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4. Barbara Flynn's company has compiled the data below on a small set of products, Based on the percentages of dollar volume, perform an ABC analysis on her data by completing the table below. Assume that classA items represent about 72% of the total dollar usage, class Babout 23%, class Cless than 5% (round your responses to the nearest whole number). :1 Item Annual Demand Unit Cost Annual Dollar Volume Classication (1) A 150 $160 $24,000 (2) B 140 $130 $18,200 (3) c 300 $250 $ (4) D 250 $200 $ (5) E 50 $80 $ 8. William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 19,000 units/year Ordering cost S $23/order Holding cost H $3/unitlyear a) The EOQ for the workbooks is (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $|:| (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number). 9. If D = 8,400 per month, S = $44 per order, and H = $1.50 per unit per month. a) What is the economic order quantity? The EOQ is units (round your response to the nearest whole number). b) How does your answer change if the holding cost doubles? The EOQ is units (round your response to the nearest whole number). c) What if the holding cost drops in half? The EOQ is units (round your response to the nearest whole number). 10. Southeastern Bell stocks a certain switch connector at its central warehouse for supplying eld service ofces. The yearly demand for these connectors is 15,800 units. Southeastern estimates its annual holding cost for this item to be $25 per unit. The cost to place and process an order from the supplier is $77. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days. a) What is the economic order quantity? units (round your response to the nearest whole number). b) What are the annual holding costs? 35 (round your response to the nearest whole number). c) What are the annual ordering costs? $ {round your response to the nearest whole number). d) What is the reorder point? units (round your response to the nearest whole number). Lead time for one of your fastest-moving products is 23 days. Demand during this period averages 110 units per day. a) What would be an appropriate reorder point? units (enter your response as a whole number). b) How does your answer change if demand during lead time doubles? units (enter your response as a whole number). 0) How does your answer change if demand during lead time drops in half? units (enter your response as a whole number). Chicago's Hard Rock Hotel distributes a mean of1,100 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry rm that has the linen contract requires a 3-day lead time. The hotel expects a 95% service level to satisfy high guest expectations. Refer to the standard normal table' for z-values. a) What is the reorder point? :' towels (round your response to the nearest whole number). b) What is the safety stock? towels (round your response to the nearest whole number). 1: Z-Table Z Pr(Z) 0.38 65 0.50 69 0'67 75 0.84 80 1.04 85 1.28 90 1,41 92 1.56 94 165 95 1.75 96 2.06 98 233 99 13. Agourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 73 pounds of Kona coffee beans 3 day. (Demand can be assumed to be distributed normally with a standard deviation of 15 pounds per day). After ordering (xed cost = $13 per order), beans are always delivered from Hawaii in exactly 4 days. Per-pound annual holding costs for the beans are $4. Refer to the standard normal table2 for z-values. a) What is the economic order quantity (EOQ) for Kona coffee beans? pounds (round your response to the nearest whole number). b) What are the total annual holding costs of stock for Kona coffee beans? $ (round your response to two decimal places). c) What are the total annual ordering costs for Kona coffee beans? $ (round your response to two decimal places). d) Assume that management has specied that no more than a 1% risk of stockout during lead time is acceptable. What should the reorder point (ROP) be? pounds (round your response to two decimal places). e) What is the safety stock needed to attain a 1% risk of stockout during lead time? pounds (round your response to two decimal places). f) What is the annual holding cost of maintaining the level of safety stock needed to support a 1% risk? $ (round your response to two decimal places). g) If management specied that a 2% risk of stockout during lead time would be acceptable. the safety stock holding costs will (1) 2: Z-Table z Pr(Z) 0.38 65 0.50 69 0.67 75 0.84 80 1.04 85 1.28 90 1.41 92 1.56 94 1.65 95 1.75 96 1.88 97 2.06 98 2.33 99 (1) O not change O decrease 0 increase 16. Jantel Mitchell's bakery prepares all its cakes between 4 A.M.and 6 A.M.so they will be fresh when customers arrive. Day-old cakes are virtually always sold. but at a 50% discount off the regular $16 price. The cost of demand is estimated to be normally distributed, with a mean of 25 and a standard deviation of 6. What is the optimal stocking level? Refer to the standard normal table3 for Zvalues. The optimal stocking level for the bakery is 3: Standard Normal Table cakes (round your response to the nearest whole number), Paper size 'Letter V m The table below shows the total area under the normal curve for a point that is 2 standard deviations to the right of the mean. Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.0 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359 0.1 0.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5754 0.2 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141 0.3 0.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.6517 0.4 0.6554 0.6591 0.6628 0.6664 0.6700 0.6736 0.6772 0.6808 0.6844 0.6879 0.5 0.6915 0.6950 0.6985 0.7019 0.7054 0.7088 0.7123 0.7157 0.7190 0.7224 0.6 0.7258 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7486 0.7518 0.7549 0.7 0.7580 0.7612 0.7642 0.7673 0.7704 0.7734 0.7764 0.7794 0.7823 0.7852 0.8 0.7881 0.7910 0.7939 0.7967 0.7996 0.8023 0.8051 0.8079 0.8106 0.8133 0.9 0.8159 0.8186 0.8212 0.8238 0.8264 0.8289 0.8315 0.8340 0.8365 0.8389 1.0 0.8413 0.8438 0.8461 0.8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.8621 1.1 0.8643 0.8665 0.8686 0.8708 0.8729 0.8749 0.8770 0.8790 0.8810 0.8830 1.2 0.8849 0.8869 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980 0.8997 0.9015 1.3 0.9032 0.9049 0.9066 0.9082 0.9099 0.9115 0.9131 0.9147 0.9162 0.9177 1.4 0.9192 0.9207 0.9222 0.9236 0.9251 0.9265 0.9279 0.9292 0.9306 0.9319 1.5 0.9332 0.9345 0.9357 0.9370 0.9382 0.9394 0.9406 0.9418 0.9430 0.9441 1.6 0.9452 0.9463 0.9474 0.9485 0.9495 0.9505 0.9515 0.9525 0.9535 0.9545 1.7 0.9554 0.9564 0.9573 0.9582 0.9591 0.9599 0.9608 0.9616 0.9625 0.9633 1.8 0.9641 0.9649 0.9656 0.9664 0.9671 0.9678 0.9686 0.9693 0.9700 0.9706 1.9 0.9713 0.9719 0.9726 0.9732 0.9738 0.9744 0.9750 0.9756 0.9762 0.9767 2.0 0.9773 0.9778 0.9783 0.9788 0.9793 0.9798 0.9803 0.9808 0.9812 0.9817 2.1 0.9821 0.9826 0.9830 0.9834 0.9838 0.9842 0.9846 0.9850 0.9854 0.9857 2.2 0.9861 0.9865 0.9868 0.9871 0.9875 0.9878 0.9881 0.9884 0.9887 0.9890 2.3 0.9893 0.9896 0.9898 0.9901 0.9904 0.9906 0.9909 0.9911 0.9913 0.9916 2.4 0.9918 0.9920 0.9922 0.9925 0.9927 0.9929 0.9931 0.9932 0.9934 0.9936 2.5 0.9938 0.9940 0.9941 0.9943 0.9945 0.9946 0.9948 0.9949 0.9951 0.9952 2.6 0.9953 0.9955 0.9956 0.9957 0.9959 0.9960 0.9961 0.9962 0.9963 0.9964 2.7 0.9965 0.9966 0.9967 0.9968 0.9969 0.9970 0.9971 0.9972 0.9973 0.9974 2.8 0.9974 0.9975 0.9976 0.9977 0.9977 0.9978 0.9979 0.9980 0.9980 0.9981 2.9 0.9981 0.9982 0.9983 0.9983 0.9984 0.9984 0.9985 0.9985 0.9986 0.9986 3.0 0.9987 0.9987 0.9987 0.9988 0.9988 0.9989 0.9990 0.9989 0.9990 0.9990 .1. . , W 17. University of Florida football programs are printed 1 week prior to each home game. Attendance averages 90,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $4 each. Unsold programs are sent to a recycling center that pays only 20 cents per program, The standard deviation is 5,000 programs, and the cost to print each program is $1. Refer to the standard normal table\" for z-values, a) What is the cost of underestimating demand for each program? C5 = $ (round your response to two decimal places). b) What is the overage cost per program? C o $ (round your response to two decimal places). c) How many programs should be ordered per game? d) What is the stockout risk for this order size? Stockout risk = 4: Standard Normal Table (round your response to four decimal places). programs should be ordered per game (round your response to the nearest whole number). The table below shows the total area under the normal curve for a point that is Z standard deviations to the right of the mean. Z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.0 0.5000 0.5040 0.5080 0.5120 0.5160 0.5199 0.5239 0.5279 0.5319 0.5359 0.1 0.5398 0.5438 0.5478 0.5517 0.5557 0.5596 0.5636 0.5675 0.5714 0.5754 0.2 0.5793 0.5832 0.5871 0.5910 0.5948 0.5987 0.6026 0.6064 0.6103 0.6141 0.3 0.6179 0.6217 0.6255 0.6293 0.6331 0.6368 0.6406 0.6443 0.6480 0.6517 0.4 0.6554 0.6591 0.6628 0.6664 0.6700 0.6736 0.6772 0.6808 0.6844 0.6879 0.5 0.6915 0.6950 0.6985 0.7019 0.7054 0.7088 0.7123 0.7157 0.7190 0.7224 0.6 0.7258 0.7291 0.7324 0.7357 0.7389 0.7422 0.7454 0.7486 0.7518 0.7549 0.7 0.7580 0.7612 0.7642 0.7673 0.7704 0.7734 0.7764 0,7794 0.7823 0.7852 0.8 0.7881 0.7910 0.7939 0.7967 0.7996 0.8023 0.8051 0,8079 0.8106 0.8133 0.9 0.8159 0.8186 0.8212 0,8238 0,8264 0.8289 0.8315 0.8340 0.8365 0.8389 1.0 0.8413 0.8438 0.8461 0,8485 0.8508 0.8531 0.8554 0.8577 0.8599 0.8621 1.1 0.8643 0.8665 0.8686 0,8708 0.8729 0.8749 0.8770 0.8790 0.8810 0.8830 1.2 0.8849 0.8869 0.8888 0.8907 0.8925 0.8944 0.8962 0.8980 0.8997 0.9015 1.3 0.9032 0.9049 0.9066 0,9082 0.9099 0.9115 0.9131 0.9147 0.9162 0.9177 1.4 0.9192 0.9207 0.9222 0.9236 0.9251 0.9265 0.9279 0.9292 0.9306 0.9319 1.5 0.9332 0.9345 0.9357 0.9370 0.9382 0.9394 0.9406 0.9418 0.9430 0.9441 1.6 0.9452 0.9463 0.9474 0.9485 0.9495 0.9505 0.9515 0.9525 0.9535 0.9545 1.7 0.9554 0.9564 0.9573 0.9582 0.9591 0.9599 0.9608 0.9616 0.9625 0.9633 1.0 0.9641 0.9649 0.9656 0.9664 0.9671 0.9678 0 9686 0 9693 0 9700 0 9706