Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose you are overseeing the purchasing of a certain commodity for the following year. The demand for this item is estimated to be 20,000 units/year, and steady throughout. Every time you process and receive a shipment of this commodity, you incur a cost of $800. Finally, the cost to keep one item in inventory is $3.00 annually.Ordinarily, cost per unit is $18. However, if you purchase 10,000 or more in a delivered lot, the cost drops to $17.50 each.(a.) Determine the optimal quantity of this commodity to be purchased in each lot. (Write down the relevant figures that enable you (and POM-QM) to choose.)(b.) Consider the lot of 10,000 items (regardless of whether you chose this policy). By how much does the inventory cost of this policy differ from that of the other candidate policy? (Specify the relevant costs.)(c.) Suppose you could lease, for free, superior forklift equipment that would drop the ordering cost to $100 for each delivered lot. Would this reduction cause you to change your optimal policy? Why or why not (write down the results)? How much money will this save you annually?(d.) These days, third party logistics (3PL) are all the rage. With 3PL, other firms are subcontracted to carry out some or all of the inventory function. Suppose the supplier offers such a service to you. Their idea is to hold inventory for you; this will reduce both your ordering costs and your holding costs.Specifically, you still pay for the goods when a lot is purchased but you do not actually stock the items in large quantities. Suppose this convenience reduces the holding cost to $1.50 per item per year (instead of $3). Additionally, your warehouse space, equipment and operators are not tied up because only small quantities are released to you. Suppose, then, that because of this the ordering cost for the small size "releases" is just $5 (instead of $800).There is a catch to all of the above savings. To provide this service, your supplier will charge you the increased price of $18.50 per item. No quantity discounts apply. (Your demand is still 20,000/year.)FIND: In this new regime, figure out what the optimal policy is and its associated cost (write them down!). Is this a better deal for your company than the policy in part (a.)?(e.) Thus far, we have assumed that the demand of 20,000 units/year is steady over time. Now suppose that the demand varies. Specifically, suppose that the lead time (LT) to receive this product is 5 working days (assume 250 working days to the year). This implies that the demand during LT averages 400 units. Additionally, suppose that the standard deviation of demand during LT is 100 units. FIND: How much safety stock will you need to meet a 99% service level? What will the annual cost of providing this additional stock? [NOTE: please work with the original problem description, NOT the modifications in (c.) and (d.).]
Sink and Tuttle strategic matrix Sink and Tuttle (1989) conducted a review of literature and identified several criteria for measuring a company. Their framework builds on th
Utilizing Textbook Concepts Answer ALL of the Questions Below: 1. based on what you've learned this semester, why do you think there is high turnover and low retention among expatr
What is your understanding of the terms: marketing and selling? Are they the same? How do you differentiate the two terminologies? Provide examples to support your points.
Explain levels of Management by Management Skills. Management Skills needed successful manager, be categorized as given below: Technical skill refers to the pro
Approaches to Expanding long term Capacity There are two major approaches to expanding the long term capacity viz. All at once and Building a capacity increm
What is the difference between significance and meaningfulness? Which one is more important to experimental results and why do you think so?
Fred Flowers works for Alabama Electric and is a resident of the State of Florida. Following a series of storms in the Northeast, Alabama Electric sent Fred to Virginia as part of
1. How to characterize your supervisor's approach to management? For example, which particular management tasks and roles does this person perform most often? What kinds of managem
Windy City Balloon Port ran a balloon launching facility in Illinois, offering sightseeing flights in hot-air and helium balloons owned by third parties. Windy City sold tickets fo
What pay level does the efficiency wage predict? Does the theory accurately predict organization behaviour? Why or why not
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd