What is the EOQ? What is the average inventory? How many orders should be placed each year?
Q: Al Fursan Inc. needs 300 kgs of a material per month (four weeks). It costs RO 10 to make and…
A: EOQ is the optimal quantity that a company can order to minimize its cost.
Q: Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are…
A: In the question it is given that, Total brackets used - 2500 Annual demand 2,500 Holding…
Q: A local distributor for a national tire company expects to sell approximately 9,600 steel-belted…
A:
Q: (**) Average weekly demand for free-range dog biscuits is 80 bags per week, with a standard…
A: Given Average weekly demand = 80 bags Standard deviation = 16 bags Lead time = 2 weeks Z=1.64 for…
Q: What is the reorder policy for BBB? b. What total annual cost does the model give
A: Reorder point refers to the level of inventory at which the stock should be replenished.
Q: Ann Chovies, owner of the Perfect Pasta Pizza Parlour, uses 20 pounds of pepperoni each day in…
A: What Is Inventory? Inventory is the raw materials, components and finished goods a company sells or…
Q: G-Tech’s monthly demand is 1000 units. You are in charge of the inventory department. You know that…
A: Monthly Demand (d)= 1000 Units Annual Demand (D) = 1000×12 = 12,000 units Holding cost (H) = $100…
Q: t’s your responsibility, as the new head of the automotive section of Nichols Department Store, to…
A: EOQ = sqrt (2DS/H) Annual Holding cost = EOQ/2 x H Annual ordering cost = D/EOQ x S Reorder…
Q: Enrun Corporation expects to order 140,000 memory chips for inventory during the coming year, and it…
A: Economic order quantity: Economic order quantity (EOQ) is the most cost-effective system of ordering…
Q: University Book Store purchases women's polo shirts from a supplier according to the pricing…
A: Economic order quantity = [ 2 x annual demand x ordering cost / holding cost of a unit per year]1/2…
Q: The XYZ Company purchases a component used in the production of automobile generators from an…
A: Annual demand (D)= 4,000×12=48000 Units Ordering costs(S) = $20 per order The unit cost (h)= $1.25…
Q: and for a popular athletic shoe is nearly constant at 1000 pairs per year for a regional division of…
A: Annual Demand (D)=1000 pairs Cost per shoe(C)=$54 Cot of placing the order(S)=$72 Annual holding…
Q: The stationary shop estimates that the average demand for a popular ball-point pen is 12,000 pens…
A: A small introduction about Reorder Point A reorder point (ROP) is the point at which your inventory…
Q: Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the…
A: The correct answer is as follows:
Q: QI AFG Company supplies an electronic amplifier to a company that incorporates these anmplifiers to…
A: Given- Annual Demand (D) = 4000 Units Unit Cost (P) = $10 Holding Cost (H) = 5% of Unit Cost =…
Q: The carrying cost curve and ordering cost curve of Bulldogs Inc.’s inventory intersect at 3,500…
A: Economic order quantity is the optimal order quantity that any company should purchase to reduce the…
Q: Tata Company manufactures Toyota cars. It produces 250 cars a month. It buys the tires for cars from…
A: : Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2,500 rolls. The…
A: Demand (D) = 2500 Ordering cost (S) = 50 $ Holding cost (H) = Cost per roll*Holding percent =…
Q: A company purchases special metal parts to make office furniture in lots of 100 units to satisfy an…
A: Given Information: Annual Demand (D) = 1600 units Holding cost (H) = $ 0.3 Ordering Cost (S) = $ 40…
Q: Princeton GI Roofing Ltd wants to reduce its total inventory cost using the appropriate EOQ model.…
A: Given, Annual demand, d=43420 sheets Ordering cost, o=Php 120 Holding cost, h=0.20 ×400= Php 80 Lead…
Q: Sunstar Ice Cream Sells 12,000 gallons of ice cream each month from its central storage facility.…
A: Given, Demand of ice cream, d = 12000 gallons Carrying cost, h = P 0.10 per gallon Ordering cost, o…
Q: A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady…
A: EOQ = 2 * S * DH S = Cost/ order = P1,080 D = Annual Demand = 32,000 H = Annual holding cost/ unit =…
Q: nventory Management Basic EOQ Webber Tools sells power washers and is open for business 320 days a…
A: According to the Guideline, I have answered first three sub-parts, these are explained step by step.…
Q: Demand for dishwasher water pumps is 7 per day. The standard deviation of demand is 2 per day, and…
A: Demand (d) = 7 per day Standard deviation of demand = 2 per day Lead time (L) = 4 days Service level…
Q: CA sells 600 bottles of vitamins per week at $ 100 per bottle. CA's supplier charges CA $ 30 per…
A: Economic order quantity is the optimum quantity of the order which minimizes the holding cost and…
Q: Mattress Firm sells water beds and assorted supplies. Their best-selling bed has an annual demand…
A: Given- Annual demand (D) = 395 units Ordering cost (S) = $43 Holding cost (H) = $5 per unit per…
Q: Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10…
A: Number of days per year (N) = 360 Daily usage (d) = 10 rolls Standard deviation (SD) per day = 2…
Q: Johnson's Juice sells bottles of "keep me awake during class" fruit juice to college students.…
A: Given,Annual demand of juice bottles= 88,000Holding cost = 16% = 0.16Setup cost = $ 45 per orderThe…
Q: Demand for your product averages 10,000 units per year. Placing an order costs $500. The holding…
A: Given - Annual demand (D)- 10,000 units Order costs (S) - $500 units Holding cost (H) - 15% of the…
Q: Bart’s Barometer Business (BBB) is a retail outlet that deals exclusively with weather equipment.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Ross White’s machine shop uses 2500 brackets during the course of a year, and this usage is…
A: Economic order quantity is the optimal quantity level that the business should buy to reduce the…
Q: Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity for its…
A: The formula for calculating EOQ is, EOQ=2 × Annual Demand × Ordering costHolding cost Total annual…
Q: The Cerebro Computer Store purchase printers for $100 each. Demand for this is constant during the…
A: EOQ is the economic order quantity that a company should purchase so that their annual inventory…
Q: A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady…
A: The re-order point is the point at which the company should purchase the new material or resources…
Q: Grey Wolf Lodge is a popular 500-room hotel in the North Woods. Managers need to keep close tabson…
A: Daily demand (d) = 275 bars Ordering cost (Co) = $10 Holding cost (H) = $0.30 Lead time (L) = 5 days…
Q: The expected annual usage of a particular material is 540,000 units, and the standard order size is…
A: Given that - D = 540,000 units EOQ = 36,000 units Co = P240
Q: The electrolyte drink for our beloved NMSU soccer team average normally distributed demand of 5…
A: The reorder point (ROP) can be defined as a degree of stock which triggers an activity to recharge…
Q: Petromax Enterprises uses a continuous review inventorycontrol system for one of its SKUs. The…
A: Inventory is the stock of goods that an organization maintains to keep the sales going. It is the…
Q: Calculate total annual ordering cost Calculate total annual carrying cost Calculate total annual…
A: As per the Bartelby gudilines, only the first three parts have been answered. A
Q: Instruction: Answer what is being required. You may compute them manually or use the Excel QM.…
A: λ=60×52=3,120 units per yearh=$0.005per unit per yeark=$12c=0.02Q=2Kλh=2kλh =2×12×31200.005=3870…
Q: Osprey Sports stocks everything that a musky fisherman couldwant in the Great North Woods. A…
A: a) order quantity D = 5 lures/day = 350 * 5 demand= 1750 lures /year S = $40 per order H = $1 per…
Q: The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually.…
A: Given data is Annual demand = 2,600,000 Ordering costs = P5,000 per order Carrying cost = P0.1 per…
Q: XYZ Pharmaceuticals sells COVID testing kits. Calculate the Economic Order Quantity, or EOQ, if…
A: The economic order quantity is the ideal order quantity for a business to obtain in order to…
Q: In the past, Taylor Industries has used a fixed−time period inventory system that involved taking a…
A: The ABC Method isolates providers and their stock into classes dependent on cost per unit and amount…
Q: The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitanproduces…
A: Q=2×C0×DCc=2×1,200×1,215,0000.08=2,916,000,0000.08=190,919 pounds
Q: Bart’s Barometer Business (BBB) is a retail outlet that deals exclusively with weather equipment.…
A: Below is the solution:-
Q: Al Khaleej Inc. needs 440 kgs of a material per month. It costs RO 100 to make and receive an order,…
A: Economic Order Quantity:- Economic order quantity is that quantity in which an enterprise should…
Q: The items have a standard cost of $81/unit. The monthly demand for items is normally distributed…
A:
Q: A small local pharmacy, Tacky Pharm sells self-test kits for diabetic patients. These kits cost…
A:
Q: Charles Cycles produces bicycles and tricycles. The setup cost when switching production from one to…
A: When a company manufactures its own items rather than ordering them from vendors, the term…
Fruitcake Specialists sells 36,000 fruit cakes annually. Annual carrying costs are P5 per fruit cake and the ordering costs are P100 per order. The firm has decided to maintain a safety stock of one month's sales or 3,000 fruit cakes. The delivery time per order is 5 days. Assume a 365-day a year.
- What is the EOQ?
- What is the average inventory?
- How many orders should be placed each year?
- What is the total inventory cost?
- What is the re-order point?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
- Daily demand for product sample kits is normally distributed with a mean of 35 units and a standard deviation of 4. Supply is virtually certain with a lead time of 9 days. The cost of placing an order is $20, and annual carrying costs for one kit is 25 percent. The price of one kit is $12.50. Assume a year has 365 days.If a 99% service level is desired, what is average inventory on hand? If demand had no variation, what would the reorder point be?I need answers A company uses on an average 216 parts a day with a standard deviation of 16 parts per day in a manufacturing process. Cost of placing and receiving an ordering is BDT 40,000. Estimated monthly carrying cost is BDT 90 per part. Orders are delivered approximately 7 days after being placed. The delivery time is normal with a mean of 7 days and a standard deviation of 2 days. The company is open 360 days per year. Find the order quantity that is economical. If the Company takes 3% stock out risk, then find safety stock (SS) quantity and Re-Order Point? 3.If the supplier offers a discount of BDT 8 per circuit board for purchasing of 4000 boards at a time, then financially evaluate and justify whether the company will go with the offer or not? 4.The person who orders the boards follows this rule: Order when the amount on…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?
- Ezrah is attempting to perform an inventory analysis on one of her most popular beauty products, the "Heavenly perfume. Annual demand for this product is 10,000 units with carrying costs of P50 per unit per year. The ordering costs for her company typically run P100 per order. Lead time averages 10 days( Assume 250 working days). Compute the total inventory costAn office supply store open five days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant at 210 boxes. When orders are placed, the entire shipment arrives at once. The cost per box is $29, and the inventory holding cost is 33%. Orders are placed at a cost of $43 each, including preparation time and communication charges, and the lead time is two days. (Assume the store operates 52 weeks per year.) (a) Find the optimal order quantity. (Round your answer to the nearest whole number.) (b) What is the total annual cost (in dollars)? (Round your answer to two decimal places.) $ (c) What is the reorder point? (d) What is the cycle time (in days)? (Round your answer to two decimal places.) daysYou are the operations manager of a firm that uses the continuous review (EOQ) system to control your inventory. Suppose the firm operates 52 weeks per year, 365 days, and has the following characteristics for its primary item: Demand = 25,000 units/year %3D Ordering Cost = $30/order Holding Cost = $8/unit/year Lead Time = 2 weeks Standard Deviation in weekly demand = 100 units %3D What is the economic order quantity for this item? Between 400 and 450 units O Between 450 and 500 units Fewer than 400 units O Greater than 500 units
- 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 $15 15% RequiredWeekly Average Demand 110 Standard deviation of (weekly) demand 30 Setup cost ($) 1400 Lead time (in weeks) 2 Procurement cost ($) 200 Holding cost /unit/week ($) 3 You are given the demand and inventory related information about a grocery store’s product in the table. The store is open for 46 weeks in a year. What is the reorder point if it wants to achieve a service level of 97%? (Do not round your intermediate calculations. Round your final answers to the nearest whole number.Dairy Ice Cream sells 12,000 gallons of ice cream each month from its central storage facility. Monthly carrying costs are P0.10 per gallon and ordering costs are P50 per order. Ignore potential stock out costs and assume a 30-day month. What is the EOQ? What is the average inventory? What is the total inventory cost for the month?
- A manufacturer buys cardboard boxes from a supplier. The annual demand is 40,000 boxes and is uniformly distributed. The boxes cost $5 each. The estimated order cost is $10, and the carrying cost rate is 20% per year. What is the EOQ and what is the annual order and carrying cost? How many times a year are orders placed, and what is the average time, in weeks, between orders? Using the answer from (b), if you round the average time between orders to the nearest week, what should the order quantity be? Would you recommend using this order quantity and time interval? Suppose that the actual demand turns out to be 80,000 boxes instead of 40,000 boxes.If you had used the EOQ from the (a), what would be the annual order and carrying cost be?Piping Manufacturing assembles television sets. The company purchases 3,600 television kits per year, at a cost of $65 per unit. The ordering cost is $31 and annual inventory costs represent 20% of the purchasing cost. What is the Economic Order Quantity? What is the total annual cost? Hold-it Inc. produces reusable shopping bags. Demand is 20,000 bags per day, 5 days per week, 50 weeks per year. Production is 50,000 per day. The setup cost is $200 and the annual holding cost rate is $.55 per bag. Calculate the EPQ, the total cost, the cycle length and optimal production run length.40) PLEASE HELP WITH THIS! Gentle Ben's Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $3 per bottle and Is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order is placed, and holding costs are 20 percent of the purchase price. It takes three weeks for an order to arrive. Weekly demand is 100 bottles (closed two weeks per year) with a standard devlation of 30 bottles. Ben would like to use an inventory system that minimizes inventory cost and will provide a 95 percent service probability. b. At what inventory level should he place an order? Note: Use Excel's NORM.S.IN( function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number.