Yellow Press, Inc., buys paper in large rolls for printing. Annual demand (D) for the paper-rolls is 2,75 Yellow Inc. $1,000 to buy a roll..The annual holding cost (H) is 16 percent of the purchase cost of the roll. The cost to place an order (S) is $45. a. If Yellow Inc. want to minimize their total annual inventory costs, they should order rolls at a time. (Enter your response rounded up to the nearest whole number.) b. If Yellow Press Inc. places order as per the EOQ, their total annual inventory cost (i.e. sum of holding costs and ordering costs) is (Enter your response rounded to one decimal place.) c. Assuming 275 workdays per year, if Yellow Press Inc. places order as per the EOQ, the number of orders placed in a year are orders. (Enter your response rounded to one decimal place.) d. Assuming 275 workdays per year, if Yellow Press Inc. places order as per the EOQ, the time between orders is

Yellow Press, Inc., buys paper in large rolls for printing. Annual demand (D) for the paper-rolls is 2,75 Yellow Inc. $1,000 to buy a roll..The annual holding cost (H) is 16 percent of the purchase cost of the roll. The cost to place an order (S) is $45. a. If Yellow Inc. want to minimize their total annual inventory costs, they should order rolls at a time. (Enter your response rounded up to the nearest whole number.) b. If Yellow Press Inc. places order as per the EOQ, their total annual inventory cost (i.e. sum of holding costs and ordering costs) is (Enter your response rounded to one decimal place.) c. Assuming 275 workdays per year, if Yellow Press Inc. places order as per the EOQ, the number of orders placed in a year are orders. (Enter your response rounded to one decimal place.) d. Assuming 275 workdays per year, if Yellow Press Inc. places order as per the EOQ, the time between orders is

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 3,000 rolls. The cost per roll is $1,000, and the annual holding cost is 28 percent of the cost. Each order costs $75. Part 2 a. How many rolls should Yellow Press order at a time? Yellow Press should order enter your response here rolls at a time. (Enter your response rounded to the nearest whole number.) Part 3 b. What is the time between orders? (Assume 200 workdays per year.) The time between orders is enter your response here days. (Enter your response rounded to one decimal place.)
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?
Alocal whole seller for Lipton tea estimates an annual demand of tea at 3900 kgs. It costs RO 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price RO 2 per kg. The company is operating 6 days per week. What is the economic order quantity (EOQ)? Round-up to the nearest integer- O a. 1249 kg O b. 267 kg O c. 395 kg O d. 559 kg O e. None is correct
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?
Annual demand 2,400 units Unit price (`) 2.40 Ordering cost (`) 4.00 Storage cost 2% p.a. Interest rate 10% p.a. Lead time ½ month Calculate EOQ, reorder level and total annual inventory cost. How much does the total inventory cost vary if the unit price is changed to $ 5? Typed and correct answer please. I ll rate accordingly.
Question 1 For supply item ABC, Andrews Company has been ordering 400 units per week. A new purchasing agent has been hired by the company who wants to start using the economic-order- quantity method and its supporting decision elements. She has gathered the following information: Annual demand in units Lead time, in days Ordering costs Insurance and handling costs Purchase price per unit Return on cash investment 20,800 5 $22 $7 $15 15% Required
Suppose that R&B Company has a soft drink product that shows a constant annual demand rate of 3600 cases. Ordering costs are $20 per order and holding costs are $0.77. Find the EOQ. Round to two decimal places. __________________ Find the order cost using the EOQ as the quantity. Round to two decimal places. _________________
Demand for a popular athletic shoe is nearly constant at 1600 pairs per week for a regional division of a national retailer. The cost per pair is $64. It costs $75 to place an order, and annual holding costs are charged at 25% of the cost per unit. The lead time is 3 weeks. One year has 52 weeks.a. What is the Economic Order Quantity?b. What is the reorder point?c. What is the cycle time?d. What is the total annual cost?
A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how much is delivered) and $1.20 per gallon. Annual holding cost is 35% of the price per gallon. Usage is 250 gallons/week. d) If order quantity is 2500 gallons, what is the sum of the ordering and holding costs PER GALLON? e) If orders are for EOQ amount, what is the annual cost of the inventory system as a percentage of the annual purchase cost?
ABC Inc. orders components for distribution at a monthly demand of 900 units. Holding costs are 15% of the unit cost of $23.75. The ordering cost is $47.35. The company operates 240 days per year a. If the company wishes to effectively procure these components, what would be the optional amount to order? [Select] b.. What is the average inventory? [Select] c. How many order cycles are there per year? [Select] d. What are the total cost of managing the inventory? $ [Select] e. What is the total cost, including the cost of the inventory? [Select ] f. What is ABC Inc. decided to order 600 components, what impact would it have on holding costs? [Select] >
What trade-offs are involved in each of these aspects of inventory management?b. Treating holding cost as a percentage of unit price instead of as a constant amount.