Your supplier gives you a quantity discount if you buy at least 500 units at a time, a price of $4.90. Your ordering cost is $30, and the interest rate is 22% of the unit cost. Annual demand is 2,000, so the EOQ is 334. Calculate the total costs (consisting of holding, ordering, and cost of goods), assuming that you buy at least enough to get the quantity discount.
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Your supplier gives you a quantity discount if you buy at least 500 units at a time, a price of $4.90.
Your ordering cost is $30, and the interest rate is 22% of the unit cost.
Annual demand is 2,000, so the EOQ is 334.
Calculate the total costs (consisting of holding, ordering, and cost of goods), assuming that you buy at least enough to get the quantity discount.
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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.A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they drink coffee. The newspaper costs $1.17 per unit and sells for $1.75 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with μ = 150 and a = 30. (a) What is your recommended daily order quantity for the coffee shop? (Round your answer to the nearest integer.) (b) What is the probability that the coffee shop will sell all the units it orders? (Round your answer to four decimal places.) (c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.) What happens to the coffee shop's order quantity as the rebate is reduced? The higher rebate ---Select-- the quantity that the coffee shop should order.A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they drink coffee. The newspaper costs $1.16 per unit and sells for $1.75 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with ? = 150 and ? = 30. (a) What is your recommended daily order quantity for the coffee shop? (Round your answer to the nearest integer.) (b) What is the probability that the coffee shop will sell all the units it orders? (Round your answer to four decimal places.) (c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.)
- Demand for your product averages 10,000 units per year. Placing an order costs $500. The holding cost per unit per year is 15% of the cost of the item, and items cost $6.00. What is the EOQ?A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they drink coffee. The newspaper costs $1.14 per unit and sells for $1.55 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with µ = 150 and σ = 30. (a) What is your recommended daily order quantity for the coffee shop? (Round your answer to the nearest integer.) (b) What is the probability that the coffee shop will sell all the units it orders? (Round your answer to four decimal places.) (c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.) What happens to the coffee shop's order quantity as the rebate is reduced? The higher rebate ---Select--- ▾ the quantity that the coffee shop should order.As inventory manager, you must decide on the order quantity for an item that has an annual demand of 2,000 units. Placing an order costs you $20 each time. Your annual holding cost, expressed as a percentage of average inventory value, is 20 percent. Your supplier has provided the following price schedule:Minimum Order Quantity Price per Unit1 $2.50200 $2.40300 $2.251,000 $2.00What ordering policy do you recommend?
- You are in charge of inventory control of a highly successful product retailed by your firm. Weekly demand for this item varies, with an average of 350 units and a standard deviation of 15 units. It is purchased from a wholesaler at a cost of $25.00 per unit. The supply lead time is 7 weeks. Placing an order costs $55.00, and the inventory carrying rate per year is 15 percent of the item's cost. Your firm operates 6 days per week, 50 weeks per year. Refer to the standard normal table The table below shows the total area under the normal curve for a point that is Z standard deviations to the right of the mean. Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.0 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359 0.1 0.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5754 0.2 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141…Daily demand for product sample kits is normally distributed with a mean of 35 units and a standard deviation of 4. Supply is virtually certain with a lead time of 9 days. The cost of placing an order is $20, and annual carrying costs for one kit is 25 percent. The price of one kit is $12.50. Assume a year has 365 days.If a 99% service level is desired, what is average inventory on hand? If demand had no variation, what would the reorder point be?your company is facing the situation in which the demand is stochastic but the lead time is known with certainty. Your company has recently implemented a periodic review policy in which your inventory is reviewed every 30 days. The demand is normally distributed with a mean of 600 items annually. The lead time is 25 days, and the annual standard deviation is 100 units. Inventory shows 20 parts in stock. Your company has a policy of 90% service level type I. Also, ordering cost in $20 and holding cost is also $20 per item per year. a) find the order quantity for the next period b) how would your answer change if service level is defined as the expected number of parts available from stock.
- ABC Corporation resells one product to a small isolated community. It has 365 working days. It sells an average of 50 sacks, but may sell as low as 10 sacks and as high as 65 sacks each day. The supplier charges 500 per sack and an additional fixed cost of 1,300 for deliveries. It takes an average of ten days for orders to arrive. Investment in inventory are funded thru debt and equity at a weighted average cost of capital of 14%. How much would the minimum total annual inventory-related costs that ABC would incur if it applies the reorder point and EOQ models?A cable company needs to stock universal remote devices. They expect annual demand to be 1000 and ordering cost is $50. The annual holding cost is 25% of the unit price per unit. In addition, supplier has provided below price schedule. How much quantity would you order to minimize the cost? Show calculations to justify your answer. Quantity Unit Price 1-200 $15.00 201 - 399 $14.00company sells 20,000 radios evenly throughout the year. The cost of carrying one unit of inventory for one year is P8, and thepurchase order cost per order is P32. What is the economic orderquantity