A famous tailor of Kimonos for sumo wrestlers uses 50 meters of a special silk each...

 

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A famous tailor of Kimonos for sumo wrestlers uses 50 meters of a special silk each week. This is expensive material, and the cost is 16.250 yen per meter. The silk supplier has a lead time of 2 weeks and the ordering cost are estimated to be 200,000 yen per order due to special processing and inspections. The inventory holding rate is 40% due to high insurance, taxes, and loss of material costs. They currently order using EOQ. • The supplier is offering a discounted price of 15,800 yen per meter if the order size is of 700 meters. The costs per order increase to 250,000 yen and the lead time increases to 3 weeks. • The supplier is offering a discounted price of 14,800 yen per meter if they order once a year. The costs per order increase to 300,000 yen and the lead time increases to 5 weeks. Assume 52 weeks per year. Answer the following: 1. What are the total costs under the current policy and the two discount options? 2. What is the recommend inventory policy? Qopt = 2xSxD CXH R=PXL AHCC x H x Q/2 AOC = SXD/Q APC D x C TC AHC + AOC + APC A famous tailor of Kimonos for sumo wrestlers uses 50 meters of a special silk each week. This is expensive material, and the cost is 16.250 yen per meter. The silk supplier has a lead time of 2 weeks and the ordering cost are estimated to be 200,000 yen per order due to special processing and inspections. The inventory holding rate is 40% due to high insurance, taxes, and loss of material costs. They currently order using EOQ. • The supplier is offering a discounted price of 15,800 yen per meter if the order size is of 700 meters. The costs per order increase to 250,000 yen and the lead time increases to 3 weeks. • The supplier is offering a discounted price of 14,800 yen per meter if they order once a year. The costs per order increase to 300,000 yen and the lead time increases to 5 weeks. Assume 52 weeks per year. Answer the following: 1. What are the total costs under the current policy and the two discount options? 2. What is the recommend inventory policy? Qopt = 2xSxD CXH R=PXL AHCC x H x Q/2 AOC = SXD/Q APC D x C TC AHC + AOC + APC

Answer rating: 100% (QA)

Given information Weekly usage 50 meters Cost per meter 16250 yen Lead time 2 weeks current policy Total costs under the current policy and the two discount options a Current Policy Ordering cost per ... View the full answer