Reference no: EM131375687
The Ratas Company is using mainly teak lumber in the manufacture of outdoor furniture. They purchase teak lumber from a far away lumberjack in medium-to-large amounts and store it in their lumber yard near the factory. Each order placed to the lumberjack costs K to them. They use up lumber in the manufacture of outdoor furniture at the rate of lambda tons/month. Ratas assumes that the inventory carrying costs for lumber are made up of two parts: inventory charge (ic/ton/month) proportional to the average inventory, and warehousing cost (w/ton/month) proportional to the maximum inventory. Ratas may allow for stock-outs of lumber, though manufacturing of furniture may stop for a while, until the replenishment order arrives. They assume a shortage cost of pi/ton/month, when they are out of stock. Ratas assumes 20 days in a month.
a) Formulate the total monthly cost function G(Q,B) for Ratas. (Let Q and B be the order quantity and maximum stock-out level for lumber, respectively).
b) Derive the optimum order quantity, Q* and the backorder level, B*. Calculate the values of Q* and B* if K=500 TL/order, c=120,000 TL/ton, w=5 TL/ton/month, pi=500 TL/ton/month, i=1%/month, lambda=5 tons/month.
c) What should the minimum capacity of lumber yard (in tons) if Ratas continues to order in the optimum order quantity?
d) What should the reorder point of Ratas be, if the lumberjack usually sends the order to Ratas in 5 days?
e) What is Ratas’s longest delay (in days) in manufacturing, when Ratas is out of lumber stock?
What will be price of each of bonds at given time periods
: Assuming that the yield to maturity of each bond remains at 9.6 percent over the next 4 years, what will be the price of each of the bonds at the given time periods? Fill in the given table:
|
List the ways an evaporator can be defrosted
: List some of the loads that must be considered when sizing the BTU requirements of a walk-in cooler or freezer.
|
Best organizational processes and procedures practices
: If you worked in a professional office environment, what might be some of the best methods for addressing the following (Please elaborate): Best organizational processes and procedures practices. Organizational processes quality management. Organizat..
|
Analyzed how you would manage a smaller project
: In the Discussion Board, you already analyzed how you would manage a smaller project compared to a larger project. You will now synthesize what you have learned during the discussions on this topic.
|
Ratas continues to order in the optimum order quantity
: The Ratas Company is using mainly teak lumber in the manufacture of outdoor furniture. They purchase teak lumber from a far away lumberjack in medium-to-large amounts and store it in their lumber yard near the factory. Each order placed to the lumber..
|
What is the percentage change in the price of each bond
: A bond trader purchased each of the following bonds at a yield to maturity of 8 percent. Immediately after she purchased the bonds, interest rates fell to 7 percent. What is the percentage change in the price of each bond after the decline in inte..
|
Compare the experiences your colleagues shared
: Compare the experiences your colleagues shared regarding divergent-thinking and convergent-thinking processes and how culture influenced them.
|
Calculate the economic order quantity for the item
: The demand for a product is constant at 20 units a month. Each unit costs 100 TL. Last year the cost of running the company’s purchasing department (which sent out 2,000 orders) was 50,000 TL. All other costs associated with stocking the item are com..
|