Reference no: EM131105160
Micro-Apple is a manufacturer of personal computers. It currently manufactures a single model-the MacinDOS-on an assembly line at a steady rate of 500 per week. MicroApple orders the floppy disk drives for the MacinDOS (1 per computer) from an outside supplier at a cost of $30 each. Additional administrative costs for placing an order total $30. The annual holding cost is $6 per drive. If MicroApple stocks out of floppy disk drives, production is halted, costing $100 per drive short. Because of the seriousness of stockouts, management wants to keep enough safety stock to prevent a shortage before the delivery arrives during 99 percent of the order cycles. The supplier now is offering two shipping options. With option 1, the lead time would have a normal distribution with a mean of 0.5 week and a standard deviation of 0.1 week. For each order, the shipping cost charged to MicroApple would be $100 plus $3 per drive. With option 2, the lead time would have a uniform distribution from 1.0 week to 2.0 weeks. For each order, the shipping cost charged to MicroApple would be $20 plus $2 per drive.
(a) Use the stochastic continuous-review model presented in Sec. 19.5 to obtain an (R, Q) policy under each of these two shipping options.
(b) Show how the reorder point is calculated for each of these two policies.
(c) Determine and compare the amount of safety stock provided by these two policies.
(d) Determine and compare the average annual holding cost under these two policies.
(e) Determine and compare the average annual acquisition cost (combining purchase price and shipping cost) under these two policies.
(f) Since shortages are very infrequent (and very small when they do occur), the only important costs for comparing the two shipping options are those obtained in parts (d) and (e). Add these costs for each option. Which option should be selected?
|
A newspaper stand purchases newspapers
: A newspaper stand purchases newspapers for $0.36 and sells them for $0.50. The shortage cost is $0.50 per newspaper (because the dealer buys papers at retail price to satisfy shortages).
|
|
What amount should be accrued as a contribution to the esop
: The income tax rate is 30%. What amount should be accrued as a contribution to the ESOP?
|
|
Calculate and plot the two normalized positions
: Calculate and plot the two normalized positions, x/a, where the magnetic fields of the TE10 mode of an empty rectangular waveguide are circularly polarized, for k0 = kc to 2kc .
|
|
Describe the timing of cash flows
: What features of corporate bonds will determine the value of that bond to an investor? Describe the timing of cash flows to the investor and the issuer of the bond?
|
|
A manufacturer of personal computers
: Micro-Apple is a manufacturer of personal computers. It currently manufactures a single model-the MacinDOS-on an assembly line at a steady rate of 500 per week. MicroApple orders the floppy disk drives for the MacinDOS (1 per computer) from an out..
|
|
The corporation experienced an uninsured flood loss
: The corporation experienced an uninsured flood loss (extraordinary) in the amount of $80,000 during the year. The tax rate on this item is 46%.
|
|
Year dividend per share
: NNE Company declared a 5-for-3 stock split last year, and this year its dividend is $3 per share. This total dividend payout represents a 5% increase over last year's pre-split total dividend payout. What was last year's dividend per share?
|
|
What is the isolation if the return loss is 20 db
: What is the isolation if the return loss is 20 dB?
|
|
Use the stochastic continuous-review model
: Jed Walker is the manager of Have a Cow, a hamburger restaurant in the downtown area. Jed has been purchasing all the restaurant's beef from Ground Chuck (a local supplier) but is considering switching to Chuck Wagon (a national warehouse) because..
|