Question: ANSWER QUESTION 4, no need to answer question 3 please, do not use excel. thanks Problem #3: Customers at Joe's Office Supply Store demand an

ANSWER QUESTION 4, no need to answer question 3 please, do not use excel. thanks ANSWER QUESTION 4, no need to answer question 3
Problem #3: Customers at Joe's Office Supply Store demand an average of 7.500 desks per year. Each time an order is placed, an ordering cost of $500 is incurred. The annual holding cost for a single desk is 25% of the $300 cost of a desk. Suppose two weeks elapse between the placement of an order and the arrival of the order. In parts (a)-(e), assume that NO shortages are allowed (a) Each time an order is placed, how many desks should be ordered? (b) How many orders should be placed each year? (c) Determine the total annual costs of meeting the customers' demand for desks. (d) Determine the reorder point. (e) If the lead time were five weeks, what would be the reorder point? (52 weeks - 1 year) (f) How would the answers to part (a) and (b) change if shortages were allowed and a cost of $100 is incurred if Joe's is short one desk for one year? Problem #4 Using the information from Problem #3, suppose Joe's is considering manufacturing desks instead of ordering from the outside suppliers. It costs $400 to set up a production run, and Joe's has the capacity to manufacture up to 10,000 desks per year. (a) What is the optimal production run size? (b) How many production runs will be made each year

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!