M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 700 units per month.The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in thetable. Ordering cost is $45, and annual holding cost per unit is $4.Allen Mfg.Quantity1-499500-9991000+Baker Mfg.Unit Price$16.0015.5015.00Quantity1-399400-799800+Unit Price$16.1015.6015.10a) What is the economic order quantity if price is not a consideration? 435 units (round your response to the nearestwhole number).b) Which supplier, based on all options with regard to discounts, should be used? Allen Mfg.c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component?(round your responses to the nearest whole number).The optimal order quantity is ☐ with a total cost of $

a) Economic Order Quantity (EOQ) without regard to price:The formula for the EOQ is:EOQ = sqrt((2 *…

Answered: M. P. VanOyen Manufacturing has gone…

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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M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 675 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $55, and annual holding cost per unit is $4. 2 Allen Mfg. Quantity 1-499 500-999 1000+ a) What is the economic order quantity if price is not a consideration? Baker Mfg. Unit Price $16.00 15.50 15.00 Unit Price $16.10 15.60 15.10 units (round your response to the nearest whole number). Quantity 1-399 400-799 800+
Alocal whole seller for Lipton tea estimates an annual demand of tea at 3900 kgs. It costs RO 100 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 2 per kg. The company is operating 6 days per week. What is the economic order quantity (EOQ)? Round-up to the nearest integer- O a. 1249 kg O b. 267 kg O c. 395 kg O d. 559 kg O e. None is correct
(a) Ignoring taxation, calculate the optimum order level of inventory over a one-year planning period using the EOQ model. (b) Estimate the level of safety inventory that should be carried by Toyzrfun Ltd. (c) If Toyzrfun Ltd were to be offered a quantity discount by its suppliers of 1% for orders of 30 000 units or more, evaluate whether it would be beneficial for the company to take advantage of the quantity discount. Assume for this calculation that no safety inventory is carried. (d) Estimate the expected total annual costs of inventory management if the EOQ had been (i) 50% higher, and (ii) 50% lower than its actual level. Comment upon the sensitivity of total annual costs to changes in the EOQ.
2. Gursoy Mobile Homes has an annual demand of 10,000 units for a small refrigerator. The supplier sells the units for $100 in order quantities below 124 and for $95 in order quantities above 125 units. The order cost is $5, and the annual holding cost is 10% of unit value. a) In what quantities should the item be purchased with an all-units quantity discount? b) If an incremental quantity discount schedule is in effect, how many refrigerators should Gursoy order each time an order is placed? c) Compare the cost savings for parts a) and b) with respect to the original case without discount. Which schedule is better?
Micro-Electronics Warehouse Headset and Webcam Sale Item Type Reg. Price After Savings Price BuddyChat 200 Headset $34.72 $24.40 BuddyChat 300 Headset $41.27 $34.91 BuddyCam HD Webcam $83.54 $61.46 You have decided to purchase the headset with the greatest markdown percent and the BuddyCam HD webcam in order to take advantage of an "Extra $15 Rebate" offer when you purchase both. What is the markdown percent on your total purchase including the rebate?
What is the relationship of the economic order quantityto demand? To the holding cost? To the setup cost?
9. A company stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. This company estimates its anDual holding cost for this item to be $25 per unit. The cost to place an order from the supplier is $75. (13 Points) a) Find the economic order quantity (EOQ). b) Find the anmual holding costs. c) The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. What is the reorder point?
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?
M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 725 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $55, and annual holding cost per unit is $4. O Allen Mfg. Quantity 1-499 500-999 1000+ Unit Price $16.00 15.50 15.00 Baker Mfg. Quantity 1-399 400-799 800+ Unit Price $16.10 15.60 15.10 a) What is the economic order quantity if price is not a consideration? 489 units (round your response to the nearest whole number). b) Which supplier, based on all options with regard to discounts, should be used? Allen Mfg. c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? The optimal order quantity is 1000 with a total cost of $ (round your responses to the nearest whole number).
5.Demand for fasteners Aw.w. Grainger is 20,000 boxes per month. The holding cost at Grainger is 20% per year. Each order incurs a fixed cost of $400. The supplier offers an all unit discount pricing scheme with a price of $5per box for order under 30,000 and a price of $4.90for all orders of 30,000 or more. How many boxes should Grainger order per replenishment?
Maira Hijab Enterprise (MHE) is a supplier that sells Exclusive Embroidery Silk Hijabs to boutique and online resellers. The annual demand is approximately 360 hijabs. MHE pays RM50 for each hijab and estimates that the annual holding cost is 2 percent of the hijab's value. It costs approximately RM100 to place an order (managerial and clerical costs). Required: Determine the economic order quantity (EOQ) (Round up your answers to the nearest figure). а. b. Assuming a 300-day work year, how many orders should be processed per year and what is the expected time between orders? С. Calculate the total cost for the order. d. After several months of the introduction of the Exclusive Hijab, MHE decides to all costs related to their product due to the increment of hijab’s costs by the supplier. MHE currently orders 1000 hijabs per month. The new information as regards to the Exclusive Hijab is as follows: i. The ordering cost for these is RM100 per order and ii. The carrying cost is assumed…
.. 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…

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