Reference no: EM131438944
Westside Auto purchases a component used in the manufacture of automobile generators directly from a supplier. Westside’s generator production operation, which is operated at a constant rate, will require 1000 components per month throughout the year (12,000 total units annually). Assume that the ordering costs are $25 per order, the unit cost is $2.50 per component, and annual holding costs are 20% of the value of inventory. Westside has 250 working days per year and a lead time of 5 days. Please report out the following information:
D = 12000, S = $25, Unit Cost = $2.50, H = $0.5
What is the EOQ for this component?
EOQ = Sqrt (2DS/H) = 1095.45
What is the reorder point?
Demand Per day = 48 (12000/250)
So, reorder point = Daily demand x Lead time = 48 x 5 = 240 units
What is the cycle time?
Cycle time = EOQ/Demand per day = 22.82 days
What are the total annual holding and ordering costs associated with your recommended EOQ?
Total holding cost = (EOQ/2) x H = $273.86
Total Ordering cost = (D/EOQ) x S = $273.86
Total Cost = $273.86 + $273.86 + Carrying cost (2.5 x 12000) = $30547.72
NEED REMAINING ANSWERS FROM HERE
Now, suppose Westside Auto decides to operate with a backorder inventory policy. Backorder costs are estimated to be $5 per unit per year. Identify the following:
e) Minimum cost order quantity
f) Maximum number of backorders
g) Maximum inventory
h) Cycle time
i) Total annual cost
Which approach would you recommend to Westside Auto, using back orders or not? Why?
2. Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7200 copies. The cost of one copy of the book is $14.50. The holding cost is based on an 18% annual rate, and production setup costs are $150 per setup. The equipment on which the book is produced has an annual production volume of 25,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. Use the production lot size model to compute the following:
a) Minimum cost production lot size
b) Number of production runs per year
c) Cycle time
d) Length of a production run
e) Maximum inventory
f) Total annual cost
g) Reorder point
|
Wirte an argument essay
: The issue and conclusion for this argument is quite simple. You will be choosing one of the executive orders signed by President Trump and then identifying two arguments concerning that order: one in favor of, and one in opposition.
|
|
Describe the social impacts of water scarcity
: Describe the social impacts of water scarcity in an economically lesser developed country. How could information gleaned from this case study be used to address water concern issues in another location or country?
|
|
Based on the p&g and brl hardy cases
: Based on the P&G and BRL Hardy cases, Do you think that the SKII product and the BRL Hardy wine can be sold successfuly in India. Why? Why not?
|
|
Four major forms of performance-based pay
: Please discuss, from the perspectives of employees, the major disadvantages of the four major forms of performance-based pay (recognition, merit, incentives, earning at risk).
|
|
Manufacture of automobile generators directly from supplier
: Westside Auto purchases a component used in the manufacture of automobile generators directly from a supplier. Westside’s generator production operation, which is operated at a constant rate, will require 1000 components per month throughout the year..
|
|
Provide a brief introduction identifying the dms disorder
: As part of your course project, you will conduct field research on the practice related to your selected disorder. In your field research, you will interview a mental health professional to learn about the practice related to diagnosing and treati..
|
|
Contemplating the opening of a factory
: Contemplating the opening of a factory, you discover that it appears to be a toss-up between building a plant that uses cheaper machinery and hiring 200 workers who will earn an average of $8 an hour and building a plant that uses more expensive
|
|
Develop a job application cover letter
: Develop a Job Application Cover Letter that highlights and emphasizes why you are the person most suitable for your ideal role. Use the general writing guideline
|
|
Summarize the advantages and disadvantages of the plan
: Summarize the advantages and disadvantages of the plan. Discuss one aspect or part of this plan that you think is the best part of the plan. Indicate your reasons why you chose this part.
|