Central University has a demand level of 80 units per day, for a particular toner cartridge in the student computer labs each year. The costof each unit is 10.95. The purchasing director of the university estimates the ordering cost at $45 and thinks that the university can holdthis type of inventory at an annual storage cost of 22%. Operating days are 250. The lead time is for orders to arrive is four days.a. To minimize the total annual cost of purchasing and carrying how many toner cartridges should be ordered?[Select]b. What are the numbers of orders that need to be placed? [Select]c. What is the total cost of managing the inventory? $ [Select]d. What are the number of days in between orders? [Select]e. What is the re-order point? [Select]f. What is the total cost, including the cost of the cartridges? $ [Select]

As per bartleby guideline, expert can solve only three subparts of the question. Daily demand = 80…

Answered: Central University has a demand level…

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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The expected annual usage of a particular material is 540,000 units, and the standard order size is 36,000 units. The invoice cost of each unit is P900, and the ordering cost per order is P240. Assuming the company does not maintain safety stock. a. What is the average inventory? b. What is the ordering cost?
Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25.00 for each order, with an annual holding cost of $24.00. a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100 (round your response to the nearest whole number). b) What is the economic order quantity? units (round your response to the nearest whole number). Order Size 25 40 50 60 100 Total Cost ($)
Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is $30. The cost of holding one unit of inventory for one year is $15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Compute the economic order quantity. Economic order quantity = 1600 Compute the ordering, carrying, and total costs for the EOQ. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
20. The expected annual usage of a particular material is 540,000 units, and the standard order size is 36,000 units The invoice cost of each unit is P900, and the ordering cost per order is P240. Assuming the company does not maintain safety stock. What is the average inventory?
The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of resin, what would be the average inventory level?
The Gentry Garden Center sells 120,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, the inventory carrying cost is 20%, and the cost of placing an order with its supplier is $20. a. What is the Economic Ordering Quantity? b. What is the total Inventory cost with the safety stock? c. How often must the company order?
Hi Tech Corporation (HTC) expects to order 295,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $300 per order; the purchase price per chip is $32; and the firm’s inventory carrying costs is equal to 18 percent of the purchase price. EOQ=2309.75. If HTC is able to negotiate a reduction in the fixed ordering costs to $250.00 per order, but HTC decides to carry a safety stock of 28 days of memory chip sales. With the reduced fixed ordering cost and the increased average inventory due to the safety stock carried, what is the additional total inventory costs due to the decision to balance out uncertainty by carrying the specified safety stock?
The demand of paper box every year is 6,400 boxes. Storage and handling costs for the paper are $40 a year per box, and it costs approximately $80 to order and receive a shipment of a paper box. a. What order size would minimize the sum of annual ordering and carrying costs? b. Compute the total annual cost using your order size from part a.
Piping Manufacturing assembles television sets. The company purchases 3,600 television kits per year, at a cost of $65 per unit. The ordering cost is $31 and annual inventory costs represent 20% of the purchasing cost. What is the Economic Order Quantity? What is the total annual cost? Hold-it Inc. produces reusable shopping bags. Demand is 20,000 bags per day, 5 days per week, 50 weeks per year. Production is 50,000 per day. The setup cost is $200 and the annual holding cost rate is $.55 per bag. Calculate the EPQ, the total cost, the cycle length and optimal production run length.
21. The expected annual usage of a particular material is 540,000 units, and the standard order size is 36,000 units The invoice cost of each unit is P900, and the ordering cost per order is P240. Assuming the company does not maintain safety stock. What is the ordering cost?
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PUC Enterprise has annual demand for corporate finance textbook of 500. The cost of the textbook is 40$. Carrying Cost estimated to be 20% of unit cost and the ordering cost is $5 per order. If PUC order in quantities of 30 or more it can get a 10% discount on the cost of the book. Should PUC take the quantity discount? Assume the demand is constant

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