Let X denote the number of bags that are sold in a day. Suppose X approximately...
Let X denote the number of bags that are sold in a day. Suppose X approximately follows a normal distribution with mean 2 and variance 4. Each bag is priced at $110. The shop can get each bag from the supplier at $20 and the ordering cost, regardless of quantity, is $80. The lead time for each order is 7 calendar days. The annual holding cost of each bag is $10. Assuming 365 days in a year, determine the optimal order quantity and reorder point. Assume stock-out cost is $90 (i.e., loss sales).
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Let X denote the number of bags that are sold in a day. Suppose
X approximately...
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)...
Bakery A uses 300 bags of flour each month. The flour is purchased from a supplier...
Bakery A uses 300 bags of flour each month. The flour is purchased from a supplier for a price of $100 per bag and an ordering cost of $10 per order. Bakery A’s annual inventory holding cost is 20% of the item value. Bakery A is required to order an integer multiple of 50 bags. What order quantity should Bakery A use to minimize ordering and holding costs? ____ bags (round up to the nearest integer).
(8 points) A coffee shop sells bags of roasted coffee beans to customers to make into...
(8 points) A coffee shop sells bags of roasted coffee beans to customers to make into coffee at home. The demand for these bags is quite predictable (and can be treated as deterministic for our purposes). The shop sells 3,500 bags of coffee beans per year. Each time the shop places an order for these bags with its coffee supplier, it incurs an administrative cost of $15, independent of the quantity ordered. The company values each bag at $12.50 (this...
A manufacturer keeps a continuous inventory review system on the key component, part X. The annual...
A manufacturer keeps a continuous inventory review system on the key component, part X. The annual demand on part X is 12,000 units and the demand rate is constant. The supplier charges $50 for each unit of part X. Each order costs $150 to process and annual holding cost per unit is 20% of the purchase price. (a) What is the economic order quantity? How many orders will be placed each year (365 days)? If the lead time is 3...
Ollah's Organic Pet Shop sells about 7,000 bags of free-range dog biscuits every year. The fixed...
Ollah's Organic Pet Shop sells about 7,000 bags of free-range dog biscuits every year. The fixed ordering cost is $25, and the cost of holding a bag in inventory for a year is $4.75. Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is (Enter your response rounded to the nearest whole number.) b. Suppose Ollah decides to order 120 bags at a time. What would the...
I need help to solve for the correct answers. Thank you Attempts: I keep the Highest:...
I need help to solve for the correct answers. Thank
you
Attempts: I keep the Highest: 4 1. Problem 23-01 (Economic Ordering Quantity) eBook 1 Problem Walk-Through Economic Ordering Quantity The Gentry Garden Center sells 49,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,200 bags. Each bag costs the firm $0.17, inventory carrying cost is 20%, and the cost of placing an order with its supplier is $17. Assume a 365-day year....
Ollah's Organic Pet Shop sells about 5,000 bags of free-range dog biscuits every year. The fixed...
Ollah's Organic Pet Shop sells about 5,000 bags of free-range dog biscuits every year. The fixed ordering cost is $11, and the cost of holding a bag in inventory for a year is $3.00. Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is (Enter your response rounded to the nearest whole number) b. Suppose Ollah decides to order 260 bags at a time. What would the...
A-E please show excel equations Lokoffee, a specialty coffeehouse in San Antonio, TX., sells Mexican coffee...
A-E please show excel equations
Lokoffee, a specialty coffeehouse in San Antonio, TX., sells Mexican coffee at a fairly steady rate of 4,500 pounds annually. The beans are purchased from a supplier in Chiapas, Mexico for $2.00 per pound Lokoffee estimates that it costs $45 in paperwork and transportation to place and get an order for the coffee, and holding costs are based on a 25% annual interest rate. a. Determine the optimal order quantity for Mexican coffee, in pounds...
Ollah's Organic Pet Shop sells about 6,000 bags of free-range dog biscuits every year. The fixed...
Ollah's Organic Pet Shop sells about 6,000 bags of free-range dog biscuits every year. The fixed ordering cost is $26, and the cost of holding a bag in inventory for a year is $5.00 Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is(Enter your response rounded to the nearest whole number) b. Suppose Ollah decides to order 360 bags at a time. What would the total...
**Please help me understand** Ollah's Organic Pet Shop sells about 4,000 bags of free-range dog biscuits every year. The...
**Please help me understand**
Ollah's Organic Pet Shop sells about 4,000 bags of free-range dog biscuits every year. The fixed ordering cost is $15, and the cost of holding a bag in inventory for a year is $2.00 Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is (Enter your response rounded to the nearest whole number.) b. Suppose Ollah decides to order 200 bags at a...
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)...
Ollah's Organic Pet Shop sells about 7,000 bags of free-range dog biscuits every year. The fixed ordering cost is $25, and the cost of holding a bag in inventory for a year is $4.75. Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is (Enter your response rounded to the nearest whole number.) b. Suppose Ollah decides to order 120 bags at a time. What would the...
I need help to solve for the correct answers. Thank
you
Attempts: I keep the Highest: 4 1. Problem 23-01 (Economic Ordering Quantity) eBook 1 Problem Walk-Through Economic Ordering Quantity The Gentry Garden Center sells 49,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,200 bags. Each bag costs the firm $0.17, inventory carrying cost is 20%, and the cost of placing an order with its supplier is $17. Assume a 365-day year....
Ollah's Organic Pet Shop sells about 5,000 bags of free-range dog biscuits every year. The fixed ordering cost is $11, and the cost of holding a bag in inventory for a year is $3.00. Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is (Enter your response rounded to the nearest whole number) b. Suppose Ollah decides to order 260 bags at a time. What would the...
A-E please show excel equations
Lokoffee, a specialty coffeehouse in San Antonio, TX., sells Mexican coffee at a fairly steady rate of 4,500 pounds annually. The beans are purchased from a supplier in Chiapas, Mexico for $2.00 per pound Lokoffee estimates that it costs $45 in paperwork and transportation to place and get an order for the coffee, and holding costs are based on a 25% annual interest rate. a. Determine the optimal order quantity for Mexican coffee, in pounds...
Ollah's Organic Pet Shop sells about 6,000 bags of free-range dog biscuits every year. The fixed ordering cost is $26, and the cost of holding a bag in inventory for a year is $5.00 Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is(Enter your response rounded to the nearest whole number) b. Suppose Ollah decides to order 360 bags at a time. What would the total...
**Please help me understand**
Ollah's Organic Pet Shop sells about 4,000 bags of free-range dog biscuits every year. The fixed ordering cost is $15, and the cost of holding a bag in inventory for a year is $2.00 Click the icon to view the table of z values. a. What is the economic order quantity for the biscuits? The EOQ is (Enter your response rounded to the nearest whole number.) b. Suppose Ollah decides to order 200 bags at a...
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