The Warren W. Fisher Computer Corporation purchases 10,000 transistors each year as components in minicomputers. The...
The Warren W. Fisher Computer Corporation purchases 10,000 transistors each year as components in minicomputers. The unit cost of each transistor is $10, and the cost of carrying one transistor in inventory for a year is 25% of the unit cost. Ordering cost is $20 per order. If the lead time is 4 days, at which inventory level should the manager request a delivery (assume basic EOQ is used and the company operates a total of 250 workdays per year)?
Homework Answers
Annual demand (D) = 10000 units
Number of days per year = 250 days
Average daily demand(d) = D/number of days per year = 10000/250 = 40
Lead time (L) = 4 days
Reorder point = d x L = 40 × 4 = 160 units
So at an inventory level of 160 units the manager should request a delivery
Add Answer to:
The Warren W. Fisher Computer Corporation purchases 10,000
transistors each year as components in minicomputers. The...
E15-3 Mama Leone's Frozen Pizzas uses 50,000 units of cheese per year. Each unit costs $2.50. The ordering cost for the...
E15-3 Mama Leone's Frozen Pizzas uses 50,000 units of cheese per year. Each unit costs $2.50. The ordering cost for the cheese is $250 per order, and its carrying cost is $0.50 per unit per year. Calculate the firm's economic order quantity (EOQ) for the cheese. Mama Leone's operates 250 days per year and maintains a minimum inventory level of 2 days' worth of cheese as a safety stock. If the lead time to receive orders of cheese is 3...
A juice company purchases components from a variety of sources through their global network of suppliers. They are looki...
A juice company purchases components from a variety of sources through their global network of suppliers. They are looking to determine their order quantity for PET bottles. They have forecast their demand for PET bottles for the next year to be 1195295 cases. Being a standard component, sales are expected to be constant/uniform over the course of the year. They operate 5 days per week so each year is made up of 260 days. The lead time for PET bottles...
#1 ArcSite Electrical, which produces generators, purchases a component that is used in its generators directly from the supplier. The generator production operation requires a constant 1,000 compone...
#1 ArcSite Electrical, which produces generators, purchases a component that is used in its generators directly from the supplier. The generator production operation requires a constant 1,000 components per month. It costs S25 to place each order. The unit cost is S2.50 per component, and the quarterly per-component holding cost is 5% of the value of the component. ArcSite operates 250 working days per year and the component supplier has a lead time of 5 days. (a) What is the...
accounts multiple choice The graph below depicts the components of total stock administration costs for an...
accounts multiple choice
The graph below depicts the components of total stock administration costs for an item of inventory Cost(s) Z Quantity (units) Nhat does the point labelled Z represent? Select one: a. Ordering costs b. Storage costs C. The economic order quantity d. Total stock administration costs Total Stock Administration costs under the EOQ model is the sum of: Select one: a. Carrying costs and reorder level costs b. Storage and carrying costs c. Minimum stock costs and reorder...
Kamal Corporation sells 60,000 iPhone covers each year. These covers are sold evenly throughout the year....
Kamal Corporation sells 60,000 iPhone covers each year. These covers are sold evenly throughout the year. Ordering costs are $280 per order, and carrying costs are $2.10 per unit per year. Read the requirements Requirement 1. What is the economic order quantity (EOQ) for ordering the covers? Begin by selecting the formula used to calculate EoQ. (D Demand in units for one year, P Ordering cost per purchase order, C Carrying cost of one unit in stock, Q -Any order...
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...
Michael Chan operates a small desert shop (with 125 ft2 useable floor area) and plans to...
Michael Chan operates a small desert shop (with 125 ft2 useable floor area) and plans to expand the current product line by selling doughnuts. His estimation of the annual demand is 5,000 doughnuts. He has contacted a local wholesaler who can supply frozen doughnuts at $5 each. The delivery lead time is 2 working days. For Dave, the holding cost of each doughnut per year is 10% of the wholesale unit price, and the ordering cost is $50 per order....
Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand =...
Ergonomics Inc. sells ergonomically designed office chairs. The company has the following information: Average demand = 28 units per day Average lead time = 43 days Item unit cost = $63 for orders of less than 330 units Item unit cost = $62 for orders of 330 units or more Ordering cost = $38 Inventory carrying cost = 20% The business year is 250 days Assume there is no uncertainty at all about the demand or the lead time. a....
Can you help with letter b? For letter a I got 93 bottles idk if thats...
Can you help with letter b? For letter a I got 93 bottles idk if thats correct but not sure how to do b? And I know S= R(l+T) where l is lead time which is the 3 days The manager of store Z asks you to help in determining the optimal ordering policy for Truck Stop Honey. The demand for this beer is 35 bottles per day. The store pays a unit cost of $3.50 per bottle and a...
Economic Order Quantity Ottis, Inc., uses 656,100 plastic housing units each year in its production of...
Economic Order Quantity Ottis, Inc., uses 656,100 plastic housing units each year in its production of paper shredders. The cost of placing an order is $24. The cost of holding one unit of inventory for one year is $12. Currently, Ottis places 162 orders of 4,050 plastic housing units per year. Required: 1. Compute the economic order quantity. X units 2. Compute the ordering, carrying, and total costs for the EOQ. Ordering cost $ X Carrying cost Total cost 3....
#1 ArcSite Electrical, which produces generators, purchases a component that is used in its generators directly from the supplier. The generator production operation requires a constant 1,000 components per month. It costs S25 to place each order. The unit cost is S2.50 per component, and the quarterly per-component holding cost is 5% of the value of the component. ArcSite operates 250 working days per year and the component supplier has a lead time of 5 days. (a) What is the...
accounts multiple choice
The graph below depicts the components of total stock administration costs for an item of inventory Cost(s) Z Quantity (units) Nhat does the point labelled Z represent? Select one: a. Ordering costs b. Storage costs C. The economic order quantity d. Total stock administration costs Total Stock Administration costs under the EOQ model is the sum of: Select one: a. Carrying costs and reorder level costs b. Storage and carrying costs c. Minimum stock costs and reorder...
Kamal Corporation sells 60,000 iPhone covers each year. These covers are sold evenly throughout the year. Ordering costs are $280 per order, and carrying costs are $2.10 per unit per year. Read the requirements Requirement 1. What is the economic order quantity (EOQ) for ordering the covers? Begin by selecting the formula used to calculate EoQ. (D Demand in units for one year, P Ordering cost per purchase order, C Carrying cost of one unit in stock, Q -Any order...
Economic Order Quantity Ottis, Inc., uses 656,100 plastic housing units each year in its production of paper shredders. The cost of placing an order is $24. The cost of holding one unit of inventory for one year is $12. Currently, Ottis places 162 orders of 4,050 plastic housing units per year. Required: 1. Compute the economic order quantity. X units 2. Compute the ordering, carrying, and total costs for the EOQ. Ordering cost $ X Carrying cost Total cost 3....
Most questions answered within 3 hours.
-
MATLAB HW 11 problem using Switch Case and Input commands
Write a script file that calculates...
asked 11 minutes ago -
A college student is employed as a door-to-door newspaper
salesman. Historical data suggests that the student...
asked 26 minutes ago -
Considering gravitational time dilation, calculate the time that
passes in Earth’s surface while 1 hour passes...
asked 50 minutes ago -
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 1 hour ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 1 hour ago -
IN PYTHON ONLY !! Program 2: Re-work
program #5 (WeeklyHours) from the previous assignment such that...
asked 2 hours ago -
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 3 hours ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 5 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 5 hours ago -
An empty test tube weighs 15.923 grams. Then,
MgCl2•6H2O is added into the test tube. After...
asked 5 hours ago -
Assume memory access is 10 units of time and disk access is
10000 units of time....
asked 5 hours ago -
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 5 hours ago