William Bevi lle's computer training school, inRichmond, stocks workbooks with the following characteristics:Demand D = 19,500 units/ yearOrdering costS = $25/ orderHolding cost H = $4/ unitjyeara) Calculate the EOQ for the workbooks.b) What are the annual holding costs for the workbooks?c) What are the annual ordering costs?
Q: Newell Brands has cost of goods sold of $3.35t million and annual turns of 4.73, Their holding cost…
A: Given: Cost of goods sold = $3.351million. Annual inventory value = 4.73 Holding costs = 43%.
Q: A local distributor for a national tire company expects to sell approximately 9,600 steel-belted…
A:
Q: TK Souvenirs sells lovely handmade tablecloths at its store. These tablecloths cost TK 15 each.…
A: Economic order quantity (EOQ) is a mathematical tool to find the optimal order quantity for…
Q: A restaurant serves an average of 623 desert (leche flan) servings every week. The manager places…
A: The current order quantity =1000 servings, Average weekly demand=623 servings, Let me assume the…
Q: A manager of an inventory system believes that inventory models are important decision making aids.…
A: Below is the solution:-
Q: 13.Esmeralda Company's annual material requirement used in a production is 144,000 units. This…
A: This question is related to the topic-Inventory Management and this topic falls under the operations…
Q: What is the reorder policy for BBB? b. What total annual cost does the model give
A: Reorder point refers to the level of inventory at which the stock should be replenished.
Q: Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an…
A: The economic order quantity model of inventory management is used to minimize the total annual…
Q: G-Tech’s monthly demand is 1000 units. You are in charge of the inventory department. You know that…
A: Monthly Demand (d)= 1000 Units Annual Demand (D) = 1000×12 = 12,000 units Holding cost (H) = $100…
Q: Saga ltd. produces electronic toys for children between the ages of 7-10 years old. The toys use a…
A: Formula:
Q: The following information relates to the forthcoming period:- Order costs = $25per order Holding…
A: Under production and operations the main aim of the business is to minimize its costs as much as…
Q: DB sells 500 bottles of supplements per week at $ 75 per bottle. DB's supplier charges DB $ 20 per…
A: Inventory management is the process of planning, monitoring, and controlling the movement of…
Q: William Beville's computer training school, in Richmond, stocks workbooks with the following…
A: The EOQ model of inventory management is used to minimize the annual inventory cost.
Q: 1. The purchasing manager of XYZ Company is ordering 2000 pcs of Item A by default every 2 months…
A: As per the guidelines, the first question is being attempted. Repost for other answers. Here, the…
Q: Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory…
A: Given Unit cost = $10.75/bag Demand = 95 bags/week Order cost = $58/order Holding cost = 25%
Q: William Beville’s computer training school, inRichmond, stocks workbooks with the following…
A: Demand D = 19,500 Ordering cost S = 25 Holding cost H = 4
Q: Metro Trading owned a factory to produce the automobile parts and has the following inventory,…
A: Given- Annual Demand (D) = 300,000 unitsOrdering cost (S) = RM 1,500 per unitPurchase cost (P) =…
Q: Barbara Flynn is in charge of maintaining hos-pital supplies at General Hospital. During the past…
A: a) Given that BF would like to maintain a service level of 90%, use the standard normal distribution…
Q: A local distributor for a national tire company expects to sell approximately 9,600 steelbelted…
A:
Q: The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is…
A: Note - Hi! Thank you for the question, As per the honour code, we are allowed to answer three…
Q: A local distributor for a national tire company expects to sell approximately 9,600 steel-belted…
A: Calculation Methods: EOQ = 2DSHNumber of Order per year = DemandEOQLenght of order = EOQDemandTotal…
Q: You have taken over as inventory manager at Dino’s Florists. You would like to use EOQ to compute…
A: Reorder Point is the point where the inventory has to be recorded and the inventory has to be…
Q: What is the EOQ? enter your response here units (round your response to two decimal places). Part…
A: According to our guidelines, we are supposed to answer only three sub-parts if there are multiples…
Q: Tata Company manufactures Toyota cars. It produces 250 cars a month. It buys the tires for cars from…
A: : Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: A company purchases special metal parts to make office furniture in lots of 100 units to satisfy an…
A: Given Information: Annual Demand (D) = 1600 units Holding cost (H) = $ 0.3 Ordering Cost (S) = $ 40…
Q: A supplier sells MF Tires to dealers. The annual demand is approximately 1,000 tires. The supplier…
A: Hi, We are supposed to answer three subparts at a time. Since you have not mentioned which question…
Q: Saga ltd. produces electronic toys for children between the ages of 7-10 years old. The toys use a…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Differentiate between Fixed Order Quantity Model, Fixed Time Period Model and Determine the Economic…
A: The most significant distinction between the fixed order quantity and fixed time period systems is…
Q: Rafiki Bar uses 10,000 cases of millet beer monthly. One case costs Shs.5,000. Holding cost is 30%…
A: THE ANSWER IS AS BELOW:
Q: Based on the records of ABC company, the annual demand for item HP26 has annual demand of 6,582…
A: Here, I have been given the following data, Annual demand=6582 units, The ordering cost per…
Q: Mattress Firm sells water beds and assorted supplies. Their best-selling bed has an annual demand…
A: Given- Annual demand (D) = 395 units Ordering cost (S) = $43 Holding cost (H) = $5 per unit per…
Q: Tacky Souvenirs sells lovely handmade tablecloths at its islandstore. These tablecloths cost Tacky…
A: (A) Economic order quantity refers to the point where the inventory cost is minimum and help the…
Q: Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: TK Souvenirs sells lovely handmade tablecloths at its store. These tablecloths cost TK $15 each.…
A: Economic order quantity refers to the optimum level of quantity where the total cost of inventory is…
Q: A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of…
A: Quantity Price 600 or more 8.20 400 to 599 8.70 Less than 400 10.00 Operating days = 214…
Q: Bart’s Barometer Business (BBB) is a retail outlet that deals exclusively with weather equipment.…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: Joe Henry's machine shop uses 2,520 brackets during the course of a year. These brackets are…
A: Annual Ordering Cost = (Annual Demand / EOQ)* Order cost =…
Q: Talavartería El Cairo, S.A., is trying to improve its inventory control system and has installed an…
A: The question is related to the Inventory Management. Economic order quantity is the required order…
Q: Petromax Enterprises uses a continuous review inventorycontrol system for one of its SKUs. The…
A: Inventory is the stock of goods that an organization maintains to keep the sales going. It is the…
Q: A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how…
A: EOQ is short for Economic Order Quantity and helps in understanding the quantity to be ordered per…
Q: A large law firm uses an average of 40 boxes of copier paper a day. The firm operates 260 days…
A: Given that, Annual demand D = 10,400 units [(40)(260)]Carrying cost S = $60Holding cost H = $30
Q: For a given product, the order placement cost is $5, the holding cost per unit per year is $10, and…
A: Note: - Since we can answer only up to three subparts we will answer the first three subparts(1, 2,…
Q: Sam's Cat Hotel operates 52weeks per year, 5 days per week, and uses a continuous review inventory…
A: The EOQ model of inventory management minimizes annual inventory cost.
Q: PLEASE MAKE IT IN EXCEL AND SHOW THE FORMULAS Talavartería El Cairo, S.A., is trying to improve its…
A: The question is related to the Inventory Management. Economic order quantity is the required order…
Q: Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past…
A: Given information is as below: Lead time demand for past year is 60. Standard Deviation is 7. Ms.…
Q: The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitanproduces…
A: Q=2×C0×DCc=2×1,200×1,215,0000.08=2,916,000,0000.08=190,919 pounds
Q: Bart’s Barometer Business (BBB) is a retail outlet that deals exclusively with weather equipment.…
A: Below is the solution:-
Q: For the EOQ policy, the total annual stocking cost (the sum of the holding and ordering costs) for…
A: EOQ determines the optimal number of units to be ordered each time.
Q: Fill in the following table based on this information: # Optimal Inventory Policy 1 Economic Order…
A: Economic order quantity is the optimal quantity that the business needs to buy the inventory to…
William Bevi lle's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D = 19,500 units/ year Ordering costS = $25/ order Holding cost H = $4/ unitjyear a) Calculate the EOQ for the workbooks. b) What are the annual holding costs for the workbooks? c) What are the annual ordering costs? |
Step by step
Solved in 2 steps
- William Beville’s computer training school, inRichmond, stocks workbooks with the following characteristics: Demand D = 19,500 units>yearOrdering cost S = +25>orderHolding cost H = +4>unit>yeara) Calculate the EOQ for the workbooks.b) What are the annual holding costs for the workbooks?c) What are the annual ordering costs?Question 1 For supply item ABC, Andrews Company has been ordering 400 units per week. A new purchasing agent has been hired by the company who wants to start using the economic-order- quantity method and its supporting decision elements. She has gathered the following information: Annual demand in units Lead time, in days Ordering costs Insurance and handling costs Purchase price per unit Return on cash investment 20,800 5 $22 $7 $15 15% RequiredEOQ, reorder point, and safety stock Alexis Company uses 916 units of a product per year on a continuous basis. The product has a fixed cost of $60 per order, and its carrying cost is $3 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate daily usage.) c. Determine the reorder point. d. Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity. a. Alexis' EOQ is units. (Round to the nearest whole number.)
- example 15.1 Economic Order Quantity and Reorder Point Find the eco- nomic order quantity and the reorder point, given Annual demand (D) = 1,000 units Average daily demand (d) = 1,000/365 Ordering cost (S)= $5 per order Holding cost (H) = $1.25 per unit per year Lead time (L) = 5 days Cost per unit (C) = $12.50 %3D %3D %3D What quantity should be ordered?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?EOQ, reorder point, and safety stock Alexis Company uses 937units of a product per year on a continuous basis. The product has a fixed cost of $44 per order, and its carrying cost is $4 per unit per year. It takes 5 days to receive a shipment after an order is placed, and the firm wishes to hold 10 days' usage in inventory as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. (Note: Use a 365-day year to calculate daily usage.) c. Determine the reorder point. d. Indicate which of the following variables change if the firm does not hold the safety stock: (1) order cost, (2) carrying cost, (3) total inventory cost, (4) reorder point, (5) economic order quantity.
- Annual demand 2,400 units Unit price (`) 2.40 Ordering cost (`) 4.00 Storage cost 2% p.a. Interest rate 10% p.a. Lead time ½ month Calculate EOQ, reorder level and total annual inventory cost. How much does the total inventory cost vary if the unit price is changed to $ 5? Typed and correct answer please. I ll rate accordingly.Walrus Company has the following information available concerning one of its inventory items: Cost of placing an order $30.00 Unit carrying cost per year $3.00 Annual unit demand 6,625 Safety stock 125 Average daily demand 25 Normal lead time in days 10 If there is a delay in shipping the item, approximately how many days can be covered by the safety stock? a.5 days b.110 days c.26 days d.31 daysEpworth Co. predicts that it will use 360,000 gallons of material during the year. It anticipates that it will cost $72 to place each order. The annual carrying cost is $4 per gallon. a. Determine the most economical order quantity by using the EOQ formula. b. Determine the annual order and carrying costs at the EOQ point.
- William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 20,000 units/year Ordering cost S $23/order Holding cost H $3/unit/year Part 2 a) The EOQ for the workbooks is ________ (round your response to the nearest whole number). Part 3 b) What are the annual holding costs for the workbooks? $________ (round your response to the nearest whole number). Part 4 c) What are the annual ordering costs? $_________ (round your response to the nearest whole number).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…10 Use the information presented in the graph to answer the following questions: Annual Cost C3 C2 Q1 You are also given the following information: Q1 =450 .Q2 = 700 C1 = 350 C2 = 750 1300 Q2 Order Quantity Which annual inventory cost component does the blue line represent? Total cost Which annual inventory cost component does the green line represent? Holding cost What is the Economic Order Quantity (EQ9) based on th Which annual inventory cost component does the red line represent? Ordering cost 220