The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders. Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

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Answer 1

Question

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

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Students have asked these similar questions

The Ambrosia Bakery makes cakes for freezing and subse-quent sale. The bakery, which operates five days a week, 52 weeks a year, can produce cakes at the rate of 116 cakesper day. The bakery sets up the cake-production operationand produces until a predetermined number (Q) have beenproduced. When not producing cakes, the bakery uses itspersonnel and facilities for producing other bakery items.The setup cost for a production run of cakes is $700. Thecost of holding frozen cakes in storage is $9 per cake per year. The annual demand for frozen cakes, which is con-stant over time, is 6000 cakes. Determine the following: a. Optimal production run quantity (Q)b. Total annual inventory costsc. Optimal number of production runs per yeard. Optimal cycle time (time between run starts)e. Run length in working days

The president of Value Filters became very enthusiastic about using EOQs to plan the sizes of her production runs, and instituted lot sizing based on EOQ values before she could properly estimate costs. For one particular filter line, which had an annual demand of 1,800 units per year and which was valued at $2.40 per unit, she assumed a holding cost based on a 30 percent annual interest rate and a setup cost of $100. Some time later, after the cost accounting department had time to perform an analysis, it found that the appropriate value of the interest rate was closer to 20 percent and the setup cost was about $40. What was the additional average annual cost of holding and setup incurred from the use of the wrong costs?

Wegmans Bakery produces cheesecake for sale. The bakery which operates 5 days per week and 52 weeks per year can produce cake at the rate of 40 cakes per day. The bakery sets up cake production operation and produces the predetermined quantity Q has been produced. The setup cost for a production run of cheesecake is $200. The holding cost is $10 per year. The annual demand for cheesecake is constant during the year and is equal to 3900. Determine the following Round answers to the nearest whole number. (a) the optimal production run quantity (Q). (b) the total annual inventory cost (AHC + AOC) (c) the optimal number of production runs per year. (d) The run length (production run time)

Answer 2

Question

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

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Answer 3

Question

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

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Answer 4

Question

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

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Answer 5

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 6

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 7

Chapter 4, Problem 39AP

(a)

Summary Introduction

To determine: The optimal number of oil filters that should be purchased, and the optimal time between the placement of orders.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 8

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 9

(b)

Summary Introduction

To determine: at the time a reorder should be placed;the level of on-hand inventory.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 10

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 11

(c)

Summary Introduction

To determine: The annual cost of holding and order setup for oil filters, if Mr. M uses an optimal inventory control policy for this item.

Introduction: Economic order quantity sometimes EOQ refers to the technique used by the organizations to determine the volume and frequency or order needed to fulfill the customer demand while minimizing the cost of the item.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4.4 - Prob. 1P Ch. 4.4 - Prob. 2P Ch. 4.4 - Prob. 3P Ch. 4.4 - Prob. 4P Ch. 4.4 - Prob. 5P Ch. 4.4 - Prob. 6P Ch. 4.4 - Prob. 7P Ch. 4.4 - Prob. 8P Ch. 4.4 - Prob. 9P Ch. 4.5 - Prob. 10P

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