Question: A company will begin stocking remote control devices. Expected monthly demand is 7 5 0 units. The controllers will be purchased from RCD supplier offering
A company will begin stocking remote control devices. Expected monthly demand is units. The controllers will be purchased from RCD supplier offering price breaks for quantities. RCDs price list is given here
Quantity Range
Unit Price
to
to
to
Given that ordering cost is $ and annual holding cost is of unit price per unit, provide the following results:
What is the feasible quantity? Blank
oWhat is the total annual ordering cost at this quantity? $ Blank
oWhat is the total annual holding cost at this quantity? $ Blank
oWhat is the total annual material cost at this quantity? $ Blank
oWhat is the total annual cost at this quantity? $ Blank
What is the most economical quantity to order? Blank
oWhat is the savings in total annual cost at this quantity? $ Blank
FORMAT FOR ENTRIES:
All quantities and costs are in two decimals after the dot. for example
DO NOT ENTER $ sign for costs
If no saving in costs is available ENTER
You are asked to provide the following computation results for the current product:
What run quantity should be used to minimize total annual costs? Blank
What is the length of run time in days? Blank
What is the length of cycle time in days? Blank
During the production, at what rate will inventory buildup? Blank
What is the maximum level inventory can reach? Blank
What is the total annual cost? $ Blank
Suppose to run the new product that needs a minimum of days per cycle between runs of current item.
Can new product be produced with current setting? YES or NO Blank
What would the run size of the current product be needed to just accommodate the new job? Blank
What is the total annual cost in this case? $ Blank
What is the increase in total cost? $ Blank
FORMAT FOR ENTRIES:
Quantities run sizes and inventory buildup rates are INTEGER no decimals
Inventory Levels and Times are in two decimals after the dot. for example
Costs are in two decimals after the dot. for example. DO NOT ENTER $ sign
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