a. Suppose Bruno orders 9750 kg each time. What is his average inventory (in kg)? 4,875 kgs (Round your answer to 1 decimal place.) Suppose Bruno orders 6250 kg each time. How many orders does he place with * his supplier each year? 17.2 orders How many kg should Bruno order from his supplier with each order to minimize the sum of the ordering and holding costs? 2,598 kgs
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- uỹ this policy? 2. Question 14 on page 217 14. A local machine shop buys hex nuts and molly screws from the same supplier. The hex nuts cost 15 cents each and the molly screws cost 38 cents each. A setup cost of $100 is assumed for all orders. This includes the cost of tracking and receiving the orders. Holding costs are based on a 25 percent annual interest rate. The shop uses an average of 20,000 hex nuts and 14,000 molly screws annually. a. Determine the optimal size of the orders of hex nuts and molly screws, and the optimal time between placement of orders of these two items. b. If both items are ordered and received simultaneously, the setup cost of $100 applies to the combined order. Compare the average annual cost of holding and setup if these items are ordered separately; if they are both ordered when the hex nuts would normally be ordered; and if they are both ordered when the molly screws would normally be ordered. 99+ W T DOLL14. (**) Dave's Sporting Goods sells Mountain Mouse freeze-dried meals. Dave's uses a continuous review system to manage meal inventories. Suppose Mountain Mouse offers the following volume discounts to its customers: 1-500 meals: $7 per meal 501 or more meals: $6.50 per meal Annual demand is 2,000 meals, and the cost to place an order is $15. Suppose the holding cost is $2 per meal per year. How many meals should Dave's order at a time? What are the total holding, ordering, and item costs associated with this quantity?5. __________________refers to the benefits of holding some inventory rather than completely depending on the futures market for supply a. Contract yield b. Convenience yield c. Storage benefit d. Holding benefit
- 14. 12 The purchasing manager for the Atlantic Steel Company must determine a policy for ordering coal to operate 12 converters. Each converter requires exactly 5 tons of coal per day to operate, and the firm operates 360 days per year. The purchasing manager has determined that the ordering cost is $80 per order and the cost of holding coal is 20% of the average dollar value of inventory held. The purchasing manager has negotiated a contract to obtain the coal for $12 per ton for the coming year. a. Determine the optimal quantity of coal to receive in each order. (Ans: 1200 tons) b. Determine the total inventory-related costs associated with the optimal ordering policy (do not include the cost of the coal). (Ans: TC= $2880) c. If 5 days of lead time are required to receive an order of coal, how much coal should be on hand when an order is placed? (Ans= R=300 tons)As a student of Operations Management explain to the management of Mukwano Industries Limited (a local manufacturer of household use products) the advantages of holding inventories? (7 marks) Recommend the strategies which Mukwano Industries Limited may use to ensure an effective inventory management (10 marks)13.6. The Ambrosia Bakery makes cakes for freezing and subsequent sale. The bakery, which operates five days a week, 52 weeks a year, can produce cakes at the rate of 116 cakes per day. The bakery sets up the cake-production operation and produces until a predetermined number (Q) has been produced. When not producing cakes, the bakery uses its personnel and facilities for producing other bakery items. The setup cost for a production run of cakes is $700. The cost of holding frozen cakes in storage is $9 per cake per year. The annual demand for frozen cakes, which is constant over time, is 6000 cakes. Determine the following: a. Optimal production run quantity (Q) b. Total annual inventory costs c. Optimal number of production runs per year d. Optimal cycle time (time between run starts) e. Run length in working days
- nagement 2 O Points: 0 of 2 Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $51. The cost of each light is $1.00. The holding cost is $0.05 per light per year. a) What is the optimal size of the production run? 11,200 units (round your response to the nearest whole number). F1 - Calculator Ask my instructor 2 W S -89 7 X H command # m 3 E D 80 F3 C $ 4 R 999 F4 F % R LO 5 V 24 FS T G Part 1 of 4 ^ 6 B MacBook Pro Fo Y H & 7 N 44 F7 U * J 8 DII FO D M ( 9 – K DD F9 O v. < H I ) .O L command 4 F10 P ^. z - : ... Clear all ch S F11 option { [ ? + 1 = 11 I d F12 [ Final check } ] C delete 1 1 return shiftRadovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,200 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $51. The cost of each light is $1.00. The holding cost is $0.15 per light per year. d. What is the total cost per year, including the cost of the lights? (round your response to two decimal places).3. (Ch9) A store has collected the following information on one of its products: Demand = 4,500 units/year Standard deviation of weekly demand = 12 units Ordering costs = $40/order Holding costs = $3/unit/year Cycle-service level = 90% (z for 90% = 1.28) Lead-time = 2 weeks Number of weeks per year = 52 weeks a. If a firm uses the continuous review system to control the inventory, what would be the order quantity and reorder point? b. The firm decided to change to the periodic review system to control the item's inventory. For the most recent review, an inventory clerk checked the inventory of this item and found 300 units. There were no scheduled receipts or backorders at the time. How many units should be ordered? (HINT: Use the EOQ model to derive P, the time between reviews.)
- 44 Periodic inventory systems may be appropriate for ________________ a. Both small businesses and big companies b. Small businesses c. None of the given options d. Big companies Clear my choiceThe operator of a concession at a downtown location estimates that he will sell 470 bags of circus peanuts during a month. Holding costs (annual) are 38 percent of unit price and ordering cost is $14. The price schedule for bags of peanuts is : 1 to 199, $2.5 each; 200 to 499, $2.46 each; and 500 or more $2.39 each. What order size would be most economical ? a. 152 b. 121 c. 534 d. 1551-Providing credit, display products, employ sales people in stores are related to ____________. 2-Goods that are sold by a retailer at a higher price and which are bought infrequently by the customer is called ____________. 3-A fast food outlet uses 220 breakfast paper cartons. The paper pack cost RO 1.100 and the carrying costs are 60% of the cost. The ordering cost is RO 0.150 per order. What is the total inventory costs?