Additional Question. The XYZ steel company must determine a policy for ordering coalto operate 15 converters. The ordering cost is $85/order and the cost of holding coal is15% of the purchasing cost. The XYZ has a contract to obtain the coal for $14 per ton forthe coming year. Each converter requires exactly 8 tons of coal per day to operate, andthe firm operates 300 days per year.a. Determine the optimal quantity of coal to receive in each order.b. Determine the total inventory-related cost associated with the optimalordering policyc. Optimal number of orders to place per year and number of operating daysbetween orders, based on the optimal ordering.d. The XYZ is now considering to the following discount policy provided bysupplier:Order Quantity (tons)1,000 - 1,999Price per ton$14$12$102,000 - 2,9993000+Please help the XYZ to determine the amount the firm should order.

Note: - As we can answer only up to three subparts we will answer the first three subparts here. If…

Answered: Additional Question. The XYZ steel…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question Two: A store has an annual demand of 2,500. The cost to place an order to replenish inventory is $18.75 per order, and annual inventory holding cost per unit is $1.5 What is the optimal order size? What is the annual total cost?
Question 1 The Jelly Bean operation holds an inventory of food colouring which used to colour the jelly beans. The jelly bean operation is interested in calculating the optimal ordering strategy for food colouring. Suppose the annual forecast for the necessary food colouring during a normal year of operation is 13491 litres per year. Furthermore, suppose the holding cost per litre of paint is $11.4 and every time the jelly bean operation issues an order to their supplier, a charge of $451 is added to the invoice as an ordering cost. The supplier charges $5.63 per litre of food colouring. Using the Economic Order Quantity formula, what is the optimal order size that minimises total cost (in Litres of food colouring per order)? a. 1265 litres b. 736 litres c. 1067446 litres d. 26 litres e. 1033 litres Question 2 Using the Economic Order Quantity formula and the data provided above, how many orders will have to be made in a single year? The choices below are all rounded to the nearest…
Question 2. A convenience store, Shop Around the Corner, sells 5000 cans of peas every year. Shop Around the Corner owns his own trucks, each of which has capacity of carrying 100 cans. Utilizing each truck costs $100. There is also $50 fixed replenishment cost and $1 per unit per year inventory holding cost. a) Calculate the optimal order quantity of Shop Around the Corner at each replenishment? b) If Shop Around the Corner has a storage capacity of 680 cans, how would the optimal order quantity change?
Question 29 Which one of the following methods will be most suitable for managing dependent demand? Q-model ABC Analysis P-model The single-period model Material Requirements Planning
QUESTION 5 Peet's Coffees in Menlo Park, California, sells Melitta Number 101 coffee filters at a fairly steady rate of about 70 boxes of filters monthly. The filters are ordered from a supplier in Trenton, New Jersey. Peet's manager is interested in applying some inventory theory to determine the best replenishment strategy for the filters. Peet's pays $2.80 per box of filters and estimates that fixed costs of employee time for placing and receiving orders amount to about $20. Peet's uses a 22 percent annual interest rate to compute holding costs. How large a standing order should Peet's have with its supplier in Trenton, and how often should these orders be placed? EOQ= 216.22 Cycle=3 in years
Question 4 Illustrate Guardian pharmacy’s reorder system to manage their inventory so meet customer expectation. answer guidelines To use order point system and periodic review system. Illustrate its characteristics/advantage in the context of managing inventory in a pharmacy. For example: 1. Order point system - When the quantity of an item on hand in inventory falls to a predetermined level, an order is placed. • The quantity ordered is based on economic order quantity (EOQ). • Order quantity are usually fixed. • The order point is determined by the average demand during the lead time. • If the average demand or the lead time changes, there is no corresponding change in the order point, effectively there is a change in the safety stock. • The interval between replenishment are not constant but vary depending on the actual demand during the order cycle. Usually used for stocks that are longer to sell from the store so to…
Question 2: Metro Tech buys three components from a local wholesaler. The annual demand for components A, B, and C is 500, 3000, and 6000 units respectively. The agreed purchase price is $20, $15, and $10per unit for A, B, and C respectively for each product. The holding cost is estimated to be 20% per year. The ordering cost consists of handling and trucking costs. The handling cost is $100 for each type of component regardless of the number of items ordered. In addition to the handling cost, Metro Tech must pay a trucking cost of $500 for each delivery regardless of the total number of components in the order. Currently, all three items are being ordered independently using EOQ models. A proposal has been made to combine the ordering of the three items to save on trucking costs. Analyze the current and the prosed scenario and show the results below. Input Data: Demand items/year Item Cost in $/item Holding Cost as %/year Ordering Cost $/order # of Orders/ year Economic Order Quantity…
Question 7 Firm develop new products to a.gain market share and build brand equity b.keep their research and development teams gainfully employed c.take up slack in capacity d.gain first mover advantage and eliminate waste Question 8 Economic order quantity (EOQ) assumes all of the following conditions apply .demand is known and is constant over time .there are no shortages allowed.lead time for the receipt of orders is constant.Order quantity is received all at once true or false? question 10 Trade-offs in the new product development relate to A.Product / service design, time to market and profitability B.Proft. Expenditure and market share C.Time. cost and quality D.Market reach, product / service design and timing
Problem 12-3 (Static) A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual carrying costs are $75 per bag. a. Determine the economic order quantity. (Round your final answer to the nearest whole number.) Economic order quantity b. What is the average number of bags on hand? (Round your final answer to the nearest whole number.) Average number of bags c. How many orders per year will there be? (Round your final answer to the nearest whole number.) Number of orders per year bags d. Compute the total cost of ordering and carrying flour. (Round your final answer to the nearest whole number.) Total cost e. If annual holding costs were to increase by $9 per bag, how much would that affect the minimum total annual cost? (Round your Intermediate calculations to 2 decimal places and final answer to 2 decimal places.) Increase by
QUESTION 1:A confectioner buys plastic boxes in bulk and uses them to pack chocolates. The annual requirement of these boxes is 1,200, and each box costs $30. The ordering and carrying costs are $10 per order and 20%, respectively. The supplier from whom the confectioner purchases these boxes sells them only in lots of 25, that is, you only purchase quantities in multiples of 25 boxes.(a) How many boxes should the confectioner order so as to minimise inventory total stocking costs?(b) If the supplier offers 2% discount on the cost of each box when the purchases are in quantities of 300 at a time, should the confectioner accept this offer?(c) Suppose the supplier has decided that instead of the 2% discount offer the following price breaks will be used:ORDER QUANTITY COST PER BOXLess than 100 $30.00100 to 199 $29.75200 or more $29.60What order quantity should the confectioner make?
Question 26 Store A orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. What will be the effect on Store A's average on-hand inventory if lead time decreases from six weeks to three weeks? Group of answer choices It will increase It will decrease It will remain the same It will double
Subject: Logistic management Q): Calculate EOQ where as Annual demand is 2543570 units Ordering cost per order is 78, Inventory carrying cost per unit is 167

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