a. If Sarah wants to minimize her annual ordering and inventory holding costs. how much palm oil should she purchase with each order (in kg)? (Do not round intermediate calculations.) If Sarah orders 3,750 kg with each order, what would be the annual sum of the ordering and holding costs? kgs
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- Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory system. It purchaseskitty litter for $10.75 per bag. The following information isavailable about these bags.Demand = 95 bags>weekOrder cost = $58>orderAnnual holding cost = 25 percent of costDesired cycle@service level = 90 percentLead time = 4 weeks 128 working days2Standard deviation of weekly demand = 16 bagsCurrent on-hand inventory is 315 bags, with no open ordersor backorders.a. What is the EOQ? What would be the average time betweenorders (in weeks)?b. What should R be?c. An inventory withdrawal of 10 bags was just made. Is ittime to reorder?d. The store currently uses a lot size of 490 bags (i.e.,Q = 490). What is the annual holding cost of this policy?Annual ordering cost? Without calculating the EOQ, howcan you conclude from these two calculations that thecurrent lot size is too large?e. What would be the annual cost saved by shifting from the490-bag lot size to the EOQ?Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory system. It purchaseskitty litter for $10.75 per bag. The following information isavailable about these bags.Demand = 95 bags>weekOrder cost = $58>orderAnnual holding cost = 25 percent of costDesired cycle@service level = 90 percentLead time = 4 weeks 128 working days2Standard deviation of weekly demand = 16 bagsCurrent on-hand inventory is 315 bags, with no open ordersor backorders. a. Suppose that the weekly demand forecast of 95 bags isincorrect and actual demand averages only 65 bags perweek. How much higher will total costs be, owing to thedistorted EOQ caused by this forecast error?b. Suppose that actual demand is 65 bags but that orderingcosts are cut to only $10 by using the Internet to automateorder placing. However, the buyer does not tell anyone,and the EOQ is not adjusted to reflect this reduction in S.How much higher will total costs be, compared to whatthey could be if…Sarah's Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1,100 kg of palm oil per day on average. The supplier charges a $55 delivery fee per order (which is independent of the order size) and $5.00 per kg. Sarah's annual holding cost is 20 percent. Assume she operates and sells five days per week, 52 weeks per year. If Sarah wants to minimize her annual ordering and inventory holding costs, how much palm oil should she purchase with each order (in kg)? a. kgs (Do not round intermediate calculations.) If Sarah orders 4,250 kg with each order, what would be the annual sum of b. the ordering and holding costs? (Round your answer to 3 decimal places.) If Sarah orders 7,600 kg with each order, what would be the sum of the C. ordering and holding costs per kg sold? per kg (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Sarah's supplier is willing to sell her palm oil at a 5…
- Sarah's Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1,100 kg of palm oil per day on average. The supplier charges a $55 delivery fee per order (which is independent of the order size) and $5.00 per kg. Sarah's annual holding cost is 20 percent. Assume she operates and sells five days per week, 52 weeks per year. If Sarah wants to minimize her annual ordering and inventory holding costs, a. kgs how much palm oil should she purchase with each order (in kg)? (Do not round intermediate calculations.) If Sarah orders 4,250 kg with each order, what would be the annual sum of b. the ordering and holding costs? (Round your answer to 3 decimal places.) If Sarah orders 7,600 kg with each order, what would be the sum of the C. ordering and holding costs per kg sold? per kg (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Sarah's supplier is willing to sell her palm oil at a 5…Sarah's Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1,000 kg of palm oil per day on average. The supplier charges a $65 delivery fee per order (which is independent of the order size) and $5.75 per kg. Sarah's annual holding cost is 25 percent. Assume she operates and sells five days per week, 52 weeks per year. If Sarah wants to minimize her annual ordering and inventory holding costs, а. |kgs how much palm oil should she purchase with each order (in kg)? (Do not round intermediate calculations.) If Sarah orders 4,250 kg with each order, what would be the annual sum of b. the ordering and holding costs? (Round your answer to 3 decimal places.) If Sarah orders 8,200 kg with each order, what would be the sum of the с. ordering and holding costs per kg sold? per kg (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Sarah's supplier is willing to sell her palm oil at a 5…Sarah’s Organic Soap Company makes organic liquid soap. One of the raw materials for her soaps is organic palm oil. She needs 1000 kg of palm oil per day, on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah’s annual holding cost is 25 percent. Assume she operates and sells five days per week, 52 weeks per year. a. If Sarah wants to minimize her annual ordering and inventory holding costs, how much palm oil should she purchase with each order (in kg)? b. If Sarah orders 4000 kg with each order, what would be the annual sum of the ordering and holding costs? c. If Sarah orders 8000 kg with each order, what would be the sum of the ordering and holding costs per kg sold? d. Sarah’s supplier is willing to sell her palm oil at a 5 percent discount if she purchases 15,000 kg at a time. If she were to purchase 15,000 kg per order, what would be her annual sum of the ordering and holding costs?
- Staples buys printer cartridges for $20. The demand for the cartridges is 300 per month. Staples incurs a fixed cost for managing the cartridges of $100. Their annual holding cost is 20%. Calculate Inventory turns per year Number of orders Staples makes per year.Sam’s Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags.Demand = 90 bags/weekOrder cost = $54/orderAnnual holding cost = 27 percent of costDesired cycle@service level = 80 percentLead time = 3 weeks 118 working days2Standard deviation of weekly demand = 15 bagsCurrent on-hand inventory is 320 bags, with no open orders or backorders.a. What is the EOQ? What would be the average time between orders (in weeks)?b. What should R be?c. An inventory withdrawal of 10 bags was just made. Is it time to reorder?d. The store currently uses a lot size of 500 bags (i.e., Q = 500). What is the annual holding cost of this policy? Annual ordering cost? Without calculating the EOQ, how can you conclude from these two calculations that the current lot size is too large?e. What would be the annual cost saved by shifting from the 500-bag lot size to the…Antique manufactures old-fashioned telephones for use in movie scenes (and other displays). Antique's annual demand for rotary telephones is 33,000 units per year, so it needs just as many receptors to assemble the phones. Receptors are ordered from a supplier, and shipping and handling costs are $15 per order (regardless of how many units are on order). The holding costs are $7/unit/year. If the current company policy calls for orders of 3,000 receptors, what are the total annual inventory costs for the receptors? round your final answer to the nearest whole dollar.
- Sarah’s Organic Soap Company makes organic liquid soaps. She purchases organic Palm oil to make her soaps. She needs 1,000 kgs of Palm oil per day on average. The supplier charges a $60 delivery fee per order (which is independent of the order size). Sarah’s annual holding cost is $1.825 per kg of palm oil. Assume there are 365 days a year. a. What is the daily cost of ordering and holding when EOQ is ordered? b. Again, assume that Sarah needs 1,000 kgs of Palm oil per day. Sarah’s supplier is willing to sell Palm oil to her at a 10% discount on its selling price if she purchases 10,000 kgs at a time. If Sarah takes the offer and orders 10,000 kg at a time, how much will be the resulting daily cost of ordering and holding? (Assume that the fixed cost of ordering is $60 per order and the per unit inventory holding cost is 0.005 per day per kg of Palm oil.) c. Again, assume that Sarah needs 1,000 kgs of Palm oil per day. Sarah’s supplier is willing to sell Palm oil to her at a 10%…A small local pharmacy, Tacky Pharm sells self-test kits for diabetic patients. These kits cost Tacky $15 each. Customers want to buy the kits at a rate of 240 per week. The pharmacy operates 52 weeks per year. Tacky Pharm estimates ordering cost at $50. Annual holding costs are 20 percent of the unit cost. Lead time is 2 weeks. Using the information given Calculate the economic order quantity. Calculate the total annual costs using the EOQ. Determine the reorder point.Kroger's orders Louisiana Specialty Foods famous meat pies at a rate of 350 cases a month. The order cost, which includes transportation is $37.50. Annual holding costs are $5.75 per case. The internal expense per/pie is $2.59. Assume 250 days per year. Lead time is 3 days. a. Determine the EOQ [Select] b. What is the average inventory? [Select] c. Determine the number of orders per year [Select ] d. Determine total inventory-related costs per year [Select] > e. What is the total cost, including the cost of the pies? [Select] What if Kroger's decid to reduce the ordering of the pies to 190 cases very time they placed an order, wh ordering costs? [Select] impact would if on