The assumptions of the production order quantity model are met in a situation where annual demand is 5000 units, setup cost is $30, holding cost is $15 per unit per year,the daily demand rate is 20 and the daily production rate is 200. What is the production order quantity for this problem?149 units200 units20 units716 unitsNone of the choices is correct

Production order quantity refers to the order size that is produced in one batch of production. It…

Answered: The assumptions of the production order…

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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Which of the following is one of the assumptions of EOQ model? Group of answer choices Annual demand is known and even throughout the year Orders are received partially There are quantity discounts Multiple items are involved Lead time varies
Suppose the College of Engineering is planning to sell merchandise this year. They don't know how many students will be interested or how many will sell, so they've received three quotes for orders of different sizes. Assume the relationship is linear or best fit. a) What is the fixed cost? ✔ [ Select] 300 200 250 500 would cost, based on the above calculations? b) What are the Variable c) If the merchandise is v Small Order Medium Order Large Order Units 250 500 1000 [Select] Cost Quote $5,000.00 $9,500.00 $18,900.00 they need 1,500 units, what do you predict it d) If the College of Engineering were to receive an offer from a different producer for a flat rate of $19 per shirt, what would be the breakeven point between the two scenarios (round to the nearest 10 units)? [Select]
If EOQ = 289 units, S = $100, and H = $1 per unit per month, what approx. annual demand (D) level would the EOQ model best fit? Pick the closest answer option. EOQ = Sq root of [(2D*S)/H] D = annual demand in units S = cost of placing 1 order; H = cost of holding 1 unit of that item in inventory for 1 year 3596 units 3540.00 units 5011 units 4510 units
6. The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is $40.00. It costs $50.00 to place an order for SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume 250 working days in the year where SKU 005 is used. (Noteshaper: Scenario #26) а. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005? b. How many of SKU 005 should be ordered, to minimize combined ordering and holding costs? c. The vendor who sells SKU 005 has just offered a 5% discount for orders of 500 or more. Now how many should be ordered? d. Once the purchasing manager for SKU 005 places an order, the vendor requires 7 working days to deliver that order. What should be the purchasing manager's reorder point?
Define the components of holding period return. Can any of these components be negative?
Lancelot plc uses a certain material named “LANCE” in manufacturing its products. The materials are sold in sacks and for the quarter Lancelot uses 1200 sacks. The cost per sack is GHC95. It costs GHC150 to place an order whiles the special storage costs are GHC4 per sack. How many orders can the company place in the year using the optimal size? A. 2 B. 4 C. 6 D. 8 Reset Selection
Walmart experiences a demand of 5 units per day for its LED TVs. The lead time for re-stocking LED TVs is 10 days. What is the Re-Order Point? (Assume that the demand and lead time are known with certainty, that is, they are not uncertain) 50 units 2 units 50 days 2 days
A company plans to consume 700 pieces annually of a particular component. Past records indicate that its purchasing department spent $12,500 for placing 15,000 purchase orders. The average inventory was valued at $50,000 and the total storage cost was $7,500, which included wages, rent, taxes, insurance etc. related to store department. The company borrows capital at 10 per cent a year. If the cost of the component is Rs. 12 and lot size is 10, determine the; Storage expenses/year Capital cost /year Total cost/year
Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25 for each order, with an annual holding cost of $25 a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your responses to two decimal places). Total Cost (S) Order Size 25 40 50 60 100
The demand for a particular part called SKU 005 is 1,200 units a year. The cost of one SKU 005 is $40.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. Once the purchasing manager for SKU 005 places an order, it always takes the vendor 5 working days to deliver that order. What should the purchasing manager's reorder point be? O A. 24 O B. 36 O C. 30 O D. 5 O E. 12
Part Number Part Unit Value in $ Quantity currently in inventory Average annual usage 1234 2.5 3000 1235 0.2 900 1236 15 1000 1237 0.75 7900 1238 7.6 2800 1239 4.4 5000 1240 1.8 1800 1241 0.05 1200 1242 17.2 2000 1243 2500 1244 7000 300 550 400 50 180 20 200 10 950 160 430 9 3.2 given following table, perform ABC classification
Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? A. P8,160 B. P5,280 C. P5,760 D. P2,400

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