William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics:a) The EOQ for the workbooks is (round your response to the nearest whole number).b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number).c) What are the annual ordering costs? $ (round your response to the nearest whole number).Demand DOrdering cost SHolding cost H19,300 units/year$24/order$4/unit/year

Corporate businesses have the most economical order amount of raw materials which is known as the…

Answered: William Beville's computer training…

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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P inventory systems require continuous review of inventory levels. True False
The two-bin approach is used to control inventory for a particular low-cost component. Each bin holds 1000 units. The annual usage of the component is 40,000 units. Cost to order the component is around $50. (a) What is the imputed holding cost per unit for this data? (b) If the actual annual holding cost per unit is only 5 cents, what lot size should be ordered? (c) How much more is the current two-bin approach costing the company annually, compared to the economic order quantity?
Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is $30. The cost of holding one unit of inventory for one year is $15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Compute the economic order quantity. Economic order quantity = 1600 Compute the ordering, carrying, and total costs for the EOQ. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
A company has a chance to reduce their inventory ordering costs by placing larger quantity orders using the discount schedule below. What should their optimal order quantity be if this company purchases this single inventory item with an e-mail ordering cost of $4, an annual holding cost rate (per unit) of 2% of the price/unit, and an annual demand of 10,000 units? Order quantity (units) Price/unit ($) 0 to 2,499 1.20 2,500 to 3,999 1.00 4,000 or more 0.98
When an firm put aside some extra inventory that serves as an insurance against flucation in demand is called Wastage Inventory O Minimum Level Safety Stock EOQ
In the basic EOQ model, if annual demand doubles, the EOQ will O a. increase by about 41.42 percent O b. decrease by 48.42% O c. double O d. None of these O e. be about 70.7 percent of its previous amount
K William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 19,400 units/year Ordering cost S $27/order Holding cost H $5/unit/year a) The EOQ for the workbooks is 458 (round your response to the nearest whole number) b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number).
Abey Kuruvilla, of Parkside Plumbing, uses 1,230 of a certain spare part that costs $24 for each order, with an annual holding cost of $25. Part 2 a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). Order Size Total Cost ($) 25 enter your response here 40 enter your response here 50 enter your response here 60 enter your response here 100 enter your response here b) What is the economic order quantity? units (round your response to two decimal places).
← William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 19,400 units/year Ordering cost S $27/order Holding cost H $5/unit/year a) The EOQ for the workbooks is 458 (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ 1145 (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number).
Sunrise Garden Center buys 425 bags of fertilizer per month for feeding and weeding lawns. The ordering cost is $15.00. Holding cost is $0.10 per bag per year. a. How many bags should Sunrise order at a time? Sunrise should order bags at a time. (Enter your response rounded to the nearest whole number.) b. What is the time between orders? The time between orders is months. (Enter your response rounded to one decimal place.)
Which inventory system is less likely to order a fixed order quantity? Select one: O a. Continuous O b. Perpetual O c. Periodic O d. Two bin
Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas’s fastest-moving inventory item has a demand of 6,000 units a year. The purchasing cost of each unit is $16 (additional 5% discount applies if at lease 150 units ordered a time), and the inventory carrying cost is $3 per unit per year. The average ordering cost is $10 per order. It takes about 3 working days for an order to arrive. (This is a corporate operation, and there are 300 working days per year.) Answer the following questions, Q1~Q5. Note that you must include Excel formulas/calculations showing how you arrive at the answer. Q1: Assume that the demand is consistent throughout the year. What is the ROP? Note that stockouts and unnecessary inventory holding should be avoided at any times. Q2: Assume that the demand is consistent throughout the year. Based on the EOQ model, to minimize the costs of purchasing, ordering and inventory holding…

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