Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 4, Problem 40AP
Summary Introduction
To determine: The optimal order for the given six items, so that the storage space is never exceeded.
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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Catlea Merchandising is engaged in selling school shoesfor both boys and girls in their teenage years. Catlea needs 32,000 pairs of shoes in a year in order to satisfy the market demand. It costs ₱ 48 to place an order while ₱ 8 is needed to hold each quantity of shoe in Catlea's inventory. Upon checking on Catlea's supplier, it takes 8 days in between placing an order and eventually receiving it.
a. Determine the Economic Order Quantityb. Determine the number of order per monthc. Determine the reorder point
A car rental agency uses 96 boxes of staples a The boxes cost $4 each. It costs $10 to order staples, and carrying costs are $0.80 per box on an annual basis.
Determine:
the order quantity that will minimize the sum of ordering and holding boxes of staples
the annual cost of ordering and carrying the boxes of staples
The Cove at UP recently hired Ray Bones as the new inventory replenishment manager. Ray is a recent Accounting graduate from the University of Portland and learned all about managing inventory in BUS 457.
Ray needs to determine the length-of the build up and sell thru periods associated with an optimal ordering policy for an item with constant annual demand of 2200 units, unit cost $3790.5, annual unit holding cost percentage 0.28, and aggregate order placement cost $425 for an item with a production rate of 3820 (units/year).
What are the cost minimizing order quantity and build up and sell thru periods?
(specify answer as a whole number)
(specify answer to 3 decimal places).
(specify answer to 3 decimal places).
Chapter 4 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 4.4 - Prob. 1PCh. 4.4 - Prob. 2PCh. 4.4 - Prob. 3PCh. 4.4 - Prob. 4PCh. 4.4 - Prob. 5PCh. 4.4 - Prob. 6PCh. 4.4 - Prob. 7PCh. 4.4 - Prob. 8PCh. 4.4 - Prob. 9PCh. 4.5 - Prob. 10P
Ch. 4.5 - Prob. 11PCh. 4.5 - Prob. 12PCh. 4.5 - Prob. 13PCh. 4.5 - Prob. 14PCh. 4.5 - Prob. 15PCh. 4.5 - Prob. 16PCh. 4.6 - Prob. 17PCh. 4.6 - Prob. 18PCh. 4.6 - Prob. 19PCh. 4.6 - Prob. 20PCh. 4.7 - Prob. 21PCh. 4.7 - Prob. 22PCh. 4.7 - Prob. 23PCh. 4.7 - Prob. 24PCh. 4.7 - Prob. 25PCh. 4.8 - Prob. 26PCh. 4.8 - Prob. 27PCh. 4.8 - Prob. 28PCh. 4.9 - Prob. 29PCh. 4.9 - Prob. 30PCh. 4 - Prob. 31APCh. 4 - Prob. 32APCh. 4 - Prob. 33APCh. 4 - Prob. 34APCh. 4 - Prob. 35APCh. 4 - Prob. 36APCh. 4 - Prob. 37APCh. 4 - Prob. 38APCh. 4 - Prob. 39APCh. 4 - Prob. 40APCh. 4 - Prob. 41APCh. 4 - Prob. 42APCh. 4 - Prob. 43APCh. 4 - Prob. 44APCh. 4 - Prob. 45AP
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