Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 12, Problem 4PA
a)
Summary Introduction
To determine: The average inventory.
b)
Summary Introduction
To determine: The number of orders placed each year.
c)
Summary Introduction
To determine: The kg that must be ordered in each order to minimize the sum of ordering and holding costs.
d)
Summary Introduction
To determine: The annual ordering and annual holding costs.
e)
Summary Introduction
To determine: The annual ordering and annual holding costs.
f)
Summary Introduction
To determine: The sum of annual ordering and holding costs.
g)
Summary Introduction
To determine: The sum of annual ordering and holding costs while accepting the discount.
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Students have asked these similar questions
Joe needs to purchase malt for his micro-brew production, His supplier charges $35 per delivery (no matter how much is delivered) and $1.20 per gallon of malt. Joe's annual holding cost per unit is 35% of the cost value of the unit. Joe uses 5000 gallons of malt per week. Assume that Joe operates 50 weeks per year, how many gallons d whole number) should Joe arder from his supplier with each order?
6455
7072
None of the chose
130
100
913
78
Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier
charges $0.50 per kg of milk plus a $15 delivery fee (the $15 fee is independent of the amount ordered). Bruno's holding cost is $0.04
per kg per month. He needs 9,000 kg of milk per month.
a. Suppose Bruno orders 9750 kg each time. What is his average inventory (in kg)?
kgs
(Round your answer to 1 decimal place.)
Suppose Bruno orders 6250 kg each time. How many orders does he place with
b.
orders
his supplier each year?
How many kg should Bruno order from his supplier with each order to minimize
с.
kgs
the sum of the ordering and holding costs?
If Bruno's storage vessel can hold only 3500 kg of milk, what would be Bruno's
d.
annual ordering and holding costs?
If Bruno's storage vessel can hold only 6500 kg of milk, what would be Bruno's
e.
annual ordering and holding costs?
Bruno's supplier's truck can carry 20,000 kg of milk. The supplier does not…
The owner and manager of a hardware store reevaluates his inventory policy for hammers. sells an average of 50 hammers a month, so you have placed purchase orders for 50 hammers with a distributor at a cost of $20 each at the end of each month. But the owner does not place all the store orders and find that this takes much of your time. He estimates that the value of his time spent ordering hammers is $75.
a) What must be the unit cost of maintaining hammers for the current policy of the hardware store to be Optimal according to the EOQ model?
b) If the distributor delivers an order for hammers in 5 business days (out of an average of 25 per month), what should be the reorder point, according to the EOQ model?
Chapter 12 Solutions
Operations Management
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