1.) THI produces a GPS device that is becoming popular in parts of Scandinavia. WhenThaarugo produces one of these, a printed circuit board (PCB) is used and it is populatedwith several electronic components. Thaarugo determines that it needs about 16,500 ofthis type of PCB each year. Demand is relatively constant throughout the year and theordering cost is about $20/ order; the holding cost is 25% of the price of each PCB. Twocompanies are competing to become the dominant supplier of PCB, and both haveoffered quantity discounts as shown in the following table.paper). If you work with someone just turn in 1 paper with everyone's name.REMEMBER TO EXPLICITLY WRITE THE FORMULAS USED AND THE VALUEFOR EACH VARIABLE.Which of the two suppliers should be selected if Thaarugo wishes to minimize total annualinventory costs? Explain.Supplier A-Quantity1-199200-499500 or moreSupplier A Price$38.60$35.75$34.80un names on aSupplier B-Quantity1-299300-9991000 or moreSupplier B Price$38.90$35.25$34.70

Answered: 1.) THI produces a GPS device that is…

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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Mr. Ahmed works in a bakery which operates days a week, 49 weeks a year. The bakery needs flour which is delivered to the bakery at 7.5 OMR each order. Mr. Ahmed needs 10 bags of four10 kg weight each bag. Each bag costs OMR 12. The annual holding cost per bag is 19% of the purchase price of bag. What will be the total annual variable cost, if banks only offer maximum of OMR 1500 for purchasing in a single order? a 368.2 b.318.9 c.320.55 d. 331.80 e.None is correct
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 × 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 $35 each Holding cost 20 percent of tire cost per year Demand 1,000 per year Ordering cost $20 per order Standard deviation of daily demand 3 tires Delivery lead time 4 days Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 98 percent. Assume the demand occurs 365 days per year. Determine the order quantity. Note: Round your answer to the nearest whole number. Determine the reorder point. Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the…
Al Fursan Inc, needs 300 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it takes 16 work days to receive it. The annual holding cost is 15 % of purchase price. The price RO 1 per kg. The company is operating 6 days per week. What is the economic order quantity (EOQ)? Round-up to the nearest integer- Select one: a. 593 kg b. 693 kg c. 690 kg d. 267 kg
← Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,500 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $52. The cost of each light is $1.05. The holding cost is $0.15 per light per year units (round your response to the nearest whole number). a) What is the optimal size of the production run? b) What is the average holding cost per year? $ c) What is the average setup cost per year? $ (round your response to two decimal places). (round your response to two decimal places). What is the total cost per year, including the cost of the lights? $ (round your response to two decimal places). Time Remaining: 02:02:32 Su
Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Annual demand Standard deviation of daily demand Item cost Annual holding cost 5,700 mufflers 5 mufflers per working day 30 per muffler 30% of the item value Use the above information to determine the best order size and the reorder point. Order Size = 252, R = 47 Order Size = 243, R = 40 Order Size = 300, R = 46 O Order Size = 302, R = 23 Ordering cost Service probability Lead time Working days $ 50 per order 90 % 2 working days 300 per year
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 I
A computer products store stocks color graphics monitors, and the daily demand is normally distributed with a mean of 1.6 monitors and a standard deviation of 0.4 monitor. The lead time to receive an order form the manufacturer is 15 days. Q 17.1- Determine the reorder point that will achieve 98 % service level.
The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost/high volume assemblies, the XO-01, has an estimated annual demand of 8,000 units. Talbot estimates the cost to place an order is $50, and the holding cost for each assembly is $20 per year. The company operates 250 days per year. 14) What is the economic order quantity for the XO-01? A) less than or equal to 100 units B) greater than 100 units but less than or equal to 180 units C) greater than 180 units but less than or equal to 250 units D) greater than 250 units 15) What is the annual inventory holding cost if Talbot orders using the EOQ quantity? A) less than or equal to $1,500 B) greater than $1,500 but less than or equal to $4,000 C) greater than $4,000 but less than or equal to $6,500 D) greater than $6,500
.. 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…
A local whole seller for Lipton tea estimates an annual demand of tea at 3900 kgs. It costs RO 10 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 1 per kg. The company is operating 6 days per week. What is the economic order quantity (EOQ) in kg? Round-up to the nearest integer- Oa. None is correct O b. 593 O c. 749 d. 267 e. 559
8. A local retailer anticipates an annual demand 12000 units of a product. The retailer allows shortages for that product, and these shortages are backordered at a rate of 4 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal maximum inventory level? Round - up to the nearest integer ? a. 1987 b. 1789 c. 1960 d. None is correct e. 1898
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?

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