Reference no: EM13944210

You must show your work at arriving at the answers to receive credit. Do so using EXCEL and by submitting this assignment on an EXCEL spreadsheet and attaching the .xlsx file

Put your name, the assignment name (Unit 2 Assignment) and the date submitted at the top.

Separate and number your response to each question so they can be clearly identified.     

 

5.1 bell technologies stocks and sells its own brand of laptop computers. it costs the firm $543 each time it places an order with the manufacturer for laptops the cost carrying one laptop in inventory for a year is $210. the store manager estimates that total annual demand for the computers will be 1,800 units with a constant demand rate throughout the year. Bell's policy is never to have stock outs of the store-brand laptop. the store is open for business seven days per week from 9 a.m to 6 p.m. Determine the following:

a. Optimal order quantity per order

b. minimum total annual inventory costs

c. The number of orders per year

d. the time between orders (in working days)

 

5.4 Mitch's body shop uses a high flammable solvent. it must have the product delivered by special cargo trucks designed for the safe shipment of chemicals. the delivery cost for the solvent is $1,200 each time an order is placed. The solvent is packaged in one-gallon plastics containers. the cost of holding the chemical in storage is $120 per gallon per year. the annual demand for the chemical, which is constant over time, is 1,783 gallons per year. the lead time from the time of order placement until receipt is 14 days. The company operates 250 working days per year. compute the optimal order, quantity, total minimum inventory cost, and reorder point.

 

5.6 The Apple Valley company makes apple butter to supply to local street vendors in Monterey, California. Apple Valley can make 330 pounds of apple butter per day and demand from the street vendors is 190 pounds per day. Each time Apple Valley makes apple butter, it costs $176 to set up the production process. The annual cost of carrying a pound of apples in a refrigerated storage area is $6.50. Determine the optimal order size and the minimum total annual inventory cost.

 

5.15 the following table contains figures on the annual volume and unit costs for a random sample of 10 items from a list of 2,000 inventory items at a health care facility. Please develop an ABC analysis for these items. Also, draw an ABC diagram reflecting your results. How could the purchasing manager use this information?

Item            Annual Usage          Unit Cost

1                  2,400                           $19.51

2                  6,200                             32.60

3                   8,500                            10.20

4                   3,200                              6.80

5                    6,000                             4.50

6                    750                               55.70

7                    8,200                             3.60

8                     9,000                           44.90

9                     5,800                            35.62

10                   820                              82.60

 

5.16 The purchasing manger for Omni Enterprises requested the following data from the accounting department:

Annual demand -$15,500

Cost of placing an order =$180

Annual inventory holding costs = 20 percent

Unit cost =$75

 

a. please calculate the following:

i. The optimal order quantity

ii. the average number of orders

iii. the total annual inventory costs.

b. Suppose the Omni has been arbitrarily ordering 50 times per year. What is the total annual inventory cost?

c. Assume that Omni incorrectly estimates the order cost to be $250 per order. What order quantity will Omni use? What actual inventory costs will be incurred?