(b) (9%) Determine the optimal order quantity of the newspaper vendor based on the given demand distribution. Show all your work clearly.
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Q: Illustrate the economic order quantity model?
A: Economic order quantity or EOQ is the number of goods or inventory a business should order to…
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A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
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Q: The base for inventory in a vertical analysis is:_______
A: Vertical analysis is the corresponding investigation of a budget report, where each detail on a…
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Q: The Wallace Stationary Company purchases paper from the Seaboard Paper Company. Wallace produces…
A: Given, D = Annual Demand Quantity = 1,415,000 sq. yards K = Cost per order for the company = $2,200…
Q: Which of the following is not among the assumptions of the Simple Economic Order Quantity model?…
A: EOQ stands for Economic Order amount. It's an activity employed in the sector of Operations,…
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A: Given, Lead time= 1 week
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A: NOTE: AS PER GUIDELINES, WE ARE ONLY ALLOWED TO DO THE FIRST THREE SUB-PARTS AT A TIME. FOR THE REST…
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A: In the context of the organization, inventory management refers to the technique of placing orders,…
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A: Here the given data is: Weekly average jet fuel demand 80 tons Weekly jet fuel demand standard…
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A: GIVEN, Service level=.99 Order interval(T) = 12 days Lead time (L) = 4 day
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A: The answer is as follows:
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A: The Economic Order Quantity (EOQ) refers to the ideal order quantity that a company should purchase…
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Q: A lot-sizing procedure that orders on a predeterminedtime interval with the order quantity equal to…
A: There are various lot-sizing techniques available for ordering quantities. These are - Static…
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A: Annual demand, D = 200*12 = 2400Unit carrying cost, h = 3.333 (per annum? why not given?)Ordering…
Q: (d) Given the EOQ, what is the total inventory ordering cost? (e) Given the EOQ, what is the total…
A: Below is the solution:-
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A: Given, Annual Demand = 10,000 Holding Cost = $4 Ordering Cost = $35 Item Cost = $10 Lead time = 2…
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Q: 6-27
A: Note- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
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A: Given, Leaflets = 60±15 Branch Operates= 300 days/ year Cost of leaflet = $4 Carrying cost (H)= 20%…
Q: 2. The ABC Company consumes inventory of 67,500 units of components per year. The carrying cost per…
A: Inventory management refers to the process including ordering, storing and using a company's…
Q: offer price concessions in order to attract larger orders. The price structure is shown below. a)…
A: Given that - Purchase Price = $350 Monthly Demand (d) = 400 Units Holding Cost (H) = $35 Ordering…
Q: The stock in the second bin in a two-bin system is equal to Select one: O a. 50% of the order…
A: Two bin system is a technique of inventory control system where first bin is used for minimising…
Q: a) Determine an order quantity that will minimize the Total Cost. b) Figure out the Number of…
A: Economic Order Quantity Model. Economic order quantity (EOQ) models are used. They can lead to…
Q: Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply…
A: we use solver method of transportation to get the cost by using a excel file
Q: a) i. the minimal order quantity of the product from the outside supplier if the product is not…
A: Below is the solution:-
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A: Given data: Demand during lead time = 360 units Standard Deviation (σdLT) = 12 Stock out = 10%…
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A: Note: - Since we can answer only up to three subparts we will answer the first three subparts(a, b,…
Q: The two most important inventory-based questionsanswered by the typical inventory model are:a) when…
A: Here, Option (a) is the correct answer. The two most important inventory-based questions answered by…
Q: A clothing manufacturing company requires raw materials for 8 consecutive weeks as follows: 30, 40,…
A: Solution: Given demand : a) 30, 40, 50, 35, 60, 30, 40, and 30 units Total demand =…
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- In Problem 12 of the previous section, suppose that the demand for cars is normally distributed with mean 100 and standard deviation 15. Use @RISK to determine the best order quantityin this case, the one with the largest mean profit. Using the statistics and/or graphs from @RISK, discuss whether this order quantity would be considered best by the car dealer. (The point is that a decision maker can use more than just mean profit in making a decision.)When you use a RISKSIMTABLE function for a decision variable, such as the order quantity in the Walton model, explain how this provides a fair comparison across the different values tested.Aboloway Company stocks a part that has a daily demand represented by the empirical distribution (shown in the table below). When restocking this part, the average lead time from the supplier is 3 days with a standard deviation of 0.5 days. The plant manager wants to determine how much safety stock to maintain for this part to ensure that stock-outs will not be incurred in more than 5.5% of the order cycles. Daily demand (d) in units Frequency 5 10 10 35 15 65 20 32 25 8 Total Observations = 150 3a. Find the mean and standard deviation for demand. 3b. Based on the information in problems 3 and 3a, what is the mean and standard deviation of demand during the lead time? 3c. Based on the information in problems 3, 3a, and 3b, how much safety stock should the plant manager maintain to ensure that stock-out will not be incurred in more than 5.5% of the order cycles?
- Zack Pop has been a producing plant production manager for the last 10 years. One produce item, zucchini, is sold in cases, with daily sales averaging 400 cases. Daily sales are also assumed to be normally distributed. Furthermore, 85% of the time sales are between 350 and 450 cases. Each case is purchased for $10 wholesale and sells for $15 retail. All cases that are not sold must be discarded. 1) Estimate the standard deviation of the sales distribution. 2) Using the standard deviation found in part a, determine how many cases of zucchini Zach should stock.A shop is planning an order for a popular Christmas festive season product. Demand for the product usually starts from first week of December till first week of January and reduces sharply thereafter. For this reason, and to stimulate sales for leftovers, the product is sold at a significantly reduced price from the second week of January to the fourth week of January. Any leftover after the fourth week of January goes waste. The table below gives past data on total demand for the period from first week of December to first week of January, and from second week of January to fourth week of January, together with their respective chances of occurrence. The product can be purchased at a wholesale price of GHS60 per unit for a pack containing 600 products, GHS57 per unit for a pack containing 800 products, and GHS52 per unit for a pack containing 1000 products. The shop plans to sell the product for GHS80 per unit from first week of December to first week of January, and at a reduced…A shop is planning an order for a popular Christmas festive season product. Demand for the product usually starts from first week of December till first week of January and reduces sharply thereafter. For this reason, and to stimulate sales for leftovers, the product is sold at a significantly reduced price from the second week of January to the fourth week of January. Any leftover after the fourth week of January goes waste. The table below gives past data on total demand for the period from first week of December to first week of January, and from second week of January to fourth week of January, together with their respective chances of occurrence. The product can be purchased at a wholesale price of GHS60 per unit for a pack containing 600 products, GHS57 per unit for a pack containing 800 products, and GHS52 per unit for a pack containing 1000 products. The shop plans to sell the product for GHS80 per unit from first week of December to first week of January, and at a reduced…
- A newsvendor keeps careful records of the number of papers he sells each day and thevarious costs that are relevant to his decision regarding the optimal number of newspapers to purchase. For what reason might his results be inaccurate? What would heneed to do in order to accurately measure the daily demand for newspapers?A retailer has 7 stores in different cities in northern Ontario. The weekly demand for each store follows the normal distribution with a mean value of 60 and a standard deviation of 10. The retailer is planning to use a single centralized store in northern Ontario and they think the demand in the single store will be equal to the sum of the demand in all 7 cities. It takes 3 weeks for the supplier to send the products to the retailer. Calculate the safety stock for the centralized and decentralized cases if the correlation of demands between different cities is 0.3. Assume the planned customer service level is 98%. Please post answer in excel showing formula and answerAn automotive warehouse stocks a variety of parts that are sold at neighborhoodstores. One particular part, a popular brand of oil filter, is purchased by thewarehouse for $1.50 each. It is estimated that the cost of order processing andreceipt is $100 per order. The company uses an inventory carrying charge based on warehouse for $1.50 each. It is estimated that the cost of order processing andreceipt is $100 per order. The company uses an inventory carrying charge based ona 28 percent annual interest rate.The monthly demand for the filter follows a normal distribution with mean280 and standard deviation 77. Order lead time is assumed to be five months.Assume that if a filter is demanded when the warehouse is out of stock, then thedemand is back-ordered, and the cost assessed for each back-ordered demand is$12.80. Determine the following quantities:a. The optimal values of the order quantity and the reorder level.b. The average annual cost of holding, setup, and stock-out associated…
- North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be: D = 77.0 +0.43Q, where Q refers to the sequential quarter number and Q = 1 for winter of Year 1. In addition, the multiplicative seasonal factors are as follows: Quarter Winter Spring Summer Fall In year 26 (quarters 101-104), the energy use for each of the quarters beginning with winter is (round your response to one decimal place): Quarter Winter Factor (Index) 0.80 1.20 1.40 0.60 Spring Summer Fall Energy UseBoston Company use a special part in manufacturing of its finished products. The unit cost thisspecial part is $ 35, and details of its manufacturing cost is as follows. The $35 unit productcost of this part is based on average 25,000 number of parts produced each year.An outside supplier has offered to supply the 25,000 parts at a cost of $30 per part. The specialequipment used to manufacture the above part. This equipment can only be used formanufacturing of this part and if not used it has no resale value.The total amount of general factory overhead, which is allocated based on direct labor-hours,would be unaffected by this decision because it is fixed cost..Suggest the management whether to stop producing internally and buy them from theoutside supplier?Description CAD Direct Materials 10Direct Labor 6Variable overheads…An airline company offers four fairs as shown in the table below. The demand distribution for each fare is normal with mean and standard deviation as given in the table. Find an estimate of the protection levels for the classes using the heuristic EMSR-a. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.