Question: Problem 1: (10 Points) A company decides to establish an EOQ for an item. The annual demand is 200,000 units. The ordering costs are $40

Problem 1: (10 Points) A company decides to establish an EOQ for an item. The annual demand is 200,000 units. The ordering costs are $40 per order, and inventory-carrying costs are $2 per unit per year. Calculate the following: (a). The EOQ in units. (b). Number of orders per year. (c). Annual ordering cost, annual holding cost, and annual total cost Problem 2: (10 Points) Given this information: - Expected demand during lead time =400 units - Standard deviation of lead time demand =50 units Assuming that lead time demand is distributed normally. The risk of stockout is 1 percent during lead time. (a) What amount of safety stock is appropriate? (b) Calculate ROP

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!

The Runners Shop (TRS) was a family-owned business founded 17 years ago by Robert and Andrea Johnson. In July of 2008, TRS found itself experiencing a severe cash shortage that forced it to file for...

Can someone check if my work is done right? thank you This homework set has 3 Problems. The total credit for this homework set is 20 . Please write down your name, ID, and section number on the...

Problem 1: (10 Points) A company decides to establish an EOQ for an item. The annual demand is 200,000 units. The ordering costs are $40 per order, and inventory-carrying costs are $2 per unit per...

A company decides to establish an EOQ for an item. The annual demand is 200,000 units. The ordering costs are $40 per order, and inventory-carrying costs are $2 per unit per year. Calculate the...

A company decides to establish an EOQ for an item. The annual demand is 100,000 units. The ordering costs are $50 per order, and inventory-carrying costs are $4 per unit per year. Calculate the...

A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $8, ordering costs are $32 per order, and inventory-carrying costs are 20%. Calculate the...

A company decides to establish an EOQ for an item. The annual demand is 5 0 0 , 0 0 0 units, each costing $ 1 7 , ordering costs are $ 4 0 per order, and inventory carrying costs are 1 8 % ....

Refer to problem 10.3. The supplier offers a 2% discount on orders of 5000 units. Calculate the purchase cost, the cost of ordering, the cost of carrying, and the total cost if orders of 5000 are...

A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $9, ordering costs are $35 per order, and inventory carrying costs are 22%. Calculate the...

Jack, the owner of Jack's warehouse, decides to establish an EOQ for an item. The annual demand is 4,000 units and each unit costs $10. The ordering costs are $35 per order and inventory-carrying...

Manpreet Kaur: Attempt 1 Question 15 (1 point) Jack, the owner of Jack's warehouse, decides to establish an EOQ for an item. The annual demand is 4,000 units and each unit costs S10. The ordering...

On May 14 2014 Lennon realized a 106800 before taxes insurance gain on the expropriation of investments originally purchased in 2000 On December 31 2014 Lennon recorded net income of 338400 before...

Suppose a random variable, x, has a uniform distribution with a = 5 and b = 9. a. Calculate P(5.5 x 8). b. Determine P (x > 7). c. Compute the mean, , and standard deviation, , of this random...

Describe a successful change from your own experience and why it worked well. Describe an unsuccessful change from your own experiences and why it did not achieve its intended objectives. What do you...

Rodgers Corporation reported basic earnings per share of $1.25 for the year ended December 51, 2016. Rodgers had 8,000 shares of cumulative, nonconvertible $100 par, 12% preferred stock outstanding...

Selected transactions for Essex Company during July of the current year are listed in Problem 5-3B. In Problem 5-3B. The following were selected from among the transactions completed by Essex Company...

Crittenden Cellular enters into a contract to supply Joe's Country Corner Store with 10 smart phones at a price of $45 per phone on March 4, 2017. The phones will be delivered to Joe's on March 15,...

Put the four levels of the IFRS literature hierarchy in correct order (use 1, 2, 3, 4): Level Authoritative Literature _____________ Recent pronouncements of other standard- setting bodies that use a...

At the beginning of 2011, Hardin Company had 220,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock: March 1 Issued...

TOTAL QUALITY MANAGEMENT Section B Answer any two questions in this section 1. The University of Professional Studies, Accra wants to use Evans and Lindsey (1996) service dimensions as an improvement...

Chapter 10 stated that proximity and similarities are the two most significant influences on initial romantic attraction. Does this statement hold true for the online relationship between Chris and...

Whether there is a sufficient showing of employee interest to justify an election.

Whether the board has jurisdiction to conduct an election.