c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? The optimal order quantity is with a total cost of $ (round your responses to the nearest whole number).
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please answer part c. thank you
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- 04/30/2 Problem #1 - Jasper Inc., a company that sells air conditioning units for cars intends to reduce its total annual inventory cost. The annual demand is expected to be 6,000 units if market conditions are unfavorable, and 9,000 units if market conditions are favorable. The Purchasing & Warehousing Manager estimates that the ordering cost is $20.00 per order and the holding cost is $2.00 per unit per year. a. - Calculate the Economic Order Quantity (EOQ), Annual Ordering Cost, Annual Holding Cost and Total Annuarinventory Cost under unfavorable and favorable market conditions. b. - The Purchasing & Warehousing Manager identified two improvement projects in conjunction with her team: Project A: Reduction of ordering cost to $18.00. Project B: Reduction of holding cost to $1.40 per unit per year. Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Which of the projects would you recommend and why? Show all your calculations.M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 725 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $55, and annual holding cost per unit is $4. O Allen Mfg. Quantity 1-499 500-999 1000+ Unit Price $16.00 15.50 15.00 Baker Mfg. Quantity 1-399 400-799 800+ Unit Price $16.10 15.60 15.10 a) What is the economic order quantity if price is not a consideration? 489 units (round your response to the nearest whole number). b) Which supplier, based on all options with regard to discounts, should be used? Allen Mfg. c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? The optimal order quantity is 1000 with a total cost of $ (round your responses to the nearest whole number).M. P. VanOyen Manufacturing has gone out on bid fora regulator component. Expected demand is 700 units per month.The item can be purchased from either Allen Manufacturing orBaker Manufacturing. Their price lists are shown in the table.Ordering cost is $50, and annual holding cost per unit is $5.ALLEN MFG. BAKER MFG.QUANTITY UNIT PRICE QUANTITY UNIT PRICE1–499 $16.00 1–399 $16.10500–999 15.50 400–799 15.601,0001 15.00 8001 15.10a) What is the economic order quantity?b) Which supplier should be used? Why?c) What is the optimal order quantity and total annual cost ofordering, purchasing, and holding the component? PX
- M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 675 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $55, and annual holding cost per unit is $4. 2 Allen Mfg. Quantity 1-499 500-999 1000+ a) What is the economic order quantity if price is not a consideration? Baker Mfg. Unit Price $16.00 15.50 15.00 Unit Price $16.10 15.60 15.10 units (round your response to the nearest whole number). Quantity 1-399 400-799 800+Given an ordering cost of $200, a holding cost of $2 perunit, and a negligible lead time, examine the following de-mand patterns and predict which lot sizing technique wouldresult in the lowest total cost. Verify your predictions Period 1 2 3 4 Gross Requirements 50 50 10 1004/30122 Problem #1 - Jasper Inc., a company that sells air conditioning units for cars intends to reduce its total annual inventory cost. The annual demand is expected to be 6,000 units if market conditions are unfavorable, and 9,000 units if market conditions are favorable. The Purchasing & Warehousing Manager estimates that the ordering cost is $20.00 per order and the holding cost is $2.00 per unit per year. a. Calculate the Economic Order Quantity (EOQ), Annual Ordering Cost, Annual Holding Cost and Total Annual Inventory Cost under unfavorable and favorable market conditions. b. The Purchasing & Warehousing Manager identified two improvement projects in conjunction with h team: Project A: Reduction of ordering cost to $18.00. Project B: Reduction of holding cost to $1.40 per unit per year. Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Which of the projects would you recommend and why? Show all your calculations.
- M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 700 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $45, and annual holding cost per unit is $4. Allen Mfg. Quantity 1-499 500-999 1000+ Baker Mfg. Unit Price $16.00 15.50 15.00 Quantity 1-399 400-799 800+ Unit Price $16.10 15.60 15.10 a) What is the economic order quantity if price is not a consideration? 435 units (round your response to the nearest whole number). b) Which supplier, based on all options with regard to discounts, should be used? Allen Mfg. c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? (round your responses to the nearest whole number). The optimal order quantity is ☐ with a total cost of $1. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the EOQ. 2. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the total carrying cost. 3. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the total ordering cost. 4. Maxmin Trading Company buys 1,000 pcs of chair per month. The cost per chair is Php500 and ordering cost is Php400. The inventory carrying cost is estimated at 10% of the price of the chair. Determine the number of orders required per year. 5. Minmax Processing Company has an average requirement of 5 boxes of…Metal Gear solid Company needs 2679 metal desks per year. Fixed delivery charges and costs of receiving is about $4000 per shipment. Every desk costs $800. The firm uses a 18.25% interest rate. a. Find the annual demand. 1 b. Find the total holding cost c. Find the EOQ. с.
- uỹ this policy? 2. Question 14 on page 217 14. A local machine shop buys hex nuts and molly screws from the same supplier. The hex nuts cost 15 cents each and the molly screws cost 38 cents each. A setup cost of $100 is assumed for all orders. This includes the cost of tracking and receiving the orders. Holding costs are based on a 25 percent annual interest rate. The shop uses an average of 20,000 hex nuts and 14,000 molly screws annually. a. Determine the optimal size of the orders of hex nuts and molly screws, and the optimal time between placement of orders of these two items. b. If both items are ordered and received simultaneously, the setup cost of $100 applies to the combined order. Compare the average annual cost of holding and setup if these items are ordered separately; if they are both ordered when the hex nuts would normally be ordered; and if they are both ordered when the molly screws would normally be ordered. 99+ W T DOLLM. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 675 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $45, and annual holding cost per unit is $5. Allen Mfg. Quantity 1-499 500-999 1000+ Unit Price $16.00 15.50 15.00 Baker Mfg. Quantity 1-399 400-799 800+ a) What is the economic order quantity if price is not a consideration? whole number). Unit Price $16.10 15.60 15.10 units (round your response to the nearest9. A company stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. This company estimates its anDual holding cost for this item to be $25 per unit. The cost to place an order from the supplier is $75. (13 Points) a) Find the economic order quantity (EOQ). b) Find the anmual holding costs. c) The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. What is the reorder point?