A component used in a manufacturing facility is ordered from an outside supplier. Estimated demand (in thousands) over the next 10 weeks is in the table below. The components cost 55 cents each and the interest rate used to compute the holding cost is 0.5% per week. The fixed order cost is estimated to be $300.   Week 1 2 3 4 5 6 7 8 9 10 Demand 22 34 32 12 8 44 54 16 76 30   Determine the lot sizes using the EOQ lot sizing policy. Determine the lot sizes using the Silver–Meal heuristic. Determine the lot sizes using the least unit cost heuristic.

Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant assify these items according to an ABC classification system? (Round dollar volume to the nearest whole number and percentage of dollar volume to two decimal places.) Item number 2349 should be classified as Item Code 1289 2347 2349 2363 2394 2395 6782 7844 8210 8310 9111 Item number 8210 should be classified as L. Houts Plastics Charlotte Inventory Levels Value ($/unit) 3.75 4.00 2.50 1.50 1.75 2.00 1.15 2.05 1.80 2.00 3.00 Avg. Inventory (units) 400 300 120 18822 75 60 30 20 978 Dollar Volume 6 1,200 300 105 23 25 O % of Dollar Volume 35.59 8.90 14 18 3,372 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics). Based on the…

A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices:  Less than 1000            $5.00 each 1000 to 3999               $4.95 each                   4000 to 5999               $4.90 each 6000 or more               $4.85 each Ordering costs are $50, annual carrying costs per unit are 40 percent of purchase cost, and annual usage is 4900 pulleys.  Determine the order quantity that will minimize total cost.

Reorder PointConsider an economic order quantity case where annual demand D = 1,000 units, economic order quantity Q = 200 units, the desired probability of not stocking out P = .95, the standard deviation of demand during lead time σL = 25 units, and lead time L = 15 days. Determine the reorder point. Assume that demand is over a 250-workday year.

Chris usually sells 120 copies of newspaper each day and believe that sale are normally distributed, with a standard deviation of 15 papers. He pays 70 cents for each paper, which sells $1.25. For each unsold paper, he receives 30-cent credit. a) determine how many papers he should order each day  b) calculate the stockout risk for that quantity.

The demand for a clothing brand is shown in the table below. The cost per order is about $4000. Cost of each unit of clothing = $5. Carrying cost percentage = 25% per item per 5 months. The analysis period = 5 month duration. Month Demand 1 400 2 300 3 200 4 400 5 500 a. Using this data, compute the solutions using the Lot for Lot and Periodic Order Quantity heuristics? Which of these heuristics would perform better and why? b. Assuming that the demand follows a normal distribution with the mean and variance from the data given above, determine the optimal order should be greater or lesser than the single period EOQ model.

GM Electronics expects to sell 800 alarm systems each month of 2022 at R4 000 each. The cost price of eachalarm system is R2 000. The inventory holding cost of an alarm system is 1% of the unit cost price. The cost ofplacing an order for the alarm systems is estimated at R60. Calculate the annual economic order quantity from the information provided below.

Algro Inc. keeps a wide range of parts and materials on hand for use in its production processes. Management has recently had difficulty managing parts inventory as demand for its finished goods has increased; they frequently run out of some critical parts while having an endless supply of others. They would like to classify their parts inventory according to the ABC approach to better control inventory. The following is a list of parts, along with their annual usage and unit value: Item Annual Unit Item Annual Unit Number Usage Cost Number Usage Cost 1 36 $350 2 510 30 3 50 23 4 300 45 5 18 1900 6 500 8 7 710 4 8 80 26 9 344 28 10 67 440 11 510 2 12 682 35 13 1216 95 50 14 10 3 15 820 1 KARAN2222222222 16 60 $610 17 120 20 18 270 15 19 45 50 20 19 3200 21 910 3 12 4750 23 30 2710 24 24 1800 25 870 105 26 244 30 27 750 15 28 45 110 29 46 160 30 165 25 a. Classify the inventory items according to the ABC approach using the dollar value of annual demand. b. Clearly explain why you…

A manager must set up inventory ordering systems for two new production items, P34 and P35.P34 can be ordered at any time, but P35 can be ordered only once every four weeks. The companyoperates 50 weeks a year, and the weekly usage rates for both items are normally distributed. Themanager has gathered the following information about the items.Item P34 Item P35Average weekly demand 60 units 70 unitsStandard deviation 4 units per week 5 units per weekUnit cost $15 $20Annual holding cost 30% 30%Ordering cost $70 $30Lead time 2 weeks 2 weeksAcceptable stockout risk 2.5% 2.5%a. When should the manager reorder each item?b. Compute the order quantity for P34.c. Compute the order quantity for P35 if 110 units are on hand at the time the order is placed.

A company has an annual demand of 16,000 products. The products cost $2 each. Ordering and transport costs amount to $200 per order. The annual cost of holding one product in stock is estimated to be $1.20 . Assume that the company adopts the EOQ as its order quantity and it has to have half of the EOQ as inventory on hand when an order is placed. How many weeks does it take for an order to be delivered to the company? (1 year = 52 weeks) A) PPE may be credited by 2 million dollarsB) Revaluation OCI may be credited by 3,3 million dollarsC) Accumulated depreciation may be debited by 4 million dollarsD) Accumulated depreciation may be credited by 1,3 million dollarsE) Other (Please Specify)