What is the maximum inventory level

Assignment Help HR Management

Reference no: EM132949096

Question 1

Question 10.1(a) If the firm wishes to produce this product in economic batches, what size batch should be used?
Leonard Manufacturing is a manufacturer of a special bearings. Leonard can sell 10,000 units of his bearings annually. Production averages 80 units per day, while demand is 60 units per day. Holding costs are $5.00 per unit per year, and setup cost is $200.00.

(b) What is the maximum inventory level?

(d) What are the total annual setup and holding costs?

Question 2

Good Kitchen sells a popular blender with the demand of 175/month. Good Kitchen purchase the blenders from its supplier at the unit cost of $2.50 and the cost of placing an order has been estimated to be $12.00. Good Kitchen uses an inventory carrying charge of I = 27% per year.

Determine (a) the optimal order quantity, (b) the order frequency, and (c) the annual holding and setup cost. If, through automation of the purchasing process, the ordering cost can be cut to $4.00, what will be (d) the new economic order quantity, (e) the order frequency, and (f) annual holding and setup costs? Explain these results.

Question 3

A standing desk consists of a desk top, four legs, and two adjustment motors. Each leg fastens to the desk top with one fastener set. Each adjustment motor requires two fastener sets for attachment to the legs. Currently there is one order outstanding, to make 180 standing desks. There are 500 legs and 20 desk tops in inventory. There are no other large items in inventory, and no scheduled receipts.

(a) Draw the product structure tree.

(b) Calculate the net requirements to fulfill the outstanding order.

Question 4

The following table shows the bill of material for Product A. The gross requirements for A are 200 units in week 6 and 250 units in week 8. Develop the MRP tables for each item for an 8-week planning period. Use the lot-for-lot lot-sizing rule.

B(1)

L(4) M(2)

Item Lead Time Quantity on Hand Scheduled receipts

A 1 0

B 2 20 30 in week 2

L 2 0

M 1 20 10 in week 1

Question 5

The following table shows the demand for fans manufactured by Leonard's Fan Company. The holding cost for that item is $2 per month and each setup costs $80. Lead time is 0 months. Calculate the planned order releases using: (a) the EOQ technique, and (b) the POQ technique. What are the costs of each plan, including the holding cost of any inventory left over after month 7?

Items Requirement

1 400

2 150

3 200

4 150

5 100

6 150

7 250

Reference no: EM132949096

Questions Cloud

Calculate the inventory turnover ratio and number of days : Discuss each of these ratios states about the company's efficiency in managing its inventory, and how they compare to the industry average.

What is the financial leverage of the company : A company generates ROA of 3.5% and has sales of $3,400, What is the ROE of the company? ?What is the financial leverage of the company?

How do determine the ending inventory cost using fifo : There are 30 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost using FIFO.

State relevant content of ifm for each of underlying comment : State the relevant content of IFM for each of the underlying comment and assess whether each of the treasurer's comments is correct or incorrect.

What is the maximum inventory level : What is the maximum inventory level and What are the total annual setup and holding costs - Calculate the net requirements to fulfill the outstanding order

How norms exert influence on an individual behavior : 1 Deviant workplace behavior (also called anti-social behavior or workplace incivility) is voluntary behavior that violates significant organizational norms and

What balances would be overstated or understated : What balances would be overstated or understated? Which financial statements (income statement or balance sheet) would be affected?

What is the adjusted bank balance : What is the adjusted bank balance, after reconciliation? At the end of the month, your company had $16,689 in cash according to its accounting records.

What impact on the required rate of return for common stock : Assume that recent economic events have resulted in an increase of 2% in inflationary expectations, what impact on the required rate of return for common stock

User Account

All Pages