The Gentry Garden Center sells 120,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, the inventory carrying cost is 20%, and the cost of placing an order with its supplier is $20. a. What is the Economic Ordering Quantity? b. What is the total Inventory cost with the safety stock? c. How often must the company order?
Q: Ray wishes to determine the optimal order quantity for its best-selling bike in his bike store. Ray…
A: Inventory cost is the amount that is incurred by the company on managing the stock in the…
Q: A manufacturing company has been inspecting units of output from a process. Each product inspected…
A: Defects per million opportunities is a metric that quantifies the number of flaws or faults in a…
Q: What conditions must a machine guarding meet in order to be effective? Give an overview of each…
A: Machine guarding refers to the protective devices used to safeguard workers from the hazards of…
Q: How can Lean Six Sigma principles be applied to streamline the production process in a manufacturing…
A: Lean Six Sigma is a business model that combines the ideas of Lean Manufacturing and Six Sigma to…
Q: 1. Construct an AON network diagram from the data given 2. Construct an AOA network diagram from the…
A: A network diagram is a graphical representation of project which helps to identify the activity…
Q: Consider an Erlang loss system. The average processing time is 3 minutes. The average interarrival…
A: Given that: Average Processing time (p) = 3 minutes Average Interarrival Time (a) = 2 minutes No of…
Q: 32 - A hamburger factory produces 60,000 hamburgers each week. The equipment used costs $10,000 and…
A: Given: The number of product H produced per week is N=60000. The equipment cost is Ce=$10000. The…
Q: Customers arrive at Rich Dunn's Styling Shop at a rate of 3 per hour, distributed in a Poisson…
A: Arrival Rate (λ) = 3 per hourService Rate (μ) = 8 per hour
Q: Antique manufactures old-fashioned telephones for use in movie scenes (and other displays).…
A: Annual demand (D) = 33,000 receptorsOrdering cost (S) = $15 per orderHolding cost (H) = $7 per…
Q: In a large microelectronics plant, the assembly cell for circuit boards has a demand for 250 units…
A: Container size = 24 units A or 10 units B Demand per hour = 250 Since there are two lines.
Q: This is a 2-part question scenario based on EOQ and Reorder Point: You have been selling your…
A: Mean Demand (d) = 44 per dayStandard Deviation of Demand (σd) = 5 daysLead time (LT) = 6…
Q: Explain what quality-related trade-offs might there be between having a single large, centralized…
A: One potential advantage of a large, centralised facility is that it can achieve economies of scale…
Q: a. Calculate the mean and range for the above samples. (Round "Mean" to 2 decimal places and "Range"…
A: Here, each sample is given with four readings, so, the sample size is 4, and the total samples=15,…
Q: a. What is the inventory control system for Tegdiws? Reorder quantity = 1,225 Reorder point =…
A:
Q: What lessons do you learn from the entrepreneurial journey of Innotech Oman
A: Innotech Oman is a forward-thinking Omani tech startup that specialises in digital transformation…
Q: S. For these projects, you will be placed in the position of a strategist tasked to complete an…
A: For the discussion of the above-given question, we have selected Unilever Ltd as a company. Unilever…
Q: meal to provide at least 550 units of fat, at least 260 units of carbohydrates, and at least 430…
A: Here, this question is related to formulating the LP, here, as per the Q, the solution is not…
Q: Find the optimal mimimal shipping cost: |
A: The transportation model is used to calculate the minimum cost of the route by selecting different…
Q: Rocky Mountain Tire Center sells 14,000 go-cart tires per year. The ordering cost for each order is…
A: Given: The total sell tires per year is D=14000. The ordering cost is S=$40. Formula used: The…
Q: How does the function of directing relate to the function of controlling in management?
A: The main function of directing in management is to provide guidance and leading worker to achieve…
Q: A shirt manufacturer buys cloth by the 100-yard roll from a supplier. For setting up a control chart…
A: C-chart is a model of control chart which considering the countable model of irregularities. The…
Q: 40 - A hospital is evaluating whether to outsource or perform in-house a large set of blood and…
A:
Q: Choose all the answers that correctly explain why an incoming inspection can be safely eliminated by…
A: Computer manufacturers may choose to forego incoming checks of monitors received from manufacturers.…
Q: What are some commonly used techniques for inventory management in operations management?
A: Since most businesses expect to recoup the cost of their materials and labour in less than a year,…
Q: 7a. Define industry. 7b. Discuss the life cycle of industry development in the United States, for…
A: Organizational development is a systematic approach that is used by the business for improving the…
Q: Three-tier supply chain map for the shirt with detailed explanation on why you choose to go with the…
A: Supply chain management helps the company in the proper utilization of resources so that the right…
Q: Is there a way to keep tabs on RFIs as they come in
A: RFIs (Requests for Information) are an important component of building projects. They are used to…
Q: Read this email from your supervisor to learn about the background, expectations, and parameters of…
A: Based on the facts presented, I advise a fictional North American software and hardware distribution…
Q: QUESTION 26 D a B. The slope of the line labeled "A" in the diagram is: order rate. rate of…
A: Inventory management includes all those methods that are adopted by the inventory manager for…
Q: ormation about the requirements for production of legs for a chair. Develop the MRP schedule for the…
A: Material requirements planning is the method of managing the inventory, which helps to create the…
Q: Activity Predecessor A B C D E F G H I J K L M N O A A C B C E,D G H F I,J K L J M,N 21112 663 29999…
A: A network diagram is a grapghical representation of project which helps to identify the activity…
Q: Please answer the question as quickly as possible A toy company has developed two new toys for…
A: Optimal production plan refers to the level of production that increases the efficiency of the…
Q: Strassel Investors buys real estate, develops it, and resells it for a profit. A new property is…
A: Find the given details below: Given details: The property sold for $…
Q: The flash floods in Kamwala South have taken their toll on the residents of the area. For many, the…
A: As per bartleby guidance we can only provide the 3 Ans only. Flash floods in Kamwala South have…
Q: You operate a carwash with one machine. When you charge $10 per wash you expect to have 20,000…
A: Economic analysis is how a firm analyzes its benefits and cost spending on investments in a project,…
Q: For a concert management company, there are multiple venues for performances in the US. The concert…
A: An Entity-Relationship (ER) diagram is a visual representation of data that describes how entities…
Q: elieve Unilever uses to develop and manage its supply chain relationships.
A: Unilever uses several techniques to develop and manage its supply chain relationship to achieve a…
Q: How can communication affect project delivery in project management?
A: Project management is dependent on effective communication. It can have a considerable effect on a…
Q: A gift shop expects to sell 400 wind chimes during the next year. It cost $4 to store one wind chime…
A: To minimize inventory costs, a business must balance the cost of holding inventory with the cost of…
Q: The supply chain involves activities related to coordination and collaboration with: a.…
A: (A) Distribution channels are the numerous routes through which goods are indeed transported from…
Q: please rewrite my job contribution for evaluation and add more stuff to make it look bigger. Thanks…
A: Human resource management includes all those activities that are important for selecting, as well as…
Q: Give typing answer with explanation and conclusion evaluating the performance of EBM?
A: An electron beam with a high energy level is used in the process of 3D printing, also known as…
Q: a product performance?
A: A common technique for monitoring a project's progress is earned value.
Q: 6.27 Explain the steps CRAFT would take with the following problem and determine the final layout.…
A: Find the Given details below: Given details: From To Chart From To A B C D E A - 5 6 3…
Q: How might globalization be a problem for a successful national company that is intent on going…
A: International Business refers to any business activity or any transaction that is done outside the…
Q: Question 1 A. Great Works Construction company has been hired to renovate an apartment building. The…
A: We calculate the expected duration and variance for each activity as shown below: The formulas used…
Q: List and discuss at least 5 critical success factors for project quality management
A: Project management must include the management of project quality. It entails the procedures and…
Q: the average aggregate inventory value of the product if ruby star used vendor 1 exclusively is…
A: Average weekly demand= 30 units Value of 1 unit = $60 Safety stock duration = 4 weeks Vendor 1:…
Q: Here is a 4 by 4 assignment problem. 10 40 35 54 0 89 82 68 35 90 40 42 83 80 69 74 The problem is…
A: Hungarian Method Hungarian method is an optimization technique to solve assignment problems.…
Q: An investor has at most $10,000 to invest in government bonds, mutual funds, and money market funds.…
A: Let the amount invested in Government bonds be G, mutual funds be M and Money market funds be K. The…
The Gentry Garden Center sells 120,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, the inventory carrying cost is 20%, and the cost of placing an order with its supplier is $20. a. What is the Economic Ordering Quantity? b. What is the total Inventory cost with the safety stock? c. How often must the company order?
Step by step
Solved in 3 steps with 3 images
- The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 97,200 units per year, an ordering cost of $4 per order, and carrying costs of $1.50 per unit. What is the economic ordering quantity? How many orders will be placed during the year? What will the average inventory be? What is the total cost of ordering and carrying inventory?Fisk Corporation is trying to improve its inventory control system and has installed an online system at its retail stores. Fisk anticipates sales of 58,800 units per year, an ordering cost of $4 per order, and carrying costs of $1.50 per unit. In the second year, Fisk Corporation finds that it can reduce ordering costs to $1 per order, but carrying costs will stay the same at $1.50 per unit. a-1. What is the economic ordering quantity for the second year? Economic ordering quantity (EOQ) a-2. How many orders will be placed during the second year? Number of orders a-3. What will the average inventory be for the second year? Average inventory Total costs units units a-4. What is the total cost of ordering and carrying inventory for second year? LA
- Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 112, 500 units per year, an ordering cost of $3 per order, and carrying costs of $1.20 per unit. a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be? d. What is the total cost of ordering and carrying inventory?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?a) c) If the production rate of processing the product is 30000 per year and the set up cost per set up is $300 and the product is allowed to sell during production. The maintenance department of a large hospital uses about 11000 cases of liquid cleanser annually. Ordering cost is $35, carrying cost per unit is 20 percent of the prices of a case, and the new price schedule indicates that orders of less than 200 cases will cost $80 per case, 200 to 299 cases will cost $78 per case, 300 to 399 cases will cost $76 per case, and orders larger than 399 will cost $75 per case.i. Determine the optimal order quantity for each of the rangesii. Determine the optimal total cost per year for each of the ranges.iii. Determine the minimal total cost solution to the problem.
- A company is targeting a cycle service level of 25%. What should their reorder point be if they have an average weekly demand of 100, a weekly demand standard deviation of 20, and a lead time of 5 weeks?Hi Tech Corporation (HTC) expects to order 295,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $300 per order; the purchase price per chip is $32; and the firm’s inventory carrying costs is equal to 18 percent of the purchase price. EOQ=2309.75. If HTC is able to negotiate a reduction in the fixed ordering costs to $250.00 per order, but HTC decides to carry a safety stock of 28 days of memory chip sales. With the reduced fixed ordering cost and the increased average inventory due to the safety stock carried, what is the additional total inventory costs due to the decision to balance out uncertainty by carrying the specified safety stock?Wang Distributors has an annual demand for an air-port metal detector of 1,400 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost,and the ordering cost is $25 per order. If Ping Wang, the owner,orders in quantities of 300 or more, he can get a 5% discount on thecost of the detectors. Should Wang take the quantity discount?
- The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics:Sales = 8 cases per week Ordering cost = $10 per order Carrying charge = 20 percent per year Item cost = $80 per casea. How many cases should be ordered at a time?b. How often will tea be ordered?c. What is the annual cost of ordering and carrying tea?d. What factors might cause the firm to order a larger or smaller amount than the EOQ?Fush uses an average of 40 boxes of paper serviettes a day. The restaurant operates 260 days per year, storage and handling costs for the serviettes are $ 30 per year per box, and it costs approximately $60 to order and receive a shipment of serviettes. a. Calculating the order size would minimise the sum of annual ordering and carrying costs? b. compute the total annual costs using your size from part a?Cherylene Brown has asked you to help her determine the best ordering policy for a new product. The demand for the new product has been forecasted to be about 1,000 units annually. To help you get a handle on the carrying and ordering costs, Cherylene has given you the list of last year's costs. She thought that these costs might be appropriate for the new product. Cost Factor Taxes for the warehouse Receiving and incoming inspection New product development Acct. dept. costs to pay invoices Inventory insurance Product advertising Spoilage Sending purchasing orders Cost ($) 2,050 1,600 2,500 500 600 800 750 900 Cost Factor Warehouse supplies Research and development Purchasing salaries & wages Warehouse salaries & wages Pilferage of inventory Purchase order supplies Inventory obsolescence Purchasing dept. overhead Cost ($) 300 2,750 30,000 12,800 800 500 300 1,000 She also told you that these data were compiled for 10,000 inventory items that were carried or held during the year. You…