Economic quantity and time duration of salamis to be ordered. . Introduction: Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

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Answer 1

Question

Chapter 4.5, Problem 15P

a

Summary Introduction

To determine:

Economic quantity and time duration of salamis to be ordered. .

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Number of salamis to be maintained before re-ordering.

Introduction:

Lead time is the time between when order is placed and its production is completed.

c

Summary Introduction

To determine:

Annual profit of salamis when sold at $3.

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

d

Summary Introduction

To determine:

Profitability of selling salamis when shelf life is 4 weeks

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

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David's Delicatessen flies in Hebrew National salamis regularly to satisfy a growing demand for the salamis in Silicon Valley. The owner, David Gold, estimates that the demand for the salamis is pretty steady at 175 per month. The salamis cost Gold $1.85 each. The fixed cost of calling his brother in New York and having the salamis flown in is $200. It takes three weeks to receive an order. Gold's accountant, Irving Wu, recommendsan annual cost of capital of 22 percent, a cost of shelf space of 3 percent of the value of the item, and a cost of 2 percent of the value for taxes and insurance. How many salamis should Gold have on hand when he phones his brother to send another shipment?

David’s Delicatessen flies in Hebrew National salamis regularly to satisfy a growing demand for the salamis in Silicon Valley. The owner, David Gold, estimates that the demand for the salamis is pretty steady at 175 per month. The salamis cost Gold $1.85 each. The fixed cost of calling his brother in New York and having the salamis flown in is $200. It takes three weeks to receive an order. Gold’s accountant, Irving Wu, recommends an annual cost of capital of 22 percent, a cost of shelf space of 3 percent of the value of the item, and a cost of 2 percent of the value for taxes and insurance.a. How many salamis should Gold have flown in and how often should he order them?b. How many salamis should Gold have on hand when he phones his brother to send another shipment?c. Suppose that the salamis sell for $3 each. Are these salamis a profitable item for Gold? If so, what annual profit can he expect to realize from this item? (Assume that he operates the system optimally.)d. If the salamis…

The company uses cooking oil in its business. The usage of cooking oil is normally distributed with an average of 30 gallons per week and a standard deviation of four gallons per week. The manager asked you to help him decide how to reorder cooking oil in order to achieve a service level of 97.5 percent . Lead time is nine days. a) If cooking oil can be ordered as needed, what reorder point should be used? Answer in 2 decimal places.b) If a fixed interval of 20 days is specified, how much safety stock should the company carry. Answer in 2 decimal places.

Answer 2

Question

Chapter 4.5, Problem 15P

a

Summary Introduction

To determine:

Economic quantity and time duration of salamis to be ordered. .

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Number of salamis to be maintained before re-ordering.

Introduction:

Lead time is the time between when order is placed and its production is completed.

c

Summary Introduction

To determine:

Annual profit of salamis when sold at $3.

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

d

Summary Introduction

To determine:

Profitability of selling salamis when shelf life is 4 weeks

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

Expert Solution & Answer

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Answer 3

Question

Chapter 4.5, Problem 15P

a

Summary Introduction

To determine:

Economic quantity and time duration of salamis to be ordered. .

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Number of salamis to be maintained before re-ordering.

Introduction:

Lead time is the time between when order is placed and its production is completed.

c

Summary Introduction

To determine:

Annual profit of salamis when sold at $3.

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

d

Summary Introduction

To determine:

Profitability of selling salamis when shelf life is 4 weeks

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 4.5, Problem 15P

a

Summary Introduction

To determine:

Economic quantity and time duration of salamis to be ordered. .

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Number of salamis to be maintained before re-ordering.

Introduction:

Lead time is the time between when order is placed and its production is completed.

c

Summary Introduction

To determine:

Annual profit of salamis when sold at $3.

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

d

Summary Introduction

To determine:

Profitability of selling salamis when shelf life is 4 weeks

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 4.5, Problem 15P

a

Summary Introduction

To determine:

Economic quantity and time duration of salamis to be ordered. .

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Number of salamis to be maintained before re-ordering.

Introduction:

Lead time is the time between when order is placed and its production is completed.

c

Summary Introduction

To determine:

Annual profit of salamis when sold at $3.

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

d

Summary Introduction

To determine:

Profitability of selling salamis when shelf life is 4 weeks

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

Answer 6

Chapter 4.5, Problem 15P

a

Summary Introduction

To determine:

Economic quantity and time duration of salamis to be ordered. .

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Answer 7

Chapter 4.5, Problem 15P

a

Summary Introduction

To determine:

Economic quantity and time duration of salamis to be ordered. .

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Answer 8

b

Summary Introduction

To determine:

Number of salamis to be maintained before re-ordering.

Introduction:

Lead time is the time between when order is placed and its production is completed.

Answer 9

b

Summary Introduction

To determine:

Number of salamis to be maintained before re-ordering.

Introduction:

Lead time is the time between when order is placed and its production is completed.

Answer 10

c

Summary Introduction

To determine:

Annual profit of salamis when sold at $3.

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

Answer 11

c

Summary Introduction

To determine:

Annual profit of salamis when sold at $3.

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

Answer 12

d

Summary Introduction

To determine:

Profitability of selling salamis when shelf life is 4 weeks

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

Answer 13

d

Summary Introduction

To determine:

Profitability of selling salamis when shelf life is 4 weeks

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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

Economic quantity and time duration of salamis to be ordered. . Introduction: Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Solution Summary: The author explains how to determine the economic quantity and time duration of salamis to be ordered.

Concept explainers

Videos

To determine:

Economic quantity and time duration of salamis to be ordered. .

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

To determine:

Number of salamis to be maintained before re-ordering.

Introduction:

Lead time is the time between when order is placed and its production is completed.

To determine:

Annual profit of salamis when sold at $3.

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

To determine:

Profitability of selling salamis when shelf life is 4 weeks

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

Want to see the full answer?

Chapter 4 Solutions

Economic quantity and time duration of salamis to be ordered. . Introduction: Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Solution Summary: The author explains how to determine the economic quantity and time duration of salamis to be ordered.

Concept explainers

Videos

To determine: Economic quantity and time duration of salamis to be ordered. . Introduction: Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

To determine: Number of salamis to be maintained before re-ordering. Introduction: Lead time is the time between when order is placed and its production is completed.

To determine: Annual profit of salamis when sold at $3. Introduction: Profit is the net difference between total revenue and total cost at a particular point of time.

To determine: Profitability of selling salamis when shelf life is 4 weeks Introduction: Profit is the net difference between total revenue and total cost at a particular point of time.

Want to see the full answer?

Chapter 4 Solutions

To determine:

Economic quantity and time duration of salamis to be ordered. .

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

To determine:

Number of salamis to be maintained before re-ordering.

Introduction:

Lead time is the time between when order is placed and its production is completed.

To determine:

Annual profit of salamis when sold at $3.

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.

To determine:

Profitability of selling salamis when shelf life is 4 weeks

Introduction:

Profit is the net difference between total revenue and total cost at a particular point of time.