operations and constantly keeping their service level at 94%. Find the size of Kanban and reorder point.the enterprise will deliver the items within four working days for $100 each order. The enterprise never closes itsFR3 Enterprise has annual demand of 91,250 units and they manufacture via two assembly lines. First line canplaced in a container before being stored in the storeroom with a cost of $0.35 per unit. Once order takes place,produce 350 units and second line produces 40% extra (of first line) per day Half of these finish products wereSUlEXERCISE #11

Answered: operations and constantly keeping their…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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10.5 An SKU has an annual demand of 10,000 units, each costing $20, ordering costs are $80 per order, and the cost of carrying inventory is 25%. Calculate the EOQ in units and then convert to dollars.
Sidney's Quick Shop is a convenience store that is near campus and has regular demand for a locally made energy drink. Daily demand is for 117 bottles and it comes in containers of 48 bottles. There is a 3-day lead time for deliveries. Sidney wants to maintain safety stock of 100 bottles. They want to use a kanban system for ordering. How many kanban containers should they have in their system?
Given the following information, determine the amount to order.d¯ = 30 units per day Desired service level = 99 percentσd = 3 units per day Amount on hand at reorder time = 71 unitsLT = 2 days OI = 7 days
Based on available information, lead time demand for PC jump drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values. Part 2 a) What value of Z should be applied? ▼ 1.28? 2.06? 1.04? or 1.65? Part 3 b) How many drives should be carried as safety stock? ___________ units (round your response to the nearest whole number). Part 4 c) What is the appropriate reorder point? _________ units (round your response to the nearest whole number).
Unaiki manages the inventory for Hine's kids collection. She's had too many stockouts lately and is worried about poor customer service. Therefore, she is considering a change to the current inventory control system for kids track pants. She gathers the following information: average demand: 250 pairs/week lead time: 2 weeks order cost = $75 per/order unit cost: $21.50 carrying charge rate = 18% desired service level = 95% standard deviation of weekly demand: 40 number of weeks per year: 52 Unaiki decides to use a fixed order quantity system. a. What is the Economic Order Quantity? b. What are the total annual order and inventory-holding costs for the EOQ? c. What should the reorder point be to have a 95% service level? d. Help Unaoiki understand her new order logic: In order to stay in stock 95% of the time. she should place an order for ________ pairs when ____________.
Sidney's Quick Shop is a convenience store that is near campus and has regular demand for a locally made energy drink. Daily demand is for 117 bottles and it comes in containers of 48 bottles. There is a 3-day lead time for deliveries. Sidney wants to maintain safety stock of 100 bottles. They want to use a kanban system for ordering. How many kanban containers should they have in their system? Note: Round your answer up to the next highest whole unit.
Firm Tezla produces the product QuickCar. Annual demand for QuickCar is 600 units per year on a continuous basis. The product has inventory holding costs of $30 per unit per year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed. Calculate the economic order quantity (EOQ). a. 77 units b. 110 units c. 60 units d. 44 units
Wood County Hospital consumes 1,000 boxes of bandages per week. The price of bandages is $35 per box, and the hospital operates 52 weeks per year. The cost of processing an order is $15, and the cost of holding one box for a year is 15 percent of the value of the material.a. The hospital orders bandages in lot sizes of 900 boxes. What extra cost does the hospital incur, which it could save by using the EOQ method?b. Demand is normally distributed, with a standard deviation of weekly demand of 100 boxes. The lead time is 2 weeks. What safety stock is necessary if the hospital uses a continuous review system and a 97 percent cycle-service level is desired? What should be the reorder point?c. If the hospital uses a periodic review system, with P = 2 weeks, what should be the target inventory level, T?
Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of 300 days. 33,000 Annual demand for steering wheels Daily demand Daily production (8 hours) Desired lot size (2 hours of production) 110 800 200 Holding cost per unit per year $18 a) What is the setup cost, based on the desired lot size? Setup cost = S 9.41 (round your response to two decimal places). b) What is the setup time, based on $60 per hour setup labour? Setup time = minutes (round your response to two decimal places).
Romulo Drugstore sells 10 bottles of Paracetamol syrup Strawberry flavor 60 mL a day, and 15 bottles on holidays and weekends. It takes 5 days for the supplier to deliver the order; and on peak seasons and certain occasions, the supplier takes 10 days to deliver the ordered items. What should be the safety stock level of the said item? 20 bottles 25 bottles 100 bottles 175 bottles
Justify why a reduction in setup time will result in a reduction in the average amount of inventory held by a business.
“The EBQ and EOQ models are basically the same”, remarked a scholar. Using relevant formulae and diagrams, critique this statement

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