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
Q: b. Forward Thinking Limited (FTL) has used a fixed-time period inventory system that involved taking…
A: Find the given details below: Given details: Item Number Annual Usage 1 10700 2 14100 3…
Q: Abdullah records the following monthly purchases and sales of an item. Month Number bought Cost of…
A: Month Number bought Cost of each unit Number sold Opening stock Closing stock/ remaining stock Cost…
Q: A company’s holding cost is 16 percent per year. Its annual inventory turns are 10. Thecompany buys…
A: Formula:
Q: Joe Birra needs to purchase malt for his microbrewery production. His supplier charges $35per…
A: a) Average inventory = 1,000 × 0.5 = 500 average inventory is 500 gal b) Orders = (250 per week ×…
Q: 2. Explain the term complementary products and illustrate using an example. 3. Explain the term…
A: Inventory is the raw and finished products or material that an organization produce to achieve the…
Q: Inventory Holding Costs include O a. Opportunity Cost and Obsolescence Cost O b. Maintenance…
A: d. All (a), (b) and (c)
Q: The EOQ model with quantity discounts attempts todetermine:a) the lowest amount of inventory…
A: The economic order quantity is the ideal order quantity for a company to acquire in order to avoid…
Q: Kendi Company uses 800 units of a product per year on a continuous basis. The product has a Fixed…
A: The detailed solution is given in Step 2.
Q: rt what is the different inventory systems and what is the impact of switching inventory management…
A: As a result, inventory management helps organisations choose which and how much goods to order at…
Q: 4. A beer store uses a (Q. R) inventory system to control its stock levels. For a particularly…
A: Find the given details below: Given Details: Mean 7 Beer Standard deviation 2 Beer Lead…
Q: cost is greater than cost when order quantity is less than EO O a. None of these O b. purchase;…
A: EOQ can be defined as the order quantity which is at an optimal level and which helps in minimizing…
Q: Management Fall20 Chaleej Inc. needs 440 kgs of a material per month. It costs RO 100 to make and…
A: OPTION B IS CORRECT - None is correct
Q: The appropriate level of safety stock is typically determined by:a) minimizing an expected stockout…
A: Material requirements planning (MRP) is a planning, scheduling, and controlling the production of…
Q: Given this information: Lead-time demand 600 pounds Standard deviation of lead time demand 52…
A: Given data,• Lead time demand (dl) = 600 pounds• Standard deviation of demand (Olt) = 52 pounds•…
Q: * 12.17 Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys.…
A: Economic order quantity is a computation that businesses use to determine their optimal order size,…
Q: Given an ordering cost of $200, a holding cost of $2 perunit, and a negligible lead time, examine…
A:
Q: a example 15.I Economic Order Quantity and Reorde nomic order quantity and the reorder point, given…
A: EOQ is short for Economic Order Quantity and gives the exact volume or number of products to reduce…
Q: Your firm uses a periodic review system for all SKUS classified, using ABC analysis, as B or C…
A: EOQ=2DSH=2×21,000×1253=1,750,000=1,322.88 Hence, the EOQ is 1,322.88 units.
Q: he cost of handling goods and cost of transportation by a retailer is called _________________. a.…
A: Handling costs are brought about when a business moves merchandise from capacity and sets them up…
Q: 9. A company stocks a certain switch connector at its central warehouse for supplying field service…
A: periods per year, o 300 Answer 1 Annual demand, D= 15000 Order cost or setup cost, S…
Q: Periodic inventory systems may be appropriate for ________________ a. Both small businesses and big…
A: Periodic inventory systems may be appropriate for ________________ b. Small businesses For the…
Q: Determinetheordering, holding, andtotal inventory costs forthe currentorderquantity. Determine the…
A: EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…
Q: Describe the difference between a fixed-quantity (Q) anda fixed-period (P) inventory system.
A: Fixed order quantity assumes possessions and ability to the utmost and permanent. It will not…
Q: A constant amount is order when inventory reaches a preset level in which of these inventory…
A: The EOQ model accepts that the completed products are sold at consistent rate additional time. At…
Q: Given this information: Expected demand during lead time = 300 units Standard deviation of lead time…
A: The reorder point refers to the point at which an organization realizes the inventory drop at some…
Q: A company will begin stocking remote control devices. Expected monthly demand is 800 units.…
A: Given Information: Supplier A Supplier B Quantity Unit Price Quantity Unit Price…
Q: 1. Assuming that the company will continue purchasing the part: a) The economic order quantity b)…
A: ANSWER 1 IS AS BELOW:
Q: Combate uses 100,000 units of Material X Annually I its production. Ordering cost consists of P1,000…
A: EOQ:- Formula = √(2DS/H) Given:- Demand(D) = 100,000, Ordering cost(S) = P1,000+P4,000 = P5,000,…
Q: 2. A toy manufacturer uses 48,000 rubber wheels per year for its dump truck. The trucks are…
A: Note: - As we can answer only three subparts, we will answer a, b, and c here. If you need solutions…
Q: What trade-offs are involved in each of these aspects of inventory management?b. Treating holding…
A: Treating holding cost as a percentage of unit prices instead as a constant amount: If the unit price…
Q: 2. Atlanta D = 80,000 annual demand 5% holding cost Purchase cost $13.00/unit Ship quantity =…
A:
Q: Explain the detailed steps in an ABC Analysis and illustrate the steps using the example of a…
A: Inventory management is the management in which products are stored, and sell in the market…
Q: 6. A company stocks an item that is consumed at the rate of 20 units each day. Every time an order…
A: The question is related to Inventory Management. The Economic Order Quantity is that level of…
Q: Your company has the following items in inventory: Annual Demand 1200 100 4500 400 35 250 1000 100…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Counting items to ensure an order is correct, is an exampleof:A. stockout costB. carrying costC.…
A: Cost refers to the monetary value of the raw material, equipment, supplies, services, labor,…
Q: entory order is placed when O a. None of these O b. Only when projected or actual on hand stocks are…
A: The correct answer is
Q: 36. The president of Value Filters became very enthusiastic about using EOQS to plan the sizes of…
A:
Q: Explain two usages of the importance of inventory.
A: Inventory management is the process related with operation management which helps to maintain the…
Q: 9. Which of these is NOT in the setup cost calculations? A. economic ordering cost B. Annual…
A: In manufacturing, arrangement cost is the cost caused to prepare gear to deal with an alternate…
Q: Given both the lead time and daily demand are known and constant, then the order point can be…
A: Reorder point (ROP) is the minimum level at which the inventory of a particular product is required…
Q: The stock in the second bin in a two-bin system is equal to O a. 50% of the order quantity O b. None…
A: The correct answer is
Q: A company has the option of purchasing a good ormanufacturing the item. If the item is purchased,…
A: if the item purchased the company charge 25 per unit 25*3000=75000 per order cost 4…
Q: In the basic EOQ model, if annual demand is 125, holding cost is $2.63 (per unit per year), and…
A: Given data is Annual demand = 125 Holding cost = $2.63 per unit per year Total inventory cost =…
Q: 5. Why can it be bad business practice to not maintain adequate inventory? A. Results in high…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Combate uses 100,000 units of Material X Annually I its production. Ordering cost consists of P1,000…
A: EOQ:- Formula = √(2DS/H) Demand (D) = 100,000, Ordering cost (S) = P1,000+P4,000 = P5,000,…
Q: Normal No Spacing Replace Reu Heading 1 Fil Paragraph Styles Editing Reuse Item SKU A3378 has a…
A: Given data: Demand during lead time = 360 units Standard Deviation (σdLT) = 12 Stock out = 10%…
Q: Leaky Pipe, a local retailer of plumbing supplies, faces de-mand for one of its SKUs at a constant…
A: Annual Demand = D = 30,000 units Ordering Cost = O = $10 per order Holding Cost = $1 per unit per…
Q: Discount-Mart, a major East Coast retailer, wants todetermine the economic order quantity (see…
A: Given Information: Annual Demand (D) = 2000 Orderding Cost per order (S) = $ 30 Annual Carrying…
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
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- At Matthews Car Repair, customer demand for a certain brand of motor oil is normally distributed with a mean of 15 gallons and a standard deviation of 6 work-days. To be 95% sure that Compact Car Repair will not run out of oil, we should reorder when motor oil in stock is less than _______ gallons. a. 24.9 b. 22.6 c. 23.7 d. 20uỹ 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 DOLL36. The president of Value Filters became very enthusiastic about using EOQS to plan the sizes of her production runs, and instituted lot sizing based on EOQ values before she could properly estimate costs. For one particular filter line, which had an annual de- mand of 1,800 units per year and which was valued at $2.40 per unit, she assumed a holding cost based on a 30 percent annual interest rate and a setup cost of $100. Some time later, after the cost accounting department had time to perform an analysis, it found that the appropriate value of the interest rate was closer to 20 percent and the setup cost was about $40. What was the additional average annual cost of holding and setup incurred from the use of the wrong costs?
- What is the relationship of the economic order quantityto demand? To the holding cost? To the setup cost?8.A certain good with annual demand of 600 units is priced at $20 per unit. It costs $14 to place each order, and the monthly cost of holding each unit of the good is priced at 7% of the good's unit price. Find the Economic Order Quantity (EOQ) assuming 12 working months in a year. Round your answer to the nearest integer. A. 490 B. 32 C. 110 D. 14114. (**) 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?
- 1)..An electrical parts manufacturer purchases circuit board for manufacturing electrical board at the rate of OMR 20 per piece from a vendar . The requirements of these parts are 1000 per quarterly yearly , if the cost per placement of an order is OMR 10 and inventory carrying charges 10 percent of unit cost yearly Calculate : Solve all the 6 1. The EOQ . 2).No. of opers in a year 3). Time between two successive orders 4).Average yearly cost of Inventory 5).Total inventory cost 6).Total Costb. Given the following information: Expected demund during lead time 300 units Standard devintion of lead time demand 30units Determine the following, assuming that lead time is constant and lead time demand is normally distributed: The ROP that will provide a stockout risk of 1% during lead time The safety stock needed to attain a 1% risk of stockout during lead time Would n stockout risk of 2% require more or less safety stock than a 1% risk? Explain. i. ii. iii. Based on III, would the ROP be larger, smaller or unaffected if the acceptable risk were 2% instead of 1%? Explain iv.Al Fursan Inc. needs 310 kgs of a material per month (four weeks). It costs RO 10 to make and receive an order, and it takes 14 work days to receive it. The annual holding cost is 15 % of purchase price. The price RO 1 per kg. The company is operating 6 days per week. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer Select one: a. 194 b. 188 C. 181 d. 175
- Academic) s Management Fall20 Al Khaleej Inc. needs 440 kgs of a material per month. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it. The annual holding cost is 15 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. What is the expected time (in weeks) between order? Round-up to the nearest integer Select one: O a. 185 O b. None is correct O c. 105 O d. 111 O e, 20704/30/2 Problem #1 - Jasper Inc., a company that sells air conditioning units for cars intends to reduce its total annual inventory cost. The annual demand is expected to be 6,000 units if market conditions are unfavorable, and 9,000 units if market conditions are favorable. The Purchasing & Warehousing Manager estimates that the ordering cost is $20.00 per order and the holding cost is $2.00 per unit per year. a. - Calculate the Economic Order Quantity (EOQ), Annual Ordering Cost, Annual Holding Cost and Total Annuarinventory Cost under unfavorable and favorable market conditions. b. - The Purchasing & Warehousing Manager identified two improvement projects in conjunction with her team: Project A: Reduction of ordering cost to $18.00. Project B: Reduction of holding cost to $1.40 per unit per year. Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Which of the projects would you recommend and why? Show all your calculations.)Haulsee Inc. builds 800,000 golf carts a year and purchases the electronic motors for these carts for $370 each. Ordering costs are $540, and Haulsee's inventory carrying costs average 14% of the inventory value. What is the EOQ for Haulsee? d) Alpha Products maintains a capital structure of 40% debt and 60% common equity. To finance its capital budget for next year, the firm will sell $50 million of 11% debentures at par and finance the balance of its $125 million capital budget with retained earnings. Next year Alpha expects net income to grow 7% to $140