The GIIC -Company must determine a policy for ordering coal to operate 15 smelters. Each smelter requires exactly 5 tons of coal per day to operate, and the firm operates 360days per year. The purchasing manager has negotiated a contract to obtain the coal for 5 BD per ton for the coming year. The purchasing manager has determined that theordering cost is 40 BD per order, and the cost of holding coal is 20% per ton of its value.i. Determine the optimal quantity of coal to receive in each order.ii. Determine the total inventory-related costs associated with the optimal ordering policy (do not include the costii. If five days' lead time is required to receive an order of coal, how much coal should be on hand when aniv. Optimal quantity 1837.11 Tons, Total cost 1837.11 BD, Inventory during LT 275 Tonsof the coal).order is placed?i. Optimal quantity 1469.694 Tons, Total cost 1469.694 BD, Inventory during LT 375 Tonsii. Optimal quantity 734.85 Tons, Total cost 1649.694 BD, Inventory during LT 150 Tonsv. Optimal quantity 1649.694 Tons, Total cost 1837.11 BD, Inventory during LT 150 Tonsii. Optimal quantity 1649.694 Tons, Total cost 27000 BD, Inventory during LT 275 Tons

Given- Annual demand (D) = (5 tons×15 smelters×360 days) = 27,000 tons per year Ordering cost (S)…

Answered: The GIIC -Company must determine a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Ollah's Organic Pet Shop sells bags of cedar chips for pet bedding or snacking (buyers choice). The supplier has offered the following terms: Order 1-100 bags, and the price is $6.00 a bag. Order 101 or more and the price is $4.50 a bag. Annual demand is 630, fixed ordering costs are $9 per order, and the per bag holding cost is estimated to be around $2 per year. Suppose the lead time for bags is a consistant 2 weeks, and the average weekly demand is 12.6 bags, with a standard deviation of 3.2 bags. If Ollah wants to maintain a 98% service level, what should her reorder point be? please show calculations.
Maira Hijab Enterprise (MHE) is a supplier that sells Exclusive Embroidery Silk Hijabs to boutique and online resellers. The annual demand is approximately 360 hijabs. MHE pays RM50 for each hijab and estimates that the annual holding cost is 2 percent of the hijab's value. It costs approximately RM100 to place an order (managerial and clerical costs). Required: Determine the economic order quantity (EOQ) (Round up your answers to the nearest figure). а. b. Assuming a 300-day work year, how many orders should be processed per year and what is the expected time between orders? С. Calculate the total cost for the order. d. After several months of the introduction of the Exclusive Hijab, MHE decides to all costs related to their product due to the increment of hijab’s costs by the supplier. MHE currently orders 1000 hijabs per month. The new information as regards to the Exclusive Hijab is as follows: i. The ordering cost for these is RM100 per order and ii. The carrying cost is assumed…
The distribution manager for Putnam Corporation is trying to establish the most economic ordering policy for the standard model of its best-selling microwave oven. He has control of the finished goods warehouse for the factory and must satisfy wholesaler demand. The following information is available: Wholesale value $100 Annual demand 50,000 units Std. Deviation of Demand 30 units per day Working year 250 days Production lead time 9 days Ordering cost for production $1,800 Holding cost per unit per year 20% of value Desired service level 96 percent: If Putnam wishes to use the periodic review system, what should be the safety stock, reorder point? If the current on hand inventory is 1,000 units, how many units should be ordered?
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A plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280 drills. The whole-saler’s average demand is 70 drills a week, and the lead time from the plant is 3 weeks. The wholesaler mustpay for the inventory from the moment the plant makes a shipment. If the wholesaler is willing to increase itspurchase quantity to 350 units, the plant will give priority to the wholesaler and guarantee a lead time of only2 weeks. What is the effect on the wholesaler’s cycle and pipeline inventories?
Double T appliance is a retailer of small appliances in West Texas. Double T gets all of their merchandise from GE which it then sells to the people of the South Plains. Their annual demand is 10,000 units and the ordering cost is $100 per order. The carrying cost per unit is $50.00 What is their expected annual carrying cost (not including the costs of the goods) if the Economic Order Quantity is used and is equal to 200 units?
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