then EOQ is 1,316.56. True or False
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If annual sales in are 65,000 units, price per unit is $25, carrying costs are 30%, and fixed costs per order is $100, then EOQ is 1,316.56.
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- Annual demand= 360 units Holding cost per year = 1 $ per unit Ordering cost = $ 100 per order Compute EOQ , total cost(holding and ordering cost),no of order per year and expected time (days) between orders(Assuming a 300-day work ) and what would the actual total holding and ordering costs be if the annual demand was actually higher than estimated i.e 500 units instead of 360 units, but the EOQ established above is used. If demand for an item is 3 units per day, and delivery lead time is 15 days, what would be the re-order point?A certain type of chair costs $10, and the annual carrying cost rate is 0.20. Annual demand is 12, and the purchase order cost is $3 per order What is the economic order quantityGiven Information Service Level - 95% (z value= 1.6649) Order Cost - $125Order Cycle (weeks) - 4, 5, 6, 7, 8Lead Time (weeks) - 2 weeksOperating Time - 52 weeks Standard deviation = 69.3237 Variable Holding Cost - 12.019% Fixed Holding Cost - 1,659,317.307 COMPUTE FOR ECONOMIC ORDER QUANTITY (EOQ) PER ORDER CYCLE. THANK YOUUUUU
- Hi Tech Corporation (HTC) expects to order 295,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $300 per order; the purchase price per chip is $32; and the firm’s inventory carrying costs is equal to 18 percent of the purchase price. EOQ=2309.75. If HTC is able to negotiate a reduction in the fixed ordering costs to $250.00 per order, but HTC decides to carry a safety stock of 28 days of memory chip sales. With the reduced fixed ordering cost and the increased average inventory due to the safety stock carried, what is the additional total inventory costs due to the decision to balance out uncertainty by carrying the specified safety stock?Wood County Hospital consumes 500 boxes of bandages per week. The price of bandages is $70 per box. The cost of processing an order is $60, and the cost of holding one box for a year is 15% of the value of the material. Assume 52 weeks per year. a) The hospital orders bandages in lot sizes of 900 boxes. What extra costs does the hospital incur, which it could save by applying the EOQ concept? b) Demand is normally distributed with a standard deviation of weekly demand being 100 boxes. The lead-time is 1/2 week. What safety stock is necessary if the hospital uses continuous review inventory system, and a 97% service level? What should the reorder point be?Given Information Service Level - 95% (z value= 1.6649) Order Cost - $125Order Cycle (weeks) - 4, 5, 6, 7, 8Lead Time (weeks) - 2 weeksOperating Time - 52 weeks Standard deviation = 69.3237 Variable Holding Cost - 12.019% Fixed Holding Cost - 1,659,317.307 QUESTION: Compute for annual variable holding cost. Formula Given: (EOQ/2) x (Unit cost x Percentage Value of Inventory)
- Please do not give solution in image format thanku Yuliia is Guest Experience Director at the Lego store. Daily demand averages 450 kits, with a standard deviation of 50 kits. Lead time to receive new shipments is 12 days. Currently, the store policy is to have a level of service of 99.65%. How many units of safety stock will they need to carry? NOTE: This question is asking for SAFETY STOCK, not Reorder Point.Please do not give solution in image format thanku Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering tape is $1 per order, and carrying costs are 40 cents per roll a year. Lead-time is three days. a) Ignoring the demand uncertainty (i.e., looking only at average values), find the economic order quantity (EOQ) and the reorder point (ROP). b) Consider now the uncertainty. The order quantity remains the same. If the target is to have a 99% annual service level, what should be the ROPGiven the following information, compute the economic order quantity, annual holding cost, annual order cost, and annual total inventory cost. Annual requirements (R) = 50,000 units Order cost (S) = $150 per order Holding rate (k) = 15% Unit cost (C) = $100 per unit
- 20. A large law firm uses a constant 50 reams of copier paper per day. The lead timefor the paper is approximately normal, averages 9 days, and has a standard deviationof 3 days. What reorder point provides a service level of 90%?Discount-Mart, a major East Coast retailer, wants todetermine the economic order quantity (see Chapter 12 for EOQformulas) for its halogen lamps. It currently buys all halogenlamps from Specialty Lighting Manufacturers in Atlanta. Annualdemand is 2,000 lamps, ordering cost per order is $30, and annualcarrying cost per lamp is $12. a) What is the EOQ?b) What are the total annual costs of holding and ordering(managing) this inventory?c) How many orders should Discount-Mart place with SpecialtyLighting per year?XYZ Pharmaceuticals sells COVID testing kits. Calculate the Economic Order Quantity, or EOQ, if annual demand is 20,000 testing kits, inventory storage costs average 20 percent, the unit price per kit is $50, and ordering costs are $25.