ZuoTi.Pro
Question

Sharp, Inc. a company that markets painless hypodermic needles to hospitals, would like to reduce the...

Sharp, Inc. a company that markets painless hypodermic needles to hospitals, would like to reduce
the inventory cost by determining the optimal number of needles to obtain per order. The annual
demand is 1,000 units; the ordering cost is $10 per order and the holding cost per unit per year is
$.50. Calcualte the optimal number of units per order. Then calculate the total cost (storage + order cost).
math   Statistics-And-Probability   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Given:-

D = 1000 units

S = $10 per order

H = $0.5 per unit per year

Calcualte the optimal number of units per order?

Q* = Optimum number of units per order

0 0
Add a comment
Know the answer?
Add Answer to:
Sharp, Inc. a company that markets painless hypodermic needles to hospitals, would like to reduce the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1. The Anderson Palmer Hospital would like to reduce the cost of its inventory by calculating...

    1. The Anderson Palmer Hospital would like to reduce the cost of its inventory by calculating the optimal order size for hypodermic needles. On average, the hospital uses 200 needles per month, the cost of placing an order is $12, and holding cost is estimated to be $1.20 per needle per year. Using the EOQ formula, the optimal order size is: about 60 needles. about 140 needles. about 220 needles. about 310 needles. 2. The Anderson Palmer Hospital would like...

  • Please be clear with the steps of the solution roblem (4: a- A Tayyar company sells...

    Please be clear with the steps of the solution roblem (4: a- A Tayyar company sells Motor casings to other manufacturers, would like to uce its inventory cost by determining the optimal number of Motor casings to obtain per order. The annual demand is 10,000 units, the ordering cost is $ 100 per order and the average carrying cost per unit per year is $ 5.0. 1- Calculate the optimal number of units per order. 2- The relevant total annual...

  • Ye' Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like...

    Ye' Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like to reduce her oak lumber inventory by determining the optimal number of oak boards to order. the annual demand averages 50,000 boards and the order cost is $15.00 per order. Holding cost is estimated to be 10%. the purchase cost of each board is $6.00. The standard deviation of daily demand is 4 boards. The standard deviation of lead time is 2.0 days. Assume...

  • Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation

    Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas’s fastest moving inventory item has a demand of 6000 units per year. The cost of each unit is $100.00, and the inventory carrying cost is $10.00 per unit per year. The average ordering cost is $30.00 per order. It takes about 5 days for an order to arrive, and demand for 1 week is 120 units (this is a...

  • Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24...

    Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each. Annual demand is 7500 fan assemblies, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $60. What is the optimal order quantity (rounded to the nearest integer)? Assuming that the fan assemblies are ordered in quantities equal to the optimal order quanitity, calculate the following: a. Average inventory level b. The...

  • Eagle Insurance is a large insurance company chain with a central inventory operation. The company’s fastest-moving...

    Eagle Insurance is a large insurance company chain with a central inventory operation. The company’s fastest-moving inventory item has a demand of 80,000 units per year. The cost of each unit is $200, and the inventory carrying cost is $15 per unit per year. The average ordering cost is $60 per order. It takes about 2 days for an order to arrive. This is a corporate operation, and there are 250 working days per year. (Please show all work including...

  • Demand for the Deskpro computer at Best Buy is 1,000 units per month. Best Buy incurs...

    Demand for the Deskpro computer at Best Buy is 1,000 units per month. Best Buy incurs a fixed order placement, transportation, and receiving cost of $4,000 each time an order is placed. Each computer costs Best Buy $500 and the retailer has a holding cost of 20 percent. The store manager orders in lots of 200 units for each replenishment order. Calculate: 1.         The number of times the manager should place an order (order frequency) to meet the annual demand.   2.         The...

  • A firm has been ordering a certain item 600 units at a time.   The firm...

    A firm has been ordering a certain item 600 units at a time.   The firm estimates that ordering cost is $200/order, and that annual demand is 1800 units per year. The assumptions of the basic EOQ model are thought to apply.   For what value of holding cost (H: avg $cost of holding one piece for 1 year) would their ordering policy (600 units per order) be economically optimal (be the EOQ)? EOQ = Sq Root[(2D*S)/H]   Where: D...

  • Hami Company sells school ba gs and the annual demand is estima bags. The ordering cost is RM 36 per order and the h...

    Hami Company sells school ba gs and the annual demand is estima bags. The ordering cost is RM 36 per order and the holding cost per is 7% of the unit cost. The cost of each bag is normally RM 40 The supplier offers the following discounts to Hami Company: Order Quantity Discount Unit Cost Below 100 units None RM 40.00 7% RM 37.20 200 units or more (15 Marks) a) What would be the optimal order quantity? (15 Marks)...

  • Practice Problem 1 Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are...

    Practice Problem 1 Custom Computers, Inc. assembles custom home computer systems. The fan assemblies needed are bought for $24 each. Annual demand is 7500 fan assemblies, the annual inventory holding cost rate is $4 per unit, and the cost to place an order is estimated to be $60. Assuming that the fan assemblies are ordered in quantities of 1500 units, calculate the following: a. Average inventory level b. The number of orders placed per year c. The total annual inventory...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT