Need...all... Q2)XYZ company is a subcontractor of the ABC company. XYZco. manufactures items and directly sells them to ABC co where ABCstore excess inventory. Annual demand D-20000 units. Setup (ordering)cost S- $150. Namely, whenever a batch is to be produced for fine-tuning all equipments a cost of $100 is incurred. Due to economy ofscale, a special contract has been signed between ABC and XYZ whereunit prices depend on the quantity purchased by XYZ co:Quantity0-24992500-31993200-Discount123UnitPrice (P)$5$4$3The holding costs are also charged to XYZ company, with the formulaH-IxP where P is the unit price and I - 20% as the adjusted interestrate. Moreover, the daily production rate of the ABC company is p-15units/day and the daily demand rate of the XYZ company is d-10units/day.a) Compute the production order quantities with discounts. Showcomputationsb) Compute total costs

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XYZ company is a subcontractor of the ABC company. XYZ manufactures items and directly sells them to ABC co where ABC re excess inventory. Annual demand D-20000 units. Setup (ordering) t S- $150. Namely, whenever a batch is to be produced for fine- ing all equipments a cost of $100 is incurred. Due to economy of le, a special contract has been signed between ABC and XYZ where prices depend on the quantity purchased by XYZ.CO

XYZ company is a subcontractor of the ABC company. XYZ manufactures items and directly sells them to ABC co where ABC re excess inventory. Annual demand D-20000 units. Setup (ordering) t S- $150. Namely, whenever a batch is to be produced for fine- ing all equipments a cost of $100 is incurred. Due to economy of le, a special contract has been signed between ABC and XYZ where prices depend on the quantity purchased by XYZ.CO

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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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…
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.. 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…
Define each of the following terms: c. Economic Ordering Quantity (EOQ); EOQ model; EOQ range