C. 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 $1.50 per unit per year. Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Provide your recommendations.
Q: Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at…
A: given, annual sales = 56 million next year increase annual sales = 31% turnover 8 times
Q: Corey spent the month of December talking to various suppliers in order to figure out how much all…
A: Manufacturing Costs can be defined as an implies costs for manufacturing a Compound or Product given…
Q: a. How many tires should Rocky Mountains tire order each time it time it places an order? b. What is…
A: Inventory management is the process of managing the inventory right from the procurement of the raw…
Q: 1.Which of the following pertains to an efficient supply chain? A)It deals with innovative products…
A: Option (A) is correct. Option (A) is correct.
Q: Pls help with belwo homework. Describe and explain 3d printing in supply chain and logistics area…
A: The production of a three-dimensional object from a CAD model or a digital 3D model is known as 3D…
Q: Jordan Airline routinely overbooks its flights from Dallas to Florida. Overbooking discounted seats…
A: This problem can be solved using the concepts of newsvendor problem. Cost of overbooking = $2200…
Q: Which of the following best describes the relationship between the iPads and the job fair? Select…
A: In the given scenario, we are given a list of items which will be required for MBA students, MBA…
Q: Company X has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit.…
A: Annual demand = 75 lakhs per year Setup cost = $29 per unit Holding cost = $35 per unit Number of…
Q: The Bawl Corporation supplies alloy ball bearings to auto manufacturers in Detroit. Because of its…
A:
Q: Q4. You are planning to shift in your new house very soon. But before shifting you want an…
A: There are a ton of circumstances for which you need to compose a solicitation letter to your EB…
Q: 1. Which type of software dominates the supply chain management environment? a. Transaction…
A: Supply-chain-management software often called SCMS can be stated as the software equipment or tools…
Q: Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and…
A: The breakeven point refers to the revenue that is required for covering the fixed as well as the…
Q: Cost tradeoff exists between transportation and inventory Select one: a. True b. False
A: Compromises are compensatory trades between the expansion of some coordinations costs and the…
Q: Required: 1-a. Compute the companywide break-even point in dollar sales. 1-b. Compute the break-even…
A: The Break-even point is the point where the cost and revenue of the production process are equal for…
Q: Iqra University plans to launch its new campus at Bahria Town Karachi. This campus will facilitate…
A: As per the above case study of Iqra University, a procurement strategy required to launch a new…
Q: Sticky Fingers Inc. produces packing and masking tape. Last year’s annual report has been compiled,…
A: Hence, the inventory turnover is 6.67.
Q: A firm orders a number of items from a regional warehouse every 2 weeks. Deliverytakes 1 week.…
A: Target level is the level which is used in the periodic review system that is equal to the aggregate…
Q: Directions: Fill-in the missing items on the table. Consider the estimates below. HAKDOG CORPORATION…
A: The filled answers are-
Q: Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost…
A: Linear regression technique is used for solving questions involving a trend, preferbly
Q: 10. Imagine that your friend is opening a pizza business with home delivery, and you are advising…
A: To be successful in this venture, it's important to consider both order winning factors and…
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Annual Demand (units) = 2000 units Per unit Cost = Php 1000 per unit Holding Cost = 18% of unit cost…
Q: What is the increase in the average aggregate inventory value required if Cyberphone maintains the…
A: a. Inventory turnover = 8 times Therefore, the Inventory value of current year = $72/8 =$ 9 million…
Q: Junior dresses had an opening inventory of $36,000 at retail. Net sales for the period were $12,389.…
A: ANSWER IS AS FOLLOWS:
Q: PART 2: Linking Table Practice Create a linking table between Sales Order and Inventory. As it is…
A: Sales order to Inventory relationship is a one way relationship between the two. Market demand is…
Q: ng and supplying perspective and with a simple diagram describe how goods move from the supplier of…
A: Supply Chain management: Supply chain management is the enhancement of an item's creation and stream…
Q: Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost…
A: Linear regression Equation Y = Intercept + Slope*X X = Depended variables We used EXcel to find…
Q: "Merchandise, raw materials and in-process or finished goods" is the Building and Personal Property…
A: Business Personal Property refers to the items that are movable. These items are owned by business.…
Q: If total contribution margin of all menu items equals$2,500 and 250 items were sold, how you…
A: The contribution margin is figured as the selling cost per unit, less the variable expense per unit.…
Q: Takalani and Jasmin have been operating a Chisanyama business for 11 years. They have their business…
A: Decision making is perhaps the most key elements of the executives professional. Each director needs…
Q: JOGLEKAR SIEMSEN SYSTEMS, TECHNOLOGY, LLC INC. SCORE (1-5) (5 HIGHEST) SCORE (1-5) (5 HIGHEST)…
A: The weighted scores are calculated using the different factors pertaining to different weights.
Q: explain how the analysis would change if office space were in high demand.
A: Risk analysis is the risk evaluation process on the basis of how much project outcomes or objectives…
Q: Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost…
A: This question is asked about performing the linear regression analysis, I need to estimate the…
Q: Yuki sells rose flower pots. She gets the pots from Lazada. The price he paid for 6 pots is…
A: Solution is as follows
Q: Which “Classification-by-Type-of-Customer-Order” do you think Amazon use and why? Make-to-order,…
A: Note: We are answering a question no. 1 as a question that needs to be answered is not specified.…
Q: Consider the planned construction of new office building in a downtown area of a large city when…
A: Analysis if the office were in high demand If the interest for the place is high, then the risk…
Q: Homework Overview EE cost of goods sold of $2.3 million. Assume 52 business weeks per year. ocess to…
A: Given data; Particulars Last year Inventory Turnover 3.7 times Cost of goods sold…
Q: A company uses the production run model to determine the number of t-shirts that must be produced…
A: In question, given that The optimal production quantity for each production run=5000 units, we have…
Q: What cost segregation technique gives the most mathematically precise cost estimate? a. Scatter…
A: THE ANSWER IS AS BELOW:
Q: the information whether to accept additional orders from the customers or not is called available to…
A: Available to promise(ATP) is a business work that gives a reaction to customer order inquiries…
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Economic order quantity is the optimal quantity that the business needs to buy the inventory to…
Q: What will be the trend percentage, if the Inventory of a firm is 2,00,000; 2,40,000; 3,00,000 and…
A: A record's pattern rate in a specific year approaches that year's dollar total partitioned by its…
Q: 1.Which of the following pertains to an efficient supply chain? A)It deals with innovative products…
A: 1.Which of the following pertains to an efficient supply chain? Answer- d. All of the above. Dealing…
Q: What are the 4 types of main function within SAP's supply chain software?
A: SAP is a acronym for Systems Applications and Products, commonly referred to as ERP in common…
Q: Explain the Purchasing Portfolio that is being used in McDonald's with a diagram
A: McDonald's Corporation is an American fast-food company, founded in 1940 as a restaurant operated by…
Q: Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost…
A: Y = 3,676.67 + 192.31(X) In January = 3,676.67 + 192.31(1) = 3,868.98 units In February = 3,676.67…
Problem #1 C
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Discount-Mart, a major East Coast retailer, wants todetermine the economic order quantity (see Chapter 12 for EOQformulas) for its halogen lamps. It currently buys all halogenlamps from Specialty Lighting Manufacturers in Atlanta. Annualdemand is 2,000 lamps, ordering cost per order is $30, and annualcarrying cost per lamp is $12. a) What is the EOQ?b) What are the total annual costs of holding and ordering(managing) this inventory?c) How many orders should Discount-Mart place with SpecialtyLighting per year?Q 1 Super K Beverage Company distributes a soft drink that has a constant annual demand rate of 4,600 cases. A 12-pack case of the soft drink costs Super K $2.25. Ordering costs are $20 per order, and inventory-holding costs are charged at 25 percent of the cost per unit. There are 250 working days per year, and the lead time is four days. Find the economic order quantity and total annual cost, and compute the reorder point. Q 2 Environmental considerations, material losses, and waste disposal can be included in the EOQ model to improve inventory management decisions. Assume that the annual demand for an industrial chemical is 1,200 lb, item cost is $5/lb, order cost is $40, inventory-holding cost rate (percent of item cost) is 18 percent. Q3 An insurance claims work area has five claims waiting for processing as follows. Job Processing Time Due Date (Di) 1 22 35 2…K Cesar Rego Computers, a Mississippi chain of computer hardware and software retail outlets, supplies both educational and commercial customers with memory and storage devices. It currently faces the following ordering decision relating to purchases of disks: Quantity needed to qualify for the discount = 6,000 disks. What is the EOQ? EOQ = units (round your response to the nearest whole number). D S I Purchase price Discount price 36,100 disks $28 21% $0.89 $0.84
- Calculate total annual cost for the alternative suppliers for aproduct with following characteristics: montly demand; mean: 5000, standard deviation 2000 Holding cost: 30% Cycle service level: 98% Using EOQ formula, find the lot size. Don’t forget to add ordering cost to the total cost! Supplier 1 Supplier 2 Supplier 3 Ordering Cost(per order ) 1000 2000 5000 Cost 10 9 8 Average Lead Time ( month ) 0.5 2 2 Lead time std deviation ( month ) 0.5 1 2Maira Hijab Enterprise (MHE) is a supplier that sells Exclusive Embroidery Silk Hijabs to boutique and online resellers. The annual demand is approximately 360 hijabs. MHE pays RM50 for each hijab and estimates that the annual holding cost is 2 percent of the hijab's value. It costs approximately RM100 to place an order (managerial and clerical costs). Required: Determine the economic order quantity (EOQ) (Round up your answers to the nearest figure). а. b. Assuming a 300-day work year, how many orders should be processed per year and what is the expected time between orders? С. Calculate the total cost for the order. d. After several months of the introduction of the Exclusive Hijab, MHE decides to all costs related to their product due to the increment of hijab’s costs by the supplier. MHE currently orders 1000 hijabs per month. The new information as regards to the Exclusive Hijab is as follows: i. The ordering cost for these is RM100 per order and ii. The carrying cost is assumed…Question 1 For supply item ABC, Andrews Company has been ordering 400 units per week. A new purchasing agent has been hired by the company who wants to start using the economic-order- quantity method and its supporting decision elements. She has gathered the following information: Annual demand in units Lead time, in days Ordering costs Insurance and handling costs Purchase price per unit Return on cash investment 20,800 5 $22 $7 $15 15% Required
- .. 12.41 Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 7. Ms. Flynn would like to maintain a 90% service level. a) What safety stock level do you recommend for BX-5? b) What is the appropriate reorder point? PX ..12.42 Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a stand- ard deviation of 5 drives. Management wants a 97% service level. a) What value of Z should be applied? b) How many drives should be carried as safety stock? c) What is the appropriate reorder point? Px ... 12.43 Authentic Thai rattan chairs (shown in the photo) are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs. Carrying cost is $30 per unit per year, and the cost…example 15.1 Economic Order Quantity and Reorder Point Find the eco- nomic order quantity and the reorder point, given Annual demand (D) = 1,000 units Average daily demand (d) = 1,000/365 Ordering cost (S)= $5 per order Holding cost (H) = $1.25 per unit per year Lead time (L) = 5 days Cost per unit (C) = $12.50 %3D %3D %3D What quantity should be ordered?(c) A company which produces washing machines has to store a certain item, and two such items are needed to assemble one washing machine. Annual demand for machines is 1000 units. The following information is available. Ordering cost = Rs.250 per order Inventory holding cost = Rs.125 per unit per year Back-order cost = Rs.150 per unit per year Find the following. i) Economic order quantity ii) Optimum level of shortage
- Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost Order cost Annual holding cost Annual demand Average weekly demand Standard deviation of weekly demand. Lead time. Service probability Optimal order quantity Reorder point units units VALUE $12.00 $194.00/order 21% of item cost 24,700 units 494 /week 20 units 2 week 95% a. Determine the order quantity and reorder point. (Use Excel's NORMSINV() function to find your z-value and then round that z- value to 2 decimal places. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.)A large distributor of oil-well drilling equipment operated over the past two years with EOQ policies based on an annual holding cost rate of 22%. Under the EOQ policy, a particular product has been ordered with a Q* 80. A recent evaluation of holding costs shows that because of an increase in the interest rate associated with bank loans, the annual holding cost rate should be 27%. a. What is the new economic order quantity for the product? b. Develop a general expression showing how the economic order quantity changes when the annual holding cost rate is changed from I to IA jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. The jewelry firm operates 200 days per year. Usage rate is 25 stones per day, and ordering costs are $48. a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost. (Round your intermediate calculations and final answer to the nearest whole number.)b. If annual carrying costs are 30 percent of unit cost, what is the optimal order size? (Round your intermediate calculations and final answer to the nearest whole number.)c. If lead time is six working days, at what point should the company reorder?