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 8.2, Problem 20P
(a)
Summary Introduction
Interpretation:The EOQ and the number of periods of demand are to be calculated.
Concept Introduction:
The optimal order policy is known as economic order quantity (EOQ) which is used to order the different quantities in such way that minimizes the holding cost and ordering cost.
(b)
Summary Introduction
Interpretation: The optimum solution is to be calculated.
Concept Introduction:
The optimal order policy is known as economic order quantity (EOQ) which is used to order the different quantities in such way that minimizes the holding cost and ordering cost.
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Students have asked these similar questions
1. Forrest and Dan make boxes of chocolates for which the demand is uncertain. Forrest says, "That's life." On the other hand, Dan believes that some demand patterns exist that could be useful for planning the purchase of sugar, chocolate, and shrimp. Forrest insists on placing a surprise chocolate-covered shrimp in some boxes so that "You never know what you'll get." Quarterly demand (in boxes of chocolates) for the last three years is shown in the table below:
b. If the expected sales for chocolates are 14,400 cases for year 4, use the multiplicative seasonal method to prepare a forecast for each quarter of the year. (Round all intermediate calculations to two decimal places.)
The first quarter forecast is what? boxes of chocolates. (Enter your response rounded to the nearest whole number.)
[item no. 9] In marginal analysis with discrete distributions for single-period inventory models, the value of ML/(ML+MP) is 0.8. The probability distribution of sales is given by the following by the table below. Find the optimal number of units to order.
Daily demand
80
90
100
110
120
Probability that demand will be at this level
0.10
0.20
0.30
0.30
0.10
a. 90 units
b. 110 units
c. 100 units
d. 80 units
1. Gursoy Manufacturing Company originally estimated its annual demand for item
XYZ as 8000 units per year at a unit cost of $10. The order cost is $30 and the
holding cost per unit is $3 annually. Gursoy has discovered at the end of the year
that annual demand is only 6000 units and holding cost per unit per year are closer
to $4. The only good news is that Gursoy figured orders cost $25 to place instead
of $30 each. Gursoy now wants to know the significance of these mistakes on last
year's decisions.
a) What was the combined effect of these errors on the economic order
quantity for item XYZ?
b) What was the individual effect of each error on item XYZ economic order
quantity?
c) What was the combined effect of these errors on the minimum total variable
cost (fixed order cost and holding cost) of item XYZ for last year?
d) What was the individual effects of each error in demand on the minimum
total variable cost for last year?
Chapter 8 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 8.1 - Prob. 1PCh. 8.1 - Prob. 2PCh. 8.1 - Prob. 3PCh. 8.1 - Prob. 4PCh. 8.1 - Prob. 5PCh. 8.1 - Prob. 6PCh. 8.1 - Prob. 7PCh. 8.1 - Prob. 8PCh. 8.1 - Prob. 9PCh. 8.2 - Prob. 10P
Ch. 8.2 - Prob. 11PCh. 8.2 - Prob. 12PCh. 8.2 - Prob. 13PCh. 8.2 - Prob. 14PCh. 8.2 - Prob. 15PCh. 8.2 - Prob. 16PCh. 8.2 - Prob. 17PCh. 8.2 - Prob. 18PCh. 8.2 - Prob. 19PCh. 8.2 - Prob. 20PCh. 8.2 - Prob. 21PCh. 8.2 - Prob. 22PCh. 8.3 - Prob. 23PCh. 8.3 - Prob. 24PCh. 8.3 - Prob. 25PCh. 8.4 - Prob. 26PCh. 8.4 - Prob. 27PCh. 8.4 - Prob. 28PCh. 8.4 - Prob. 29PCh. 8.5 - Prob. 30PCh. 8.5 - Prob. 31PCh. 8.5 - Prob. 32PCh. 8.5 - Prob. 33PCh. 8.5 - Prob. 34PCh. 8.6 - Prob. 35PCh. 8.6 - Prob. 36PCh. 8.6 - Prob. 37PCh. 8.6 - Prob. 38PCh. 8.6 - Prob. 39PCh. 8.6 - Prob. 40PCh. 8 - Prob. 41APCh. 8 - Prob. 42APCh. 8 - Prob. 43APCh. 8 - Prob. 44APCh. 8 - Prob. 45APCh. 8 - Prob. 46APCh. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51AP
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