Reference no: EM131438248
Dexter Inc is a small distributor of specialized industrial tools located in Cahir, County Tipperary, Ireland. They work with hundreds of manufacturers that provide them with products that they in turn sell to their thousands of customers. One item they sell is the Left Handed Monkey Wrench, or SKU WML999 that is manufactured by Wilson Worldwide. The WML999 is a steady seller for Dexter Inc. They have been selling them for several decades and the demand has been remarkably constant and stable with no variation, trend or seasonality.
The average demand for Left Handed Monkey Wrenches is 260 units per year. The cost to Dexter Inc for the Left Handed Monkey Wrench is 72 $/item and they sell them for 112 $/item to their customers. It costs just 5 $/order for Dexter Inc. to place an order to Wilson Worldwide and the lead time is 1 week. Dexter's annual inventory holding cost is 20% and for this problem assume there are 52 weeks per year.
Wilson Worldwide has realized that its new policy of ordering in cases only might have caused its customers (namely Dexter Inc.) problems. It has decided to modify its policy once again. Instead of requiring orders to be in cases of 25 units, they will now allow orders in packs of 5 units. There are five packs in each case, obviously. This means that Left Handed Monkey Wrenches can be ordered in packs of 5 or in cases of 25. Unfortunately, it costs Wilson Worldwide time and money to break up cases into separate packs, so they will increase the cost per order from 5 $/order to 6 $/order if Dexter Inc. orders in PACK versus CASE sizes. So, if Dexter Inc. orders, say, 3 packs, it will be charged 6 $/order. However, if it orders 1 case it will only be charged 5 $/order.
Based on this new information, which of the following statements are true? You are allowed to select more than one of the statments.
a. Dexter Inc.'s new Economic Order Quantity, Q*, for Left Handed Monkey Wrenches should be 1 pack
b. Dexter Inc.'s new Economic Order Quantity, Q*, for Left Handed Monkey Wrenches should be 2 packs
c. Dexter Inc.'s new Economic Order Quantity, Q*, for Left Handed Monkey Wrenches should be 3 packs
d. Dexter Inc.'s new Economic Order Quantity, Q*, for Left Handed Monkey Wrenches should be 4 packs
e. Dexter Inc.'s new Economic Order Quantity, Q*, for Left Handed Monkey Wrenches should be 1 case
f. Dexter Inc.'s new Economic Order Quantity, Q*, for Left Handed Monkey Wrenches should be greater than 1 case
g. Reducing the leadtime would lower the pipeline inventory.
h. Reducing the leadtime would increase the total costs (purchase, order, holding) for Dexter Inc.
i. None of these statements are true.
Piggy-back on existing technology
: Emerging economies are developing economically because they can “piggy-back” on existing technology; explain how this can 1. Cause short term problems for U.S. International business, but 2. benefit U.S. business in the long run.
|
Globalization of business activities
: Globalization of business activities has accelerated since World War ll. explain, how changes immediately after World War ll boosted global business activity.
|
Difference between major equipment and accessory equipment
: IN the context of business products, which of the following is a difference between major equipment and accessory equipment?
|
Name two global trends and rwanda working
: Name two global trends and Rwanda working
|
Reducing the leadtime would lower the pipeline inventory
: Dexter Inc is a small distributor of specialized industrial tools located in Cahir, County Tipperary, Ireland. They work with hundreds of manufacturers that provide them with products that they in turn sell to their thousands of customers. They have ..
|
Ethics and social responsibility-what a fraud
: The economy is tight, and there is competition among applicants to land jobs. This setting is expected to lead to an increase in the number of applicants who will misrepresent their background and credentials. The hope, of course, is that this bit of..
|
Major trends in the changing demographics of work force
: Identify two major trends in the changing demographics of the work force. Include a trend that you as a student or employee are now or could be affected by. Identify and describe a mission and strategy that an automobile repair shop might have.? rela..
|
What are the risks of extreme customization
: BMW and other forting automakers are adapting their products to better suit the Chinese market. To what extent should BMW customize its offerings to local tastes and preferences? What are the risks of extreme customization?
|
What is the total annual cost
: The Q Milk Co. is a distribution company located in Madrid, that produces and distributes dairy products and beverages in Spain. They have recently grown and now also distribute product in other European and Latin America countries. Considering the d..
|