. 2. Based on the above, explain the following What is the time between the placing of orders? The procurement lead time is one month. What is the re-order point based on the on-hand inventory level?
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The costs of placing an order are Rs. 150 per order. It is estimated that 1000 units will be used in the next 12 months. The carrying cost per month is Rs. 2.50. Assuming that the demand is deterministic and continuous and that no stock-outs are allowed, determine the optimal order quantity.
2. Based on the above, explain the following
What is the time between the placing of orders?
The procurement lead time is one month.
What is the re-order point based on the on-hand inventory level?
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- The company Marombeiro is a commercial representative of a food supplement widely consumed in gyms. The average daily demand for the product is 1,500 units and a standard deviation of 300 units. Average shipping time is 5 days. Of course, if the order is placed at the end of the week, it may take a little longer to receive the shipment, so the standard deviation of the delivery time is 2 days. The unit has a value of R$ 50.00 per unit in stock, an order cost of R$ 50.00 and an annual maintenance fee of 20%. Assume the service level is 99.5%. How much safety stock should the company have? ( )7,500 units ( )19,350 units ( )3,074 units ( )7,916 unitsThe company Marombeiro is a commercial representative of a food supplement widely consumed in gyms. The average daily demand for the product is 1,500 units and a standard deviation of 300 units. Average shipping time is 5 days. Of course, if the order is placed at the end of the week, it may take a little longer to receive the shipment, so the standard deviation of the delivery time is 2 days. The unit has a value of R$ 50.00 per unit in stock, an order cost of R$ 50.00 and an annual maintenance fee of 20%. Suppose the company Marombeiro wants to have a Service Level of 97%. What would be the safety stock that would guarantee this level of service? ( )3,460 units ( )7,930 units ( )5,768 units ( )4,826 unitsA company has an annual demand for a specific item of 12,000 units. The carrying cost per unit per year is R.50, and the cost to place an order is R80. Calculate the Economic Order Quantity (EOQ) and also explain the following related terms • Re-order Level, • Ordering Point, • and Minimum Level.
- Catlea Merchandising is engaged in selling school shoesfor both boys and girls in their teenage years. Catlea needs 32,000 pairs of shoes in a year in order to satisfy the market demand. It costs ₱ 48 to place an order while ₱ 8 is needed to hold each quantity of shoe in Catlea's inventory. Upon checking on Catlea's supplier, it takes 8 days in between placing an order and eventually receiving it. a. Determine the Economic Order Quantityb. Determine the number of order per monthc. Determine the reorder pointAlina Limited is a manufacturer of widgets orders components for use in manufacturing. The estimated demand for the components during the coming year is 15,000. Order costs are $100 per order; carrying costs are $12 per component. Using the economic order quantity model What is Alina Ltd’s optimum order quantity? If the supplier guarantees a three (3) day delivery on any order that is placed, What is the re-order point?Annually a company requires 45 units of one of its components that it distributes throughout the country and its inventory maintenance cost is 10% of the cost of the product. The cost of the product is 2000 per unit. The cost to order is $ 125,000. Based on the above data, determine: 1. The economic quantity of the order2. If 10 days have elapsed since placing the order. What is the reorder point if the safety inventory is 1500 units?3. Quantity of the order to be made?4. What is the total cost of inventory management?
- The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of resin, what would be the average inventory level?For a given product, the order placement cost is $5, the holding cost per unit per year is $10, and annual demand is 1,600 units. If the EOQ is used, please answer the following questions: (please show calculations to reach your answer) 1. what's the economic order quantity? 2. what's the total annual logistics costs? 3. How many orders will be placed over the course of a year? 4. How much time elapses between order placements? 5. The purchasing manager has been negotiating with the supplier, and the latter has agreed to the following terms: Lower order placement costs ($4 instead of $5) and higher holding costs ($12 instead of $10). Do you think this a good deal? Why or why not?f2 Same problem statement: Weekly demand for DVD-Rs at a retailer is normally distributed with a mean of 1,000 boxes and a standard deviation of 150. Currently, the store places orders to the supplier, with a reorder point of 4,200 boxes. The order quantity to the supplier is fixed at 5,000 boxes. Replenishment lead time is 4 weeks, fixed order cost per order is $100, each box costs the retailer $10, and the inventory holding cost is 25% per year. Assume 50 weeks in a year. Given the problem parameters, what is the optimal order quantity the retailer should order? Numeric Response f3 2040 f4 f5 40 f6 0 4- f7 ♫+ f11 W f12. X insert prt sc + = O delete ← backspace home num lock
- 3. Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates 48 weeks in a year. Refer to the table for z-values. ≻Demand = 91,000 units/year ≻Ordering cost = $38.50/order ≻Holding cost = $4.50/unit/year ≻Average lead time = 9 weeks ≻Standard deviation of weekly demand = 120 units a. The economic order quantity for this item is _____ units. (Enter your response rounded to the nearest whole number.) b. If Petromax wants to provide a 90% service level, the safety stock is _____ units (enter your response rounded to the nearest whole number) and the reorder point is ____units (enter your response rounded to the nearest whole number).Question 1 For supply item ABC, Andrews Company has been ordering 400 units per week. A new purchasing agent has been hired by the company who wants to start using the economic-order- quantity method and its supporting decision elements. She has gathered the following information: Annual demand in units Lead time, in days Ordering costs Insurance and handling costs Purchase price per unit Return on cash investment 20,800 5 $22 $7 $15 15% RequiredDemand for an item is at the rate of 200 units per day. Stock will be replenished immediately upon order. Each order made will be charged a preparation cost of RM100.00, while a unit of goods that is kept in stock for a day will be charged a cost of RM0.50. Shortages are allowed to occur at a cost of RM3.00 for each unit of goods that are reduced for a day. Determine(i) the optimum order quantity(ii) the maximum allowable deficit size.