7. Shipments of Product Q from a plant to a wholesaler are made in lots of 400. The wholesaler'saverage demand for Q is 150 units per week. Lead time from plant to wholesaler is 5 weeks. Thewholesaler pays for the shipments when they leave the plant. The plant has proposed several newlead time and lot size options to the wholesaler (see table below). If the wholesaler's goal is tominimize total cycle plus pipeline inventories, which option should the wholesaler select?OPTIONCURRENT123SHIPMENTLOT SIZE4005008001,000PLANT-TO-WHOLESALER LEADA. option #1B. option #2C. option #3D. remain with the current optionTIME5432

To calculate total inventory, we need to calculate what is Cycle and Pipeline inventory.Cycle…

Answered: Shipments of Product Q from a plant to…

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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The benefits of teams include: A) higher quality B) higher productivity C) greater worker satisfaction D) all of the above E) none of the above The following are considered part of the EOQ computation: A) Holding costs B) Inventory costs C) Annual Demand D) A and B E) A, B and C.
In a short article on Pros and Cons of Re-Order Control and Cycle Inventory Tracking Systems, please clarify it to me.
Seah Corporation presents the following data: Usage is 400 units per month, cost per order is P20, and carrying cost per unit is P6. Given these data, answer the following questions: (A) What is the economic order quantity? (B) How many orders are required each month? CHOICES A) 32 and (B) 6 (A) 32 and (B) 8 (A) 52 and (B) 6 (A) 52 and (B) 8 (A) 62 and (B) 10
2. Demand for Quiggly Pops (QP) follows an up and down pattern over the four quarters of a year, with peaks in the spring and winter months when special promotions are held. Production is handled by a highly-skilled local workforce during a regular 40-hour week (i.e., overtime and subcontracting are not used). The company likes to zero out its inventory at the end of a year so that it can start fresh each January. QP currently uses a level production strategy, but would like to evaluate other options. Create a production plan and calculate the cost of the plan for each strategy listed below. Which plan would you recommend to QP? (a) Level production (b) Chase demand Quarter Demand Forecast 1 70,000 2 100,000 3 50,000 4 150,000 Beginning workforce 40 workers Production rate per worker 1250 units/quarter Regular production cost $10 per unit Hiring cost $500 per worker Firing cost $500 per worker Holding cost $1 per unit per quarter
Historical records on the use of spare parts for several large hydraulic presses are to serve asan estimate of usage for spares of a newly installed press. Stockout costs involve downtimeexpenses and special ordering costs. These average $4,200 per unit short. Spares cost $800each, and unused parts have zero salvage. Determine the optimal stocking level.Spares Used Relative Frequency Cumulative Frequency0 .20 .201 .40 .602 .30 .903 .10 1.004 or more .001.00
A regional warehouse orders items once a week from a central warehouse. Thetruck arrives 3 days after the order is placed. The warehouse operates 5 days aweek. For a particular brand and size of chicken soup, the demand is fairly steadyat 20 cases per day. Safety stock is set at 2 days’ supply.a. What is the target level?b. If the quantity on hand is 90 cases, how many should be ordered?
3. Determine EPP and production run sizes using Part-Period Method with detailed explanation considering setup cost = $100 per run; unit holding cost = $1.25 per period. Use the part-period method to determine production run sizes for the following demands (i.e., net requirement) for a manufactured part. 1 2 60 40 100 Demand Cumulative 60 demand 3 20 120 4 20 40 Periods 5 30 70 6 70 7 70 140 8 50
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Demand for portable music players for joggers has caused Nancy Industries (Nancy) to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nancy expects demand for music player to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demands for the players for last year was as follows : Month Demand (units) Jan 4200 Feb 4300 Mar 4000 Apr 4400 May 5000 Jun 4700 Jul 5300 Aug 4900 Sep 5400 Oct 5700 Nov 6300 Dec 6000 Question : From the choice of simple moving average, weighted moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate to Nancy Industries? Why?
Q2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually. Q2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually.
1. a) Zoey Enterprises manufactures solar engines for helicopters. Given the fuel savings available, new orders for 125 units have been made by customers requesting credit. The variable cost is $11,400 per unit, and the credit price is $13,000 each. Credit is extended for one period. The required return is 1.9 percent per period. If Zoey Enterprises extends credit, it expects that 30 percent of the customers will be repeat customers and place the same order every period forever, and the remaining customers will place one-time orders. Should credit be extended? 2. b) Now, assume that the probability of default is 15 percent. Should the orders be filled now? Assume the number of repeat customers is affected by the defaults. In other words, 30 percent of the customers who do not default are expected to be repeat customers.

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