Question 29Kona's Manufacturing purchases 7000 boxes of organic dog treats per year. Boxes of the treats are priced as follows: 1 to 999$1.30 dollars each, 1,000-1,499: $0.80 cents each, and 1,500 or more: $0.65 cents each. It costs $25 to prepare an order andreceive it and carrying costs are 25 percent of unit cost per unit on an annual basis. Determine the feasible order quantity (youdo not need to determine the total cost for this problem).O 1038O 1686O1323O 10751468

Given- Annual Demand (D) = 7000 boxesOrdering Cost (S) = $25Holding Cost (H) = 25% of unit cost

Answered: Kona's Manufacturing purchases 7000…

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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Problem 20-30 (Algo) It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 x 14 BSW. A perpetual inventory system has been used, so you examine this, as well as other records, and come up with the following data: Cost per tire Holding cost Demand 50 each 25 percent of tire cost per year 1,100 рer year Ordering cost Standard deviation of daily demand Delivery lead time 32 per order 7 tires 8 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 90 percent. Assume the demand occurs 365 days per year. a. Determine the order quantity. (Round your answer to the nearest whole number.) Order quantity 75 tires b. Determine the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not…
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1(a). Weekly demand for EPSON printers at a WALMART store is normally distributed with a mean of 280 and a standard deviation of 180. The store manager continuously monitors inventory and currently orders 1,100 printers each time the inventory drops to 700 printers. EPSON currently takes two weeks to fill an order. How much safety inventory should WALMART carry? What is the Cycle Service Level (CSL)? What is the expected shortage per replenishment cycle (ESC)? What is the fill rate (fr)?
13.37. Kelly's Tavern serves Shamrock draft beer to its customers. The daily demand for beer is normally distributed, with an average of 20 gallons and a standard deviation of 4 gallons. The lead time required to receive an order of beer from the local distributor is 12 days. Determine
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13.4. The Sofaworld Company purchases upholstery material from Barrett Textiles. The company uses 45,000 yards of material per year to make sofas. The cost of ordering material from the textile company is $1500 per order. It costs Sofaworld $0.70 annually to hold a yard of material in inventory. Determine the optimal number of yards of mate- rial Sofaworld should order, the minimum total inventory cost, the opti- mal number of orders per year, and the optimal time between orders.
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Define each of the following terms: c. Economic Ordering Quantity (EOQ); EOQ model; EOQ range

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