esMcGrawHillBoudyA manager must make a decision on shipping. There are two shippers: A and B. Both offer a two-day rate: A for $502, and B for $520.In addition, A offers a three-day rate of $470 and a nine-day rate of $401, and B offers a four-day rate of $455 and a seven-day rate of$436. Annual holding costs are 39 percent of unit price. Four hundred and ten boxes are to be shipped, and each box has a price of$144. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and finalanswers to 2 decimal places.)144HzOption2 days3 days9 daysACostO ship seven-day using Bship four-day using Bship two-day using AO ship two-day using BO ship three-day using AOption2 days4 days7 daysBCostQ Search< PrevL.43 of 3DCNext >

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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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The Uptown Kiln is an importer of ceramics from overseas. It has arranged to purchase a particular type of ceramic pottery from a Korean artisan. The artisan makes the pottery in 120-unit batches and will ship only that exact number of units. The transportation and handling cost of a shipment is $7,600 (not including the unit cost). The Uptown Kiln estimates its annual demand to be 900 units. What storage and handling cost per unit does it need to achieve in order to minimize its inventory cost?
K Ruby-Star Incorporated is considering two different vendors for one of its top-selling products which has an average weekly demand of 30 units and is valued at $100 per unit. Inbound shipments from vendor 1 will average 300 units with an average lead time (including ordering delays and transit time) of 4 weeks. Inbound shipments from vendor 2 will average 490 units with an average lead time of 1 week. Ruby-Star operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. a. The average aggregate inventory value of the product if Ruby-Star used vendor 1 exclusively is $39,000. (Enter your response as a whole number.) b. The average aggregate inventory value of the product if Ruby-Star used vendor 2 exclusively is $ 39,500. (Enter your response as a whole number.) c. How would your analysis change if average weekly demand increased to 60 units per week? The average aggregate inventory value of the product if Ruby-Star used vendor 1…
1. The bottleneck operations for manufacturing the chairs is cutting the woods. It is know that it takes 10 minutes to cutting the woods to make one chair. The company operates 8 hours per day, 20 days per month, what is the monthly capacity of the manufacturing process? 2. A company uses transportation mode analysis to decide whether to choose slower shipping or faster shipping from Portland to Los Angeles using ship connectors. The value of the connectors is $1,200. The holding cost is 10% per year. And the company knows one carrier is 1 day faster but $15 more expensive. Please help the company to make the decision.: whether to choose slower shipping or faster shipping.
Problem 20-10 (Algo) You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day's paper for $0.45 a copy. You sell a copy of San Pedro Times for $1.40. Daily demand is distributed normally with mean = 340 and standard deviation = 68. At the end of each morning, any leftover copies are worthless and they go to a recycle bin. a. How many copies of San Pedro Times should you buy each morning? (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Round your z-value to 2 decimal places and final answer to to 2 decimal places.) 8 Answer is complete but not entirely correct. Optimal order quantity 0.05 b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.) * Answer is complete but not entirely correct. Probability 3 X %
Your options for shipping $100,000 of machine partsfrom Baltimore to Kuala Lumpur, Malaysia, are ( I) use a shipthat will take 30 days at a cost of $3,800 or (2) truck the pa rts toLos Angeles and then ship at a total cost of $4,800. The secondoption will take only 20 days. You are paid via a Jetter of creditthe day the parts arrive. Your holding cost is estimated at 30%of the value per year.a) Which option is more economical?b) What customer issues are not included in the data presented?
Problem 20-10 (Algo) You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.50 a copy. You sell a copy of San Pedro Times for $1.25. Daily demand is distributed normally with mean = 335 and standard deviation = 67. At the end of each morning, any leftover copies are worthless and they go to a recycle bin. a. How many copies of San Pedro Times should you buy each morning? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Round your z-value to 2 decimal places and final answer to to 2 decimal places.) b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.)
TT Beverage Co. is a distributor of beer, wine and soft drinks product. From amain warehouse located in Magusa, TRNC, TT supplies nearly 1000 retail stores withbeverage products. The beer inventory, which constitutes about 40% of the company’stotal inventory, averages approximately 50 000 cases. With an average cost per case ofapproximately 8MU, TT estimates the value of its beer inventory to be 400 000 MU.The warehouse manager has decided to do a detailed study of inventory costsassociated with Sergio Beer, the # 1 selling TT beer. The purpose of the study is toestablish the “how-much to order,” and “when to order” decisions for Segio Beer thatwill result in the lowest possible cost.The manager found that the demand is constant and 2 000 cases/week.The cost ofholding for the TT beer inventory is 25% of the value of the inventory.(Note that definding the holding cost as a % of the value of the product isconvenient, because it is easily transferable to other products)TT is paying 32…
Suppose the Motorboat dealership in part (a) above dealing in costly motorboats follows the policy of carrying a few units in stock and ordering for replenishment as soon as a motorboat is sold from the stock. The unit cost of the motorboat is $60,000 and the holding or carrying cost is $5,000 per unit per year. The management of Motorboat dealership believe that the shortage cost due to waiting for the motorboat is $2,000 per unit short per month. The demand is seen to be Poisson distributed with an average rate of 2 units per month and the replenishment lead time can be considered to be exponential with a mean of one month. Considering the system as an M/M/s queuing system, find the optimal stock to be carried which can minimize the sum total of carrying and shortage costs.
Your options for shipping $103,810 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 29 days at a cost of $3,670, or (2) truck the parts to Los Angeles and then ship at a total cost of $4,970. The second option will take only 18 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30% of the value per year. If you have a third option and it costs only $4,030 and also takes 18 days, what is your most economical plan? The daily holding cost of Alternative 1 is $ (Enter your response rounded to two decimal places.)
9. The Sta. Maria Bar buys draft beer by the barrel from a local distributor. The bar has an annual demand of 900 barrels, which it purchases at a price of $205 per barrel. The annual carrying cost is $24.60, and the cost per order is $160. The distributor has offered the bar a reduced price of $190 per barrel if it will order a minimum of 300 barrels. What is the cost difference if the bar takes the discount?
Super Auto Company rented a warehouse in Halifax, NS to store its engines valued at $500,000. The engines need to be shipped to the Montreal, QC, plant. The annual holding cost rate for auto engine has been estimated at 15%. There are five shipping companies available. Their delivery time and costs are listed in the table below. Which carrier is most economical?Carrier Delivery Time (Days) CostA 20 $500B 15 $800C 12 $1200D 8 $1600E 5 $200
Problem 20-10 (Algo) You are a newsvendor selling San Pedro Times every morning. Before you get to work, you go to the printer and buy the day's paper for $0.30 a copy. You sell a copy of San Pedro Times for $1.10. Daily demand is distributed normally with mean = 265 and standard deviation = 53. At the end of each morning, any leftover copies are worthless and they go to a recycle bin. a. How many copies of San Pedro Times should you buy each morning? (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Round your z-value to 2 decimal places and final answer to to 2 decimal places.) Optimal order quantity b. Based on a, what is the probability that you will run out of stock? (Round your answer to the nearest whole number.) Probability

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