William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H a) The EOQ for the workbooks is (round your response to the nearest whole number). 20,000 units/year $27/order $3/unit/year
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- A service garage uses 204 boxes of cleaning cloths a year. The boxes cost $12 each. The cost to place one order is $15, and the cost to hold one box in inventory for a year is $2.40. Using this information, what is our total holding and ordering cost if we currently order 12 boxes at a time?An auto parts supplier sells batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The suppliers pays $28 for each battery and estimates that the annual holding cost is $8.40 per year. It costs approximately $20 to place an order. Assume a 250-day working year. a. Compute for the EOQ round off your answer to the nearest whole number. b. Compute for the expected number of orders. Round off your answer to the nearest whole number. c. Compute for the expected time between orders. Round off your answer to the nearest whole number.A flower shop uses 230 clay pots a month. The pots are purchased for $2 each. Annual holding cost is estimated to be 25 percent of purchase cost, and ordering cost is $18 per order. The manager has been using an order quantity of 230 flower pots. a. Calculate the EOQ. (Round the final answer to the nearest whole number.) EOQ pots b. Calculate the EOQ's total annual inventory control cost. (Round the final answer to 2 decimal places.) TC $ c. What additional annual inventory control cost is the shop incurring by using the current order quantity? (Round the final answer to 2 decimal places.) Additional cost $
- A supermarket uses a supplier for its bottled water. The annual demand for this product is 24000 units. The supermarket purchases bottled water from its supplier at a price of $0.8 per bottle. The holding cost per of water per year is $0.4. The ordering cost for the supermarket is $80 per order and the lead time is 2 days. The company operates 250 days a year. The supermarket uses Economic Order Quantity model to manage its inventories. What is the recorder point?A local electronic repair shop uses 15,000 units of mobile batteries each year. It costs RO 30 to place and receive an order. It cost of material is RO 15 per unit and carrying cost is 24% of the cost per unit. Calculate the Economic Order Quantity for the shop, number of orders and total inventory costs.Assume that Medina Co. makes footballs and is trying to determine the quantity of leather it should order every time an order is placed. The relevant information is as follows:a. over the course of a year 12,000 square meters of leather will be needed,b. the cost of storing 1 square meter of leather is $3 andc. the cost of placing an order is $450. What is the Economic Order Quantity?
- NTJ Distributors Ltd has has an annual demand for an airport metal detector of 1400 units. The cost of a typical detector is $400. Carrying cost is estimated to be 20% of the unit cost and the ordering cost is $25 per order. If Tricia Joseph, the owner, orders in quantities of 300, he can get a 4% discount on the cost of the detectors. Should the company accept the discount?A hardware store sells paint that has a demand of 9,706 gallons per year. The store purchases the paint from a supplier for 11.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 175 dollars per order. The paint supplier has a lead time of 10 days. What is the annual ordering cost if the store uses the order quantity of 2,103 gallons per order? Assume EOQ model is appropriate. Use at least 4 decimal places.A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $52 per unit (100 bottles), including fixed costs of $10 per unit. A proposal is offered to purchase small bottles from an outside source for $31 per unit, plus $3 per unit for freight. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Enter unit costs as positive values. Use a minus sign to indicate negative Differential Effects. Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) January 25 Make Bottles (Alternative 1) Buy Bottles (Alternative 2)…
- 3. PHL assembles security monitors. It purchases 900 black-and-white cathode ray tubes per month at $80 each. Ordering costs are $120, and annual carrying costs are $20 per unit. - a) Determine the economic order quantity (2 points) - b) Find number of orders per year (1 point) - c) If the supplier offer a price of $79.5 per tube for ordering 1200 tubes in a lot, would you evaluate and advise PHL to take advantage of the offer? (2 points)Machine Operator, manufacturer of shelving keeps stock of a wide range of components. The following data, you have established that: The cost to hold one unit for one year is $1.60. The cost of placing an order is $70.00. Lead Time: The supplier takes from one to two weeks to deliver goods ordered. Maximum 2 Weeks Minimum 1 Week The annual demand is 50,000 units Maximum usage5,000 usage Minimum usage 2,000 units Required: (a) On the basis of the above information, calculate for component B: (i) The minimum stock level (ii) The reorder level (iii) The EOQ (iv) The maximum stock levelAn auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery’s value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. What is the economic order quantity?