M. P. VanOyen Manufacturing has gone out on bid for a regulator component Expected demand is 725 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering costis $45, and annual holding cost per unit is $6. Baker Mfg. Allen Mfg. Quantity Quantity 1-399 400-799 800+ Unit Price Unit Price 1-499 500-999 1000+ $16.00 15.50 $16.10 15.60 15.10 15.00 a) What is the economic order quantity if price is not a consideration? units (round your response to the nearest whole number).

M. P. VanOyen Manufacturing has gone out on bid for a regulator component Expected demand is 725 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering costis $45, and annual holding cost per unit is $6. Baker Mfg. Allen Mfg. Quantity Quantity 1-399 400-799 800+ Unit Price Unit Price 1-499 500-999 1000+ $16.00 15.50 $16.10 15.60 15.10 15.00 a) What is the economic order quantity if price is not a consideration? units (round your response to the nearest whole number).

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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M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 675 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $55, and annual holding cost per unit is $4. 2 Allen Mfg. Quantity 1-499 500-999 1000+ a) What is the economic order quantity if price is not a consideration? Baker Mfg. Unit Price $16.00 15.50 15.00 Unit Price $16.10 15.60 15.10 units (round your response to the nearest whole number). Quantity 1-399 400-799 800+
M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 725 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $55, and annual holding cost per unit is $4. O Allen Mfg. Quantity 1-499 500-999 1000+ Unit Price $16.00 15.50 15.00 Baker Mfg. Quantity 1-399 400-799 800+ Unit Price $16.10 15.60 15.10 a) What is the economic order quantity if price is not a consideration? 489 units (round your response to the nearest whole number). b) Which supplier, based on all options with regard to discounts, should be used? Allen Mfg. c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? The optimal order quantity is 1000 with a total cost of $ (round your responses to the nearest whole number).
Micro-Electronics Warehouse Headset and Webcam Sale Item Type Reg. Price After Savings Price BuddyChat 200 Headset $34.72 $24.40 BuddyChat 300 Headset $41.27 $34.91 BuddyCam HD Webcam $83.54 $61.46 You have decided to purchase the headset with the greatest markdown percent and the BuddyCam HD webcam in order to take advantage of an "Extra $15 Rebate" offer when you purchase both. What is the markdown percent on your total purchase including the rebate?
2. (Quantity Discount) County Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90 per syringe because of security and theft. The hospital supply firm offers the following quantity discount pricing schedule. Qty 0-9,999 10,000-19,999 20,000-29,999 30,000-39,999 40,000-49,999 50,000+ Price $ 3.40 $ 3.20 $ 3.00 $ 2.80 $ 2.60 $ 2.40 What is best order quantity for syringes that minimize total cost?
2.)Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering. DEMAND Order size Low Medium High 1 lot 12,000 15,000 15,000 2 lots 9,000 25,000 35,000 3 lots 6,000 35,000 60,000 If the owner of Birka Styles & Co is an optimist, how many lots should the manager order?
2.)Birka Styles & Co is introducing a new line of beachwear for their retail stores. The manager needs to decide how many lots of the new beachwear to order for their stores. The marketing came up with a payoff table (see below) considering information about the price, projected sales level, and cost of inventory and ordering. DEMAND Order size Low Medium High 1 lot 12,000 15,000 15,000 2 lots 9,000 25,000 35,000 3 lots 6,000 35,000 60,000 A)If the owner of Birka Styles & Co is an optimist, how many lots should the manager order? B)If the owner of Birka Styles & Co is a pessimist, how many lots should the manager order? C)The owner wants to use minimax regret. How many lots should the manager order?
DETERMINING INVENTORY MODELS FSYHILD is a manufacturing company of made to order face shield. It is producing products at a constant rate with a requirement of 5,500 face shields per quarter throughout the year. If ordering costs are P35.00 per order, unit cost is P10.00 per face shield, and annual inventory holding cost are charged at 30% of the units cost. A. What is the EOQ for this component? B. What is the expected time between orders? C. What are the total annual inventory and holding cost associated with your EOQ recommendation? D. Assuming a lead time of 5 days, what is the reorder point? E. What is the total cost if the management decides to increase the demand by 75%?
M. P. VanOyen Manufacturing has gone out on bid fora regulator component. Expected demand is 700 units per month.The item can be purchased from either Allen Manufacturing orBaker Manufacturing. Their price lists are shown in the table.Ordering cost is $50, and annual holding cost per unit is $5.ALLEN MFG. BAKER MFG.QUANTITY UNIT PRICE QUANTITY UNIT PRICE1–499 $16.00 1–399 $16.10500–999 15.50 400–799 15.601,0001 15.00 8001 15.10a) What is the economic order quantity?b) Which supplier should be used? Why?c) What is the optimal order quantity and total annual cost ofordering, purchasing, and holding the component? PX
M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 700 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $45, and annual holding cost per unit is $4. Allen Mfg. Quantity 1-499 500-999 1000+ Baker Mfg. Unit Price $16.00 15.50 15.00 Quantity 1-399 400-799 800+ Unit Price $16.10 15.60 15.10 a) What is the economic order quantity if price is not a consideration? 435 units (round your response to the nearest whole number). b) Which supplier, based on all options with regard to discounts, should be used? Allen Mfg. c) What is the optimal order quantity and total annual cost of ordering, purchasing, and holding the component? (round your responses to the nearest whole number). The optimal order quantity is ☐ with a total cost of $
3. Fortnex is a company that assembles small household appliances including coffee makers, toasters, and food mixers. The parent company of Fortnex has been concerned about the rising product cost of the finished products, which has led to reduced profit margins. One of the demands of the parent company has been to review the inventory management practices of Fortnex. Two areas which Fortnex is currently investigating are economic order quantity EOQ and ABC analysis. Perform the following. (i) At present the company purchases copper wire for a certain appliance under economic order quantities based on the information given in Table 3-1. The supplier of copper wire is proposing a discount of 5% of unit price if Fortnex purchases in lot sizes of 1000 kg. rather than the calculated EOQ. Determine if Fortnex should take advantage of the price discount. Justify your response. For a particular series of referenced products, the number of units used a year, and the unit cost are as shown in…
Define each of the following terms: c. Economic Ordering Quantity (EOQ); EOQ model; EOQ range
9. A company stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. This company estimates its anDual holding cost for this item to be $25 per unit. The cost to place an order from the supplier is $75. (13 Points) a) Find the economic order quantity (EOQ). b) Find the anmual holding costs. c) The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days. What is the reorder point?