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Problem 1: Economic Order Quantity (10 points) One of the most critical stock items at the...
QUESTION 3 * EOQ no Points Wicker uses 20.000 units per year of a particular item...
QUESTION 3 * EOQ no Points Wicker uses 20.000 units per year of a particular item of inventory purchased for £1. It costs £28 for each order placed with the supplier and the cost of holding a unit of inventory for a year is £1:20. What is: 1. the economic order quantity? 2. the total annual cost of ordering and holding inventories for this business?
2. Joe Henry’s machine shop uses 10,000 brackets during the course of a year. These brackets...
2. Joe Henry’s machine shop uses 10,000 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 10,000 Holding cost per bracket per year $1.75 Order cost per order $22.00 Lead time 4 days Working days per year 250 a. Given the above information, what would be the economic order quantity (EOQ)? b. Given the EOQ, what would be the average inventory? What...
Question 4 A company carries 10 items in stock, each with an economic order quantity of...
Question 4 A company carries 10 items in stock, each with an economic order quantity of $20,000. Through a program of component standardization, the 10 items are reduced to 5. The total annual demand is the same, but the annual demand for each item is twice what it was before. In Chapter 10, we learned that the economic order quantity varies as the square root of the annual demand. Since the annual demand for each item is now doubled, calculate:...
(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...
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....
b) As a contractor to Petronas, East Technology uses 4000 valves for repairing one of Petronas plant every year. These valves are purchased from a supplier 200 km away. The following information...
b) As a contractor to Petronas, East Technology uses 4000 valves for repairing one of Petronas plant every year. These valves are purchased from a supplier 200 km away. The following information is known about the valves Table Q3b: Forecast demand for plastic product Annual demand 4000 Holding cost /valve/vear Order cost/ year RM 9 RM 25 s days Lead time Working days per year 250 Given the above information, calculate i) The economic order quantity (EOQ)? ii) The annual...
Which one of the following is incorrect? 1) The formula for the EOQ (Economic Order Quantity)...
Which one of the following is incorrect? 1) The formula for the EOQ (Economic Order Quantity) is the square root of a fraction, whose numerator is twice the product of the annual item demand and the cost per order, and whose denominator is the product of the unit price and the annual carrying rate. 2) Annual ordering cost is the EOQ multiplied by variable ordering cost. 3) Average inventory on hand is the order size multiplied by half. 4) Annual...
Jony furniture store examines its inventory policy and considers using an economic order quantity (EOQ) approach....
Jony furniture store examines its inventory policy and considers using an economic order quantity (EOQ) approach. They have the following information about a table set: Annual demand Current order quantity Carrying cost Order cost 3,920 sets 80 sets $80.00/set/year $200 a. What is the current total annual cost (TC)? (5 points) b. What is the economic order quantity (EOQ)? [5 points) c. What is the total annual cost at the economic order quantity (EOQ)? [5 points)
3. Calculate the Economic Ordering Quantity (EOQ) model Aa Aa Inventory costs can be categorized as...
3. Calculate the Economic Ordering Quantity (EOQ) model Aa Aa Inventory costs can be categorized as the costs associated with holding the inventory, ordering and receiving the inventory, or running out of the inventory. For example, costs are the direct and indirect costs of keeping inventory on hand. carrying ordering The number of units in the optimal size order is called the economic ordering quantity (EOQ). Jones Company purchases custom-made durable packing boxes to ship its equipment. Each year, Jones...
5 points Consider an item with item cost 100. The cost per order is 75 and...
5 points Consider an item with item cost 100. The cost per order is 75 and holding cost is 30% of the item cost. Daly demand is 10 units. The supplier takes 12 days to deliver the products. Assume that demand is constant. Also assume that working days in a year are 300 1. What shall be economic order quantity? 2. What shall be reorder point to run this inventory system? 3- What shall be total annual cost to run...
QUESTION 3 * EOQ no Points Wicker uses 20.000 units per year of a particular item of inventory purchased for £1. It costs £28 for each order placed with the supplier and the cost of holding a unit of inventory for a year is £1:20. What is: 1. the economic order quantity? 2. the total annual cost of ordering and holding inventories for this business?
Question 4 A company carries 10 items in stock, each with an economic order quantity of $20,000. Through a program of component standardization, the 10 items are reduced to 5. The total annual demand is the same, but the annual demand for each item is twice what it was before. In Chapter 10, we learned that the economic order quantity varies as the square root of the annual demand. Since the annual demand for each item is now doubled, calculate:...
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....
b) As a contractor to Petronas, East Technology uses 4000 valves for repairing one of Petronas plant every year. These valves are purchased from a supplier 200 km away. The following information is known about the valves Table Q3b: Forecast demand for plastic product Annual demand 4000 Holding cost /valve/vear Order cost/ year RM 9 RM 25 s days Lead time Working days per year 250 Given the above information, calculate i) The economic order quantity (EOQ)? ii) The annual...
Jony furniture store examines its inventory policy and considers using an economic order quantity (EOQ) approach. They have the following information about a table set: Annual demand Current order quantity Carrying cost Order cost 3,920 sets 80 sets $80.00/set/year $200 a. What is the current total annual cost (TC)? (5 points) b. What is the economic order quantity (EOQ)? [5 points) c. What is the total annual cost at the economic order quantity (EOQ)? [5 points)
3. Calculate the Economic Ordering Quantity (EOQ) model Aa Aa Inventory costs can be categorized as the costs associated with holding the inventory, ordering and receiving the inventory, or running out of the inventory. For example, costs are the direct and indirect costs of keeping inventory on hand. carrying ordering The number of units in the optimal size order is called the economic ordering quantity (EOQ). Jones Company purchases custom-made durable packing boxes to ship its equipment. Each year, Jones...
5 points Consider an item with item cost 100. The cost per order is 75 and holding cost is 30% of the item cost. Daly demand is 10 units. The supplier takes 12 days to deliver the products. Assume that demand is constant. Also assume that working days in a year are 300 1. What shall be economic order quantity? 2. What shall be reorder point to run this inventory system? 3- What shall be total annual cost to run...
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