A company uses Component M at the rate of 2,900 per week. The time between placing an order and receiving the components is five weeks. The reorder quantity is 15,000 units. Required:- Calculate the reorder level.?
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A company uses Component M at the rate of 2,900 per week. The time
between placing an order and receiving the components is five weeks.
The reorder quantity is 15,000 units.
Required:-
Calculate the reorder level.?
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Solved in 3 steps
- A manufacturing company placed an order of 24,000 units semiannually at a price of $20 per unit. Its carryng cost is 15% and the order cost is $12 per order. Required: (i). What is the most economical order quantity? (ii). How many orders need to be placed?A manual assembly line is being designed for a product with annual demand = 100,000 units. The line will operate 50 wks/year, 5 shifts/wk, and 7.5 hr/shift. Work units will be attached to a continuously moving conveyor. Work content time = 42.0 min. Assume line efficiency E = 0.97, balancing efficiency Eb = 0.92, and repositioning time Tr = 6 sec. Determine: (a) hourly production rate to meet demand, (b) number of workers required.Corazon Manufacturing Company has a purchasing department staffed by five purchasingagents. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. Lastyear, 17,800 purchase orders were processed by the five agents.Required:1. Calculate the activity rate per purchase order.2. Calculate, in terms of purchase orders, the:a. total activity availabilityb. unused capacity3. Calculate the dollar cost of:a. total activity availabilityb. unused capacity4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for $14,000? How many pur-chase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
- Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,300 units. Southeastern estimates its annual holding cost for this item to be $23 per unit. The cost to place and process an order from the supplier is $74. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. a) What is the economic order quantity? units (round your response to the nearest whole number).MCE Craig, Inc., has provided the following information for one of its products for each hour of production: Actual velocity: 200 units (per hour) Move time: 11 minutes Inspection time: 12 minutes Rework time: 12 minutes 1. MCE is 0.42 2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times. If required, round your answers to two decimal places. Theoretical cycle time fill in the blank minutes Actual cycle time 0.3 minutes MCE fill in the blankA manufacturer has a production facility that requires 14,979 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 14 days. The unit purchase cost is $27 per unit. The cost to place and process an order from the supplier is $172 per order. The unit inventory carrying cost per year is 17 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. What is the optimal length of inventory cycle in days? Use at least 4 decimal places.
- Suppose a company has 1,000 units of a raw material part on hand. If 750 of these units are routed into production, should the company place an order to stock up on more of these parts? (Show calculations). Determine the economic order quantity (EOQ) for this part, assuming the following:The company plans to use 10,000 units during the coming year.The company orders this part in lots of 1,000 units, and each order placed carries a processing cost of $2.50.Each unit of inventory carries an annual holding cost of $6.40.A manufacturer has a production facility that requires 19,111 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 6 days. The unit purchase cost is $12.8 per unit. The cost to place and process an order from the supplier is $113 per order. The unit inventory carrying cost per year is 20 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. What is the optimal total annual inventory and purchase cost for the manufacturer? Use at least 4 decimal places.A manufacturer has a production facility that requires 17,544 units of component JY21 per year. Following a long-term contract, the manufacturer purchases component JY21 from a supplier with a lead time of 5 days. The unit purchase cost is $14.4 per unit. The cost to place and process an order from the supplier is $181 per order. The unit inventory carrying cost per year is 15.2 percent of the unit purchase cost. The manufacturer operates 250 days a year. Assume EOQ model is appropriate. If the manufacturer uses a constant order quantity of 1,017 units per order, what is the number of orders per year? Use at least 4 decimal places.
- Nash Corporation manufactures and sells custom snowmobiles. From the time an order is placed till the time the snowmobile reaches the customer averages 50 days. This 50 days is spent as follows: Wait time: 10 days Move time: 5 days Process time: 15 days Queue time: 15 days Inspection time: 5 days What is Nash's manufacturing cycle efficiency (MCE) for its snowmobiles?Electric spark Co., uses 60,000 of component Zima. The cost of placing an order is estimated at $17.28 per order. The annual holding cost is 20% of the purchase price of $20 per unit. The following information is provided to you by the management accountant to use in your analysis: The Normal usage 200 units per day Maximum usage 280 units per day Minimum usage 120 units per day Reorder period 20 to 30 days Required: 1. Determine the EOQ using the equation method 2. Calculate the total cost of inventory per year, in case the company decided to use the EOQ. 3. Electric spark has been offered a 2 per cent discount on the cost if it places orders in quantities of 20,000. Discuss whether the company should accept the discount and place larger orders .Prakesh Company has the following data for one of its manufacturing cells: Maximum units produced in a month: 62,500 units Actual units produced in a month: 56,250 units Hours of production labor in one month: 10,000 hours Required: 1. Compute the theoretical cycle time. Round your answer to the nearest whole minute.fill in the blank 1 minutes per unit 2. Compute the actual cycle time. Round your answer to the nearest whole minute.fill in the blank 2 minutes per unit 3. Compute the theoretical velocity. Round your answer to the nearest whole unit.fill in the blank 3 units per hour 4. Compute the actual velocity. Round your answer to the nearest whole unit.fill in the blank 4 units per hour