A liquid company produces hand sanitizer which has demand of 300,000 units per year. The production...
- A liquid company produces hand sanitizer which has demand of 300,000 units per year. The production cost of the product is $0.5 per unit. The company decided to use 10% of the production cost for inventory carrying cost. At each order, the company needs to pay extra $20 for the paperwork. Assume that an order replenishes instantaneously. Compute economic order quantity, optimal order interval, and total annual cost.
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A liquid company produces hand sanitizer which has demand of
300,000 units per year. The production...
PLEASE DO BY HAND! DQuestion 12 6 pts Ace Manufacturing produces commercial lawnmowers units in batches. the company estimates the demand for the year is 10,000 units. It costs about $80 to set up th...
PLEASE DO BY HAND!
DQuestion 12 6 pts Ace Manufacturing produces commercial lawnmowers units in batches. the company estimates the demand for the year is 10,000 units. It costs about $80 to set up the manufacturing process, and the carrying cost is about 70 cents per unit per year. When the production process has been set up, 120 lawnmowers units can be made daily. The demand during the production period is approximately 60 units per day. The company operates its...
1 - the annual demand for product 15600 units the weekly demand is 280 units with...
1 - the annual demand for product 15600 units the weekly demand is 280 units with a standard deviation 90 units the cost to place an order is $31.00 and the time from order to receipt is 4 weeks the annual inventory carrying cost is $0.10 per unit A- what is the EOQ quantity? B- from the information above what is the reorder point maintain a 95% service level? 2 - the weekly demand is 200 units the cost to...
2. Montegut Manufacturing produces a product for which the annual demand is 20,000 units. Production averages...
2. Montegut Manufacturing produces a product for which the annual demand is 20,000 units. Production averages 80 units per day, while demand is 30 units per day. Holding costs are $5.00 per unit per year, and setup cost is $250.00. (a) If the firm wishes to produce this product in economic batches, what size batch should be used? (b) What is the maximum inventory level? (c) How many order cycles are there per year? (d) What are the total annual...
Fancy-Bike Manufacturing needs 100,000 units of bicycle tires for its production of beach bikes per year....
Fancy-Bike Manufacturing needs 100,000 units of bicycle tires for its production of beach bikes per year. The carrying costs of these tires are $10 per unit per year and the fixed ordering cost is $400. What is the optimal number of units Fancy-Bike should order each time in order to minimize total inventory cost? At this optimal quantity, how often should Fancy-Bike order its bicycle tires? Assume a 365-day year.
Fancy-Bike Manufacturing needs 100,000 units of bicycle tires for its production of beach bikes per year....
Fancy-Bike Manufacturing needs 100,000 units of bicycle tires for its production of beach bikes per year. The carrying costs of these tires are $10 per unit per year and the fixed ordering cost is $400. What is the optimal number of units Fancy-Bike should order each time in order to minimize total inventory cost? At this optimal quantity, how often should Fancy-Bike order its bicycle tires? Assume a 365-day year.
Acme Distributors has an annual demand for an airport metal detector of 1,275 units. The cost...
Acme Distributors has an annual demand for an airport metal detector of 1,275 units. The cost of a typical detector to Acme is $355. Carrying cost is estimated to be 15% of the unit cost, and the ordering cost is $35 per order. If Karen Powell, the owner, orders in quantities of 340 or more, she can get a 5% discount on the cost of the detectors. a. What is the optimal order quantity, given the following price breaks for...
Annual demand (D and u) is 4,260 tons, and production capacity is 6,000 tons in the...
Annual demand (D and u) is 4,260 tons, and production capacity is 6,000 tons in the roasting plant. Excess inventory has increased operational expense and spatial needs within the Starbucks' production facility. Amie Glaser has decided to introduce Just-In-Time (JIT) manufacturing and has asked you to establish a Quality Involvement Team (QIT) team to reduce the roasting machine's setup cost, economic production quantity, and hence, maximum inventory levels. The unit cost per ton remains at $2,400, and the annual holding...
The Textile Company sells 175 units per month of a certain large bath towel. The unit...
The Textile Company sells 175 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimated to be $12.00. The store uses an inventory carrying charge of 27% per year. Compute: i. The optimal order quantity [] ii. Order frequency [] iii. The annual cost of inventory management [] iv. If, through automation of the purchasing process, the ordering cost can...
If annual demand is 24,000 units, and the order quantity is 3,000 units, which of the...
If annual demand is 24,000 units, and the order quantity is 3,000 units, which of the following accurately describes the decision-making environment? a. The annual number of order placements will be 8, and average inventory levels will be 1,500 b. The annual number of order placements will be 8, and average inventory levels will be 3,000 c. The annual number of order placements will be 12, and average inventory levels will be 12,000 d. The annual number of order placements...
A company follows an EPQ model with production rate -180 units per month and a demand...
A company follows an EPQ model with production rate -180 units per month and a demand of 1,000 units per year the cost for production 35% of annual interest rate 4. 90. Starting the production line has a cost of $950 the holding cost is V hi a) b) Calculate optimal Q Draw the EPQ process and calculate total cycle time and production time use the diagram to get equations
PLEASE DO BY HAND!
DQuestion 12 6 pts Ace Manufacturing produces commercial lawnmowers units in batches. the company estimates the demand for the year is 10,000 units. It costs about $80 to set up the manufacturing process, and the carrying cost is about 70 cents per unit per year. When the production process has been set up, 120 lawnmowers units can be made daily. The demand during the production period is approximately 60 units per day. The company operates its...
2. Montegut Manufacturing produces a product for which the annual demand is 20,000 units. Production averages 80 units per day, while demand is 30 units per day. Holding costs are $5.00 per unit per year, and setup cost is $250.00. (a) If the firm wishes to produce this product in economic batches, what size batch should be used? (b) What is the maximum inventory level? (c) How many order cycles are there per year? (d) What are the total annual...
Annual demand (D and u) is 4,260 tons, and production capacity is 6,000 tons in the roasting plant. Excess inventory has increased operational expense and spatial needs within the Starbucks' production facility. Amie Glaser has decided to introduce Just-In-Time (JIT) manufacturing and has asked you to establish a Quality Involvement Team (QIT) team to reduce the roasting machine's setup cost, economic production quantity, and hence, maximum inventory levels. The unit cost per ton remains at $2,400, and the annual holding...
A company follows an EPQ model with production rate -180 units per month and a demand of 1,000 units per year the cost for production 35% of annual interest rate 4. 90. Starting the production line has a cost of $950 the holding cost is V hi a) b) Calculate optimal Q Draw the EPQ process and calculate total cycle time and production time use the diagram to get equations
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