1. A company produces and sells Barbie Toys. The value of a Toy is $15. Average...
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1. A company produces and sells Barbie Toys. The value of a Toy is $15. Average daily demand for the Barbie Toys is 60 toys per day. The performance cycle time for supplying (manufacturing) Barbie Toys is 4 days, where the set-up cost for manufacturing is $30 per manufacturing order and the annual inventory holding cost is 20% of the inventory value. Assume one year is 300 working days and the company does not need any safety stock. Then calculate the followings, given that the orders would be placed in economic order quantities; a. Economic order quantity for the Barbie Toys (5 Points) b. Ordering time for the Barbie Toys in units of products in inventory.. (5 Points) c. The average Toy inventory value (5 Points) d. The time interval between two consecutive orders (5 Points) (5 Points) e. What would be the highest inventory level, if the company would hold a safety stock of 60 units? QUESTIONS (15 Points each) Answer Only 5 Questions. 1. How the "variety of product and the volume of production effects the competency of a manufacturing firm? Explain. 2. How market logistics creates value? Explain. 3. Explain the basic performance criteria of logistics 4. Why the "Postponement operations are employed in some businesses? Explain. 5. What is the difference between "customer satisfaction" and "customer success"? 6. Explain the basic economic principles of transportation. 1. A company produces and sells Barbie Toys. The value of a Toy is $15. Average daily demand for the Barbie Toys is 60 toys per day. The performance cycle time for supplying (manufacturing) Barbie Toys is 4 days, where the set-up cost for manufacturing is $30 per manufacturing order and the annual inventory holding cost is 20% of the inventory value. Assume one year is 300 working days and the company does not need any safety stock. Then calculate the followings, given that the orders would be placed in economic order quantities; a. Economic order quantity for the Barbie Toys (5 Points) b. Ordering time for the Barbie Toys in units of products in inventory.. (5 Points) c. The average Toy inventory value (5 Points) d. The time interval between two consecutive orders (5 Points) (5 Points) e. What would be the highest inventory level, if the company would hold a safety stock of 60 units? QUESTIONS (15 Points each) Answer Only 5 Questions. 1. How the "variety of product and the volume of production effects the competency of a manufacturing firm? Explain. 2. How market logistics creates value? Explain. 3. Explain the basic performance criteria of logistics 4. Why the "Postponement operations are employed in some businesses? Explain. 5. What is the difference between "customer satisfaction" and "customer success"? 6. Explain the basic economic principles of transportation.
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Answer rating: 100% (QA)
a Economic order quantity EOQ can be calculated using the formula EOQ sqrt2 annual demand setup cost annual holding cost Here annual demand average daily demand working days in a year 60 300 18000 toy... View the full answer
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
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