Madonna’s Burgers is considering making hamburger buns in-house instead of buying them from its supplier. It has estimated the fixed costs for a used over to be $7,000 and the variable costs for the buns to be $0.25. It purchases buns for $0.50 each, and there are no fixed purchase costs. Its annual demand for buns is forecasted to be 15,000. Madonna’s wants to know how many buns it has to make to break even.
Q: ROP for constant demand and variable lead time. The motel in the preceding example uses approxi-…
A:
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Following are the calculations: EOQ =2*Annual Demand*Ordering CostHolding Cost =2*125000*4009.50…
Q: A local nursery, Greens, uses 1,720 bags of plant food annually. Greens works fifty-two weeks per…
A: Given data: Annual demand, D= 1720 Holding cost, H= $7 Order Cost, O= $12
Q: True or False: Write TRUE if the statement is correct and FALSE if it is incorrect.
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce…
A: Given data: Cost per box = $4 per box Salvage value per box = $1.50 per box Selling price = $10…
Q: a retailer uses fixed time period model with safety stocks. it order a certain product every 14 days…
A: While managing the inventory, there are different approaches. The fixed time period model is also…
Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…
A: Given data Economic Order Quantity (EOQ) 2400 units Ordering cost (S) = $200 Holding or carrying…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Notre: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Fush uses an average of 40 boxes of paper serviettes a day. The restaurant operates 260 days per…
A: Economic order quantity is an inventory management technique which helps to identify the optimal…
Q: A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a…
A:
Q: A plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280…
A: Given Lot size (Q) = 280 drills Average demand(d) = 70 drills/week Lead time (L) = 3 weeks.
Q: Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature…
A: Total carrying cost = (EOQ/2)*H Where, D = annual demand = 5000 H= carrying cost = 10 S = setup cost…
Q: An electronics manufacturer has 25 days-of-supply of inventory for a particular cellphone model.…
A: Inventory turns helps to indicate the demand for the organization's items. If stock turns high, it…
Q: As manager of the St. Cloud Theatre Company, you have decided that concession sales will support…
A: Given, Items selling price variable cost % of revenue. Soft drink $1.00 $ 0.65 25 Wine…
Q: A company manufactures an inexpensive audio card (Audio Max) for assembly into several models of its…
A: D = 95,113 unitsH = 5 Ordering cost = 609p = 2075d = 95113/250 = 380.45
Q: Wholemark is an Internet order business that sells one popular New Year greeting card once a year.…
A: Formula:
Q: The shop sells 5,000 hats. If holding cost is 3$ and cost to place an order is 4. What will be…
A: The formula of calculating the Economic Order Quantity is
Q: Firelands Electronics purchases certain electronic components at $10 per unit from a supplier and…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…
Q: A laundry soap is produced in a production line that has annual capacity of 120,000 cases. The…
A: Production to the process of converting raw materials to finished products. It includes a number of…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: 9). The average number of boxes (if we ignore the safety stock) is simply the EOQ divided by 2…
Q: A small company produce high-tech bicycles for international race teams. The company's fixed cost is…
A: The given data is stated below: The fixed costs per month are 10000 and These fixed costs would be…
Q: The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce…
A: Given information:Price of lettuce (P) = $11 per boxSelling Price of lettuce (SP) = $25 per…
Q: Aunt Molly's Old Fashioned Cookies bakes cookies for retail stores. The company's best-selling…
A: From the given data, to calculate direct material quantity variance, we need the following data.…
Q: Annual demand for a product is 8,840 units; weekly demand is 170 units with a standard deviation of…
A: The re-order point is the point at which the company should purchase the new material or resources…
Q: Wholemark is an Internet order business that sells one popular New Year's greeting card. The cost of…
A: Given data: Selling price (p) = $2.40 Salvage value (V) = 0 Number of city (n) = 1 Mean = 2500…
Q: ATK-Auto obtains one of the critical parts from its sub-constructor located in Belgium. Daily demand…
A: Thank you for posting the question ,As per the policy we will answer the first 3 questions for you,…
Q: A company produces and sells electronic components that are purchased by computer manufacturers. The…
A: A critical input for material requirements planning is a bill of material an extensive list of raw…
Q: A mobile phone producer has fixed costs of 1,5 m $ and variable costs of 800 $. It sells its phones…
A: Break Even Units = Fixed CostsSelling Price + Variable Cost
Q: The local supermarket buys lettuce each day to ensure fresh produce. Each morning any lettuce that…
A: Demand is the total quantity of products and services for which the customers are ready to purchase…
Q: snip
A: Forecasting is a technique that predicts the occurrence of some event in the future. In operations…
Q: The Mcdonald’s fast-food restaurant on campus sells an average of 7,200 quarter pound hamburgers a…
A: d=7200 quarter-pound hamburger/week=7200×4pound/week=28800 poundsAvg. inventory=740 poundscost of…
Q: Manufacturer Distributor E Wholesaler Retailer Last year, the retailer's weekly variance of demand…
A: The bullwhip effect is a phenomenon used in the supply chain where fluctuations in inventory or raw…
Q: Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature…
A: Number of production runs (R) = Annual demand/EOQ
Q: The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any…
A: Given: Cost price = $9 perbox Selling price = $17 per box Salvage price = $5 per box
Q: Last year, the retailer’s weekly variance of demand was 200 units. The variance of orders was 500,…
A: The bull whip impact at any connection in the store network can be determined by the recipe. Bull…
Q: The McDonald’s fast-food restaurant on campus sells an average of 4,000 quarter-pound hamburgers…
A: Inventory turnover is the ratio that explains how many times inventory in a given time duration is…
Q: Retailers Warehouse (RW) is an independent supplier of household items to department stores. RW…
A: Annual demand (D) = 2400 per year Ordering cost (S) = $5 Holding cost (H) = $4 Standard deviation of…
Q: In each of the following, name the term defined or answer the question. Answers are listed at the…
A: 1) Single-period model is the model, which is appropriate to make a one-time purchase of an item. It…
Q: A company wants to produce hardware at a level rate and send 10 units to inventory. If their 6-month…
A: Forecasted demand = 110 units Inventory = 10 units Forecast months = 6
Q: The local supermarket buys lettuce each day to ensure very fresh produce. Each morning, any lettuce…
A: Given data is Cost of lettuce = $4 per box Sales price of lettuce = $10 per box Salvage price =…
Q: A manager must set up inventory ordering systems for two new production items, P34 and P35.P34 can…
A: Given data The z score will be calculated by the ‘=NORMSINV (probability)’ function on the Excel…
Q: Romulo Drugstore sells 10 bottles of Paracetamol syrup Strawberry flavor 60 mL a day, and 15 bottles…
A: Max lead time-10Max sale-15Average lead time-5Average sale-10
Q: 9. XYZ has developed the following data from its Material A Safety stock Average (normally) daily…
A: The detailed solution to both the questions is given in Step 2.
Q: Retailers Warehouse (RW) is an independent supplier of household items to department stores. RW…
A: Annual demand (D) = 2400 per year Ordering cost (S) = $5 Holding cost (H) = $4 Standard deviation of…
Q: ritica
A: Sea transport is a type of water transport. It is best suited for carrying heavy and bulky goods…
Q: 19. What would the average number of boxes be if the safety stock from Part A was kept and the EOQ…
A: Below is the solution:-
Q: Manufacturer Distributor Wholesaler Retailer Last year the retailer's weekly variance of demand was…
A: Given, Demand - 210 units Variance order- 470,610,770,1300 units.
Q: Items purchased from a vendor cost $250 each, and the forecast for next year’s demand is 2,000…
A: Given: Demand = 2000 units Optimal order size Q= 100 And Number of orders per year are calculated…
Q: The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any…
A:
Madonna’s Burgers is considering making hamburger buns in-house instead of buying them from its supplier. It has estimated the fixed costs for a used over to be $7,000 and the variable costs for the buns to be $0.25. It purchases buns for $0.50 each, and there are no fixed purchase costs. Its annual demand for buns is
Step by step
Solved in 2 steps
- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?A manufacturer and a retailer are evaluating to form a supply chain (i.e. to act like a single company). They are currently supplying winter gloves. The manufacturer is producing each pair of winter gloves at $3, and selling each pair to the retailer at $6. The retailer is selling to the customers at $12 per pair. The retailer is philanthropic and donates all unsold winter gloves to a nearby charity home at the end of the season. The customer demand at the retailer is uniformly distributed between 5 and 55. The retailer places only one order per season. Compute the expected profit with and without the supply chain relationship and comment if they should form such a supply chain relationship.Inventory Management You are the store manager at a local branch of DigiLife, a large electronics retail chain. A new version of a popular consumer electronics device called the Amulet is coming out this year. It is your job to sell as many Amulets as you can while minimizing your costs in order to maximize your store's profits. Your Goal Earn $1,000,000 in net profits of Amulet sales.
- Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January February 4,100 4,200 March 3,900 April 4,300 May 4,900 June 4,600 July 5,200 August 4,800 September 5,300 October 5,600 November 6,200 December 5,900Over the past 12 months, Super Toy Mart has experienced a demand variance of 10,250 units and has produced an order variance of 12,050 units. Part 2 a) The bullwhip measure for Super Toy Mart is ______ (round your response to two decimal places). Part 3 b) If Super Toy Mart had made a perfect forecast of demand over the past 12 months and had decided to order 1/12 of that annual demand each month, the bullwhip measure would have been ______ (round your response to the nearest whole number.)Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,000 February 4,100 March 3,800 April 4,200 May 4,850 June 4,500 July 5,150 August 4,750 September 5,250 October 5,550 November 6,150 December 5,850 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast january february march april may june july august september october november december
- Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,000 February 4,100 March 3,800 April 4,200 May 4,850 June 4,500 July 5,150 August 4,750 September 5,250 October 5,550 November 6,150 December 5,850 a. Using linear regression analysis, what would you estimate demand to be for each month next year? Using a spreadsheet, follow the general format in Exhibit 3.7. (picture below)(Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Forecast january february march april may june july august september october november december b. To…Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January 4,120 February 4,220 March 3,920 April 4,320 May 4,920 June 4,620 July 5,220 August 4,820 September 5,320 October 5,620 November 6,220 December 5,920 a. Using linear regression analysis, what would you estimate demand to be for each month next year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. To be reasonably confident of meeting demand, Nina decides to use 3 standard errors of estimate for safety. How many additional units should be held to meet this level of confidence? (Do not round intermediate calculations. Round…Green Gardens' owner has asked your advice about a possible problem at his business. Over the last 6 months the large-sized lawn and garden inventory (ie, tables, chairs, planters, etc.) has appeared to be short. The inventory records that employees use to determine what is on hand show that more inventory is available than can actually be located. This has cause frustration and mis-trust in the inventory records for the sales employees. The owner realizes that the problem is bigger than just frustrated employees. He is afraid that inventory is being stolen, a problem he didn't think possible given that these are large items that are not easily moved. Requirements: Provide the owner with two internal controls that he could implement to reduce the likelihood of theft of the lawn and garden inventory.
- Aling Minda is operating a buy and sell business, she sells broomsticks (walis tingting) in her stall at a local market. She gets her broomsticks from a local supplier for 25 pesos each. She then adds 50 percent mark-up on each broomstick. Every day, aling Minda can sell 30 broomsticks a day. Use the template below and fill in the necessary figures based on the scenario. Remember to use the factors to consider in projecting revenues and refer to tables 1, 2 and 3 as your guide. Table 1 Projected Daily Revenue Name of Business Projected Projected Cost Volume Mark-up Selling Revenue per (D) _% Price (E) Merchandise/ Unit Average No. (B) (C) Products (A) of Items (Daily) Sold (Daily) (B)= (A x (A) (C)= (A+B) (D) (E) =(C x D) .50) Total2. Avondale ice-cream shop in St Catherine's has been buying vegan-custard for its own plant base chunky chocolate passion explosion flavor using EOQ analysis. The supplier has now offered Avondale a discount of $0.50 off all units if the firm will make its purchases monthly or $1.00 off if the firm will make its purchases quarterly. Current data for the problem are: D = 720 units per year; S= $6.00, I= 20% per year; P= $25. (a) What is the EOQ at the current behavior? (b) What is the annual total cost, including product cost, of continuing their current behavior? (c) What are the annual total costs, if they accept either of the proposed discounts? (d) At the cheapest of the total costs, are carrying costs equal to ordering costs? Explain.As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Item Soft Drink Wine Coffee Candy Selling Price $1.00 $2.00 $1.50 $1.00 Variable Cost $0.65 $0.90 $0.30 $0.25 % of Revenue 25 26 30 19 Last year's manager, Scott Ellis, has advised you to be sure to add 10% of variable cost as a waste allowance for all categories. You estimate labor cost to be $300.00 (5 booths with 2 people each). Even if nothing is sold, your labor cost will be $300.00, so you decide to consider this a fixed cost. Booth rental, which is a contractual cost at $50.00 for each booth per night, is also a fixed cost. a) Based on the information available, the per night break-even point in dollars for the St. Cloud Theatre Company = $957.69 (round your response to two decimal places). b) Based on the given information, the per night break-even point in servings for wine =…