A publishing Company produces books for the retail market. Demand for a current book is expected to occur at aconstant annual rate of 7500 copies. The cost of one copy of the book is $27.50. The holding cost is based on 18%annual rate, and production setup costs are $550.00. The equipment on which the book is produced has an annualproduction volume of 21,000 copies. The Company uses 250 working days per year and the lead time for aproduction run is 12 days. Assume the company is willing to tolerate one stock-out per year and that the lead timedemand follows a normal distribution with a standard deviation of 75 copies.Using an appropriate Fixed Order Quantity system model compute the following:(a) Minimum cost production lot size (whole number with no commas) -copies(b) Number of production runs per year (two decimal points) -runs(c) Cycle time (two decimal points) -days(d) Length of production run (two decimal points) -days(e) Maximum inventory (use the closest Z value, answer whole number) -copies(f) The reorder point (whole number) -copies(g) Total annual stocking cost (two decimal points with no commas) - $

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Answered: Using an appropriate Fixed Order…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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

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Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,800 copies. The cost of one copy of the book is $11.50. The holding cost is based on an 18% annual rate, and production setup costs are $150 per setup. The equipment with which the book is produced has an annual production volume of 25,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. Use the production lot size model to compute the following values. (Round your answers to two decimal places.) (a) Minimum cost production lot size 1281.82 (b) Number of production runs per year 6.08 x You may have rounded in the wrong direction. (c) Cycle time 41.08 (d) Length of a production run (in days) 12.82 (e) Maximum inventory 881.90 days (f) Total annual cost (in $) $ 1369.21 (g) Reorder point 468
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,400 copies. The cost of one copy of the book is $11.50. The holding cost is based on an 18% annual rate, and production setup costs are $150 per setup. The equipment with which the book is produced has an annual production volume of 25,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. Use the production lot size model to compute the following values. (Round your answers to two decimal places.) (a)Minimum cost production lot size (b)Number of production runs per year (c)Cycle time (d)Length of a production run (in days) days (e)Maximum inventory (f)Total annual cost (in $) $ (g)Reorder point
(e) Maximum inventory (f) Total annual cost (in $) $ (g) Reorder point
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7500 copies. The cost of one copy of the book is $14.50. The holding cost is based on an 20% annual rate, and production setup costs are $150 per setup. The equipment on which the book is produced has an annual production volume of 25,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. Use the Economic Production Quantity model to compute the following values: Minimum cost production lot size Number of production runs per year Cycle time Length of a production run Maximum inventory Total annual cost Reorder point
Morning Glory buys cereal directly from the manufacturer for $20 per case. The company’s annual demand for cereal is 200,000 cases and the company believes that the demand is constant for each of the 250 days per year that it is open for business. Average lead time from the supplier for new orders is a constant 8 days. The purchasing agent at Morning Glory estimates the annual inventory carrying cost is 10% and it costs approximately $40 to prepare, send, and receive an order. A. if economic order quantity is 2828 B. average inventory be based 2828 is 1414 What is the reorder point based on the answer to (a)? Morning Glory discovered if it orders 10,000+ cases each time, it can obtain a $2 price break per case from the supplier. What order quantity should Morning Glory place based on this information?
A publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7500 copies. The cost of one copy of the book is $27.50. The holding cost is based on 18% annual rate, and production setup costs are $550.00. The equipment on which the book is produced has an annual production volume of 21,000 copies. The Company uses 250 working days per year and the lead time for a production run is 12 days. Assume the company is willing to tolerate one stock-out per year and that the lead time demand follows a normal distribution with a standard deviation of 75 copies. Using an appropriate Fixed Order Quantity system model compute the following: (a) Length of production run (two decimal points) (b) Maximum inventory (use the closest Z value, answer whole number) (c) The reorder point (whole number) (d) Total annual stocking cost (two decimal points with no commas)
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,000 copies. The cost of one copy of the book is $12. The holding cost is based on an 15% annual rate, and production setup costs are $130 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 13 days. Use the production lot size model to compute the following values:
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,400 copies. The cost of one copy of the book is $13. The holding cost is based on an 15% annual rate, and production setup costs are $140 per setup. The equipment on which the book is produced has an annual production volume of 26,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. Use the production lot size model to compute the following values: I need help from 4 to 7 please Minimum cost production lot size. Round your answer to the nearest whole number. Do not round intermediate values. Q* = 1214 Number of production runs per year. Round your answer to two decimal places. Do not round intermediate values. Number of production runs per year = 6.09 Cycle time. Round your answer to two decimal places. Do not round intermediate values. T = 41.01 Length of a production run. Round your answer to…
Holstein Computing manufactures an inexpensive audio card (Audio Max) for assembly into several models of its microcomputers. The annual demand for this part is 100,000 units. The annual inventory carrying cost is $5 per unit and the cost of preparing an order and making production setup for the order is $750. The company operates 250 days per year. The machine used to manufacture this part has a production rate of 2000 units per day. Please keep two digits after the decimal and don't omit 0 before the decimal, e.g., 0.78 1. How many orders are produced in a year? 2. What is the maximum inventory for Audio Max? 3. How long is the production run for each order? 4. What is the total annual cost of preparing the orders and making the setups for Audio Max?
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