What is the EOQ? What is the average inventory? What is the total inventory cost for the month?
Q: Joe Henry's machine shop uses 2,500 brackets during the course of a year. These brackets are…
A: In the question it is given that, Total brackets used - 2500 Annual demand 2,500 Holding…
Q: A local distributor for a national tire company expects to sell approximately 9,600 steel-belted…
A:
Q: (**) Average weekly demand for free-range dog biscuits is 80 bags per week, with a standard…
A: Given Average weekly demand = 80 bags Standard deviation = 16 bags Lead time = 2 weeks Z=1.64 for…
Q: Need help understanding how to apply the EOQ to the below example... The Metropolitan Bus Company…
A: Note - Hi! Thank you for the question, As per the honour code, we are allowed to answer three…
Q: Talisman Games, a local gaming store, stocks the 4th edition of the rulebook of a popular…
A:
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: A local service station is open 7 days per week, 365 days per year. Sales of 10W40 grade premium oil…
A: Given Information: Daily Demand = 20 cans Inventory holding cost = $ 0.50 per can per year Ordering…
Q: Saga ltd. produces electronic toys for children between the ages of 7-10 years old. The toys use a…
A: Formula:
Q: ABC Inc. operates 360 uaya per ycar au uaua uel to make inventory decisions about plastic pellets…
A: Answer: ABC Inc. operates 360 days a year and its daily demand has been forecasted to be 600 units…
Q: Maroons Medical Supplies, Inc. must order masks from its supplier in lots of 1 dozen boxes. Given…
A: Given, annual demand, d= 26000 dozens Ordering cost,o =P30 Carrying cost, h= 20% of unit cost Price…
Q: ABC company has a need for goods per week is 100 kg, lead time based on observation = 3 weeks and…
A: Given, Average good= 100 kg Daily Need= 14.28 Lead time= 3 weeks Safety stock
Q: A shop sells 5000 glasses in a year and the sales are relatively constant throughout the year. The…
A: EOQ is the economic order quantity that the company should buy to minimize its annual inventory…
Q: Joe Henry's machine shop uses 2,520 brackets during the course of a year. These brackets are…
A: Annual demand (D) = 2520 units Holding cost (H) = $1.55 Ordering cost (S) = $19.00 Lead time(L) = 2…
Q: How long is the order cycle time? Now assume the manager does not use the EOQ model. Instead, the…
A: Order cycle refers to the processing of a particular route on the cycle through which the cycle gets…
Q: The XYZ Company purchases a component used in the production of automobile generators from an…
A: Annual demand (D)= 4,000×12=48000 Units Ordering costs(S) = $20 per order The unit cost (h)= $1.25…
Q: A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 60…
A: Given Annual Demand D= 12000 pounds (200x60) Ordering cost Co=$15 Holding Cost Ch=$3 per pound per…
Q: a. Using the appropriate EOQ model, compute for the recommended order size. Express your answer up…
A: Economic order quantity is the optimal quantity that the business needs to buy the inventory to…
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: The carrying cost curve and ordering cost curve of Bulldogs Inc.’s inventory intersect at 3,500…
A: Economic order quantity is the optimal order quantity that any company should purchase to reduce the…
Q: Princeton GI Roofing Ltd wants to reduce its total inventory cost using the appropriate EOQ model.…
A: Given, Annual demand, d=43420 sheets Ordering cost, o=Php 120 Holding cost, h=0.20 ×400= Php 80 Lead…
Q: Sunstar Ice Cream Sells 12,000 gallons of ice cream each month from its central storage facility.…
A: Given, Demand of ice cream, d = 12000 gallons Carrying cost, h = P 0.10 per gallon Ordering cost, o…
Q: A local gas station is open 7 days per week, 365 days per year. Sales of 10W40 grade premium oil…
A:
Q: Bulldogs Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory…
A: Economic order quantity is the optimal quantity that the businesses purchases to minimize their…
Q: A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady…
A: EOQ = 2 * S * DH S = Cost/ order = P1,080 D = Annual Demand = 32,000 H = Annual holding cost/ unit =…
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: CA sells 600 bottles of vitamins per week at $ 100 per bottle. CA's supplier charges CA $ 30 per…
A: Economic order quantity is the optimum quantity of the order which minimizes the holding cost and…
Q: Johnson's Juice sells bottles of "keep me awake during class" fruit juice to college students.…
A: Given,Annual demand of juice bottles= 88,000Holding cost = 16% = 0.16Setup cost = $ 45 per orderThe…
Q: DMC Bikes Co. is a retailer of bicycles. The most popular bicycle has an monthly demand of 3000…
A: EOQ model that is the Economic order quantity model of inventory management is used to minimize its…
Q: Demand for your product averages 10,000 units per year. Placing an order costs $500. The holding…
A: Given - Annual demand (D)- 10,000 units Order costs (S) - $500 units Holding cost (H) - 15% of the…
Q: The McDonald's fast-food restaurant on campus sells an average of 4,800 quarter-pound hamburgers…
A: Inventory average = 465 pounds Average hamburger sold = 4800 Cost of hamburger = 3
Q: Ross White’s machine shop uses 2500 brackets during the course of a year, and this usage is…
A: Economic order quantity is the optimal quantity level that the business should buy to reduce the…
Q: Joe Henry's machine shop uses 2,490 brackets during the course of a year. These brackets are…
A: Economic order quantity is a formula used by businesses to determine the ideal order amount in an…
Q: Grey Wolf Lodge is a popular 500-room hotel in the North Woods. Managers need to keep close tabson…
A: Daily demand (d) = 275 bars Ordering cost (Co) = $10 Holding cost (H) = $0.30 Lead time (L) = 5 days…
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: The electrolyte drink for our beloved NMSU soccer team average normally distributed demand of 5…
A: The reorder point (ROP) can be defined as a degree of stock which triggers an activity to recharge…
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: The NATO Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the…
A:
Q: Instruction: Answer what is being required. You may compute them manually or use the Excel QM.…
A: λ=60×52=3,120 units per yearh=$0.005per unit per yeark=$12c=0.02Q=2Kλh=2kλh =2×12×31200.005=3870…
Q: Joe Henry's machine shop uses 2,530 brackets during the course of a year. These brackets are…
A: Given data, D Demand 2530 Units H Holding Cost 1.65 $ S Ordering cost 18.25 $…
Q: Osprey Sports stocks everything that a musky fisherman couldwant in the Great North Woods. A…
A: a) order quantity D = 5 lures/day = 350 * 5 demand= 1750 lures /year S = $40 per order H = $1 per…
Q: In the past, Taylor Industries has used a fixed−time period inventory system that involved taking a…
A: The ABC Method isolates providers and their stock into classes dependent on cost per unit and amount…
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: Item X is a standard item stocked in a company's inventory of component parts. Each year the firm,…
A: Order size is the optimal order quantity that the company need to purchase so that their annual…
Q: The items have a standard cost of $81/unit. The monthly demand for items is normally distributed…
A:
Q: Thompson Paint Company uses 60,000 gallons of pigment per year. The cost of ordering pigment is $200…
A: Economic order quantity is the optimal quantity that the business needs to buy to meet customers’…
Q: A small local pharmacy, Tacky Pharm sells self-test kits for diabetic patients. These kits cost…
A:
Q: Joe Henry's machine shop uses 2,480 brackets during the course of a year. These brackets are…
A: Given, Annual demand, d = 2480 brackets. Holding cost, h = $1.45 per bracket Ordering cost, o =…
Dairy Ice Cream sells 12,000 gallons of ice cream each month from its central storage facility. Monthly carrying costs are P0.10 per gallon and ordering costs are P50 per order. Ignore potential stock out costs and assume a 30-day month.
- What is the EOQ?
- What is the average inventory?
- What is the total inventory cost for the month?
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- I need answers A company uses on an average 216 parts a day with a standard deviation of 16 parts per day in a manufacturing process. Cost of placing and receiving an ordering is BDT 40,000. Estimated monthly carrying cost is BDT 90 per part. Orders are delivered approximately 7 days after being placed. The delivery time is normal with a mean of 7 days and a standard deviation of 2 days. The company is open 360 days per year. Find the order quantity that is economical. If the Company takes 3% stock out risk, then find safety stock (SS) quantity and Re-Order Point? 3.If the supplier offers a discount of BDT 8 per circuit board for purchasing of 4000 boards at a time, then financially evaluate and justify whether the company will go with the offer or not? 4.The person who orders the boards follows this rule: Order when the amount on…All Seasons Flower Shop uses 870 clay pots a month. The pots are purchased at $ 6 each. Annual holding cost per pot is estimated to be 35% of purchase cost. Ordering cost is $ 40 per order. The shop operates 12 months in a year. What is the economic order quantity (EOQ)?Sunstar Ice Cream Sells 12,000 gallons of ice cream each month from its central storagefacility. Monthly carrying cost are P.10 per gallon and ordering cost are P50 per order.Ignore potential stockout cost and assume a 30 days month. What is the optimal length of the inventory cycle?How many orders will be placed per month?
- Ezrah is attempting to perform an inventory analysis on one of her most popular beauty products, the "Heavenly perfume. Annual demand for this product is 10,000 units with carrying costs of P50 per unit per year. The ordering costs for her company typically run P100 per order. Lead time averages 10 days( Assume 250 working days). Compute the total inventory costQuestion 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% RequiredFruitcake Specialists sells 36,000 fruit cakes annually. Annual carrying costs are P5 per fruit cake and the ordering costs are P100 per order. The firm has decided to maintain a safety stock of one month's sales or 3,000 fruit cakes. The delivery time per order is 5 days. Assume a 365-day a year. What is the EOQ? What is the average inventory? How many orders should be placed each year? What is the total inventory cost? What is the re-order point?
- You are the operations manager of a firm that uses the continuous review (EOQ) system to control your inventory. Suppose the firm operates 52 weeks per year, 365 days, and has the following characteristics for its primary item: Demand = 25,000 units/year %3D Ordering Cost = $30/order Holding Cost = $8/unit/year Lead Time = 2 weeks Standard Deviation in weekly demand = 100 units %3D What is the economic order quantity for this item? Between 400 and 450 units O Between 450 and 500 units Fewer than 400 units O Greater than 500 unitsWeekly Average Demand 110 Standard deviation of (weekly) demand 30 Setup cost ($) 1400 Lead time (in weeks) 2 Procurement cost ($) 200 Holding cost /unit/week ($) 3 You are given the demand and inventory related information about a grocery store’s product in the table. The store is open for 46 weeks in a year. What is the reorder point if it wants to achieve a service level of 97%? (Do not round your intermediate calculations. Round your final answers to the nearest whole number.GB Inc. sells 12,000 gallons of ice cream each month from its central storage facility. Monthly carrying costs are P0.10 per gallon and ordering costs are P50 per order. Ignore potential stockout costs and assume a 30-day month. What is the total inventory cost for the month? a. P346 per month b. P500 per month c. P1,000 per month d. P650 per month
- Inventory Management Basic EOQ Webber Tools sells power washers and is open for business 320 days a year. It costs the store $3750 each time it places an order with the manufacturer for the washers. The annual cost of carrying a washer in inventory is $400. The manager uses the Basic EOQ Model and forecasts an annual demand for the washers of 1200 units. What is the economic order quantity? What is the total minimum annual inventory cost? What is the average inventory level? How many orders per year will be required? How long is the order cycle time? Now assume the manager does not use the EOQ model. Instead, the manager has been ordering 125 washers at a time. How much money will be saved in annual inventory costs if the company switches to the EOQ (assume no stockouts)?What is the inventory position if the on-hand quantity is 762 units, scheduled receipts are 225 units, and 230 units are on backorder? Rapallo Sneakers, Inc. sells a pair of LG sneakers for $42. Due to the recent fitness craze, these shoes are in high demand: 52 pairs of shoes are sold per week. The ordering cost is $42 per order, and the annual holding cost is 25 percent of the selling price. If the store operates 48 weeks a year, what can you say about the size of the current order quantity of 225 pairs?You have an annual demand of 800 units of your product which you sell for $90 a unit. It costs you $20 to place an order and carrying costs for the item are 14%. What is your EOQ?