Company B is a retailer of mobile phones in Australia that works 250 days in a...

• Annual demand: 900 phones
• Phone cost: $1,079 each
• Phone RRP: $1,199 each
• Net weight: 163 g each
• Tare weight: 277 g each
• Annual inventory holding cost: 15%
• Cost per order to replenish inventory: $75
• Annual in-transit holding cost: 10%
• Freight rate: $7.50 per kg
• Time to process order for freight: 1 days
• Freight transit time: 3 days

Solve this problem using a non-linear programming (NLP) model to determine the followings:

a. Economic order quantity for the phone in units and in kg
b. The total cost for purchasing the phones
c. The total cost for ordering
d. The total cost for holding the inventory
e. The total cost for transportation
f. The total cost for holding the phones during transit
g. The total cost for this inventory plan
h. The number of orders
i. Ordering point
j. The profit from this inventory plan

Please explain word and excel calculation

Solutions

Expert Solution

Answer:

Given that

Annual demand: 900 phones
Phone cost: $1079 each
Phone RRP: $1199 each
Net weight: 163 g each
Tare weight: 277 g each
Annual inventory holding cost: 15%
Cost per order to replenish inventory: $75
Annual in-transit holding cost: 10%
Freight rate: $7.50 per kg
Time to process the order for freight: 1 days
Freight transit time: 3 days

A. The economic order quantity for the phone in units and in kg

=process time*demand*cost/inventory cost

=1*900*75/7.50

=$ 9000

B. The total cost for purchasing the phones

=demand*phone cost*net weight

=900*1079*163

TOTAL COST OF PURCHASING THE PHONE=$158,289,300

TOTAL COST WITH TARE=demand*phone cost*tare weight

=900*1079*277

TOTAL COST WITH TARE=$ 268,994,700

C. The total cost for ordering

TOTAL COST FOR ORDERING-PER ORDER COST IS $75

D. The total cost for holding the inventory

THE TOTAL COST FOR HOLDING INVENTORY-

ANNUAL INVENTORY HOLDING COST IS $15%OF =268,994,7008*0.15

=$403,492,051.2‬

*** Please give Positive Rating...

Thanking You...

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Company B is a retailer of mobile phones in Australia that works 250 days in a...

Company B is a retailer of mobile phones in Australia that works 250 days in a year. The manager is determining a minimum-cost inventory plan for an upcoming phone to be launched in the market. She has collected the following information: • Annual demand: 900 phones • Phone cost: $1,079 each • Phone RRP: $1,199 each • Net weight: 163 g each • Tare weight: 277 g each • Annual inventory holding cost: 15% • Cost per order to replenish...

Talk-2-Me Corporation produces and markets mobile phones for corporate use. The mobile phones have built in...

Talk-2-Me Corporation produces and markets mobile phones for corporate use. The mobile phones have built in tracking devices and a network enabled shutdown system so that corporate security or the telephone holder can locate and quickly disable a corporation issued cell phone, when necessary. The cost of producing and installing the shutdown technology is as follow: Assuming 10,000 units produced and sold per unit Total Direct materials 4.50 $45,000 Production wages 2.75 27,500 Production overhead: Power and utilities 1.50...

As the world’s biggest maker of mobile phones, Nokia, the Finnish company, is a “powerhouse in...

As the world’s biggest maker of mobile phones, Nokia, the Finnish company, is a “powerhouse in Europe, Asia, and Latin America, with market shares regularly topping 30 percent”. However, in the United States, Nokia phones have lost popularity over the last few years. In March 2002, Nokia led the American market with 35 percent market share. By June of 2009, its share was only 7 percent. What happened and more importantly, what is Nokia doing about it? As mobile phone...

Question 1: A mobile phone manufacturer claims that the batteries in the manufactured mobile phones are...

Question 1: A mobile phone manufacturer claims that the batteries in the manufactured mobile phones are used for an average of 140 hours after being charged once. For this purpose, 17 telephone batteries were chosen randomly and it was determined that they could be used for an average of 136 hours and the standard deviation was 29 hours. According to this; a-) Is the batteries lasting less than 140 minutes according to 1% significance level? Examine statistically. b-) Determine the...

You are the owner of a franchise that sells mobile phones. Below is a chart showing...

You are the owner of a franchise that sells mobile phones. Below is a chart showing sells for the past 10 weeks. You want to start forecasting future sells but not sure which forecast method is best. To help you with this decision you decided to use the data below to calculate forecasts using 3 different methods (moving average, weighted moving average and exponential smoothing). You will determine which of the forecasts is best using the MAPE calculation to see...

In order to take full advantage of the growing markets of mobile phones in the ASEAN,...

In order to take full advantage of the growing markets of mobile phones in the ASEAN, WingWei Corporation has decided to setup its first manufacturing unit in Malaysia. When officially launched in January 2020, WingWei expects to sell their phones only through their official retail stores. WingWei has estimated to invest RM 50 million in initial investment. This investment includes the market cost of land, basic machineries, and modification cost of the machines. To avoid long-term risk, WingWei has decided...

Pakos is a leading mobile brand in the country. Their phones are sturdy and can withstand...

Pakos is a leading mobile brand in the country. Their phones are sturdy and can withstand extreme conditions. The phone is very popular among mountaineers. Briefly describe its segmentation strategy.

Pakos is a leading mobile brand in the country. Their phones are sturdy and can withstand...

Pakos is a leading mobile brand in the country. Their phones are sturdy and can withstand extreme conditions. The phone is very popular among mountaineers. Briefly describe its segmentation strategy.

In a developing country in which there is a demand for in-expensive android mobile phones. Prepare...

In a developing country in which there is a demand for in-expensive android mobile phones. Prepare an International Marketing Program for a newly design Samsung model Android based mobile phone specifically designed for this target market. The Marketing program should focus on the following sections: Discuss the Marketing Objectives (SMART), and Vision/Mission

VideoDev Ltd is a video and production development company which works for clients across Australia and...

VideoDev Ltd is a video and production development company which works for clients across Australia and New Zealand. The company is considering moving some of its computer infrastructure into the Cloud. The VideoDev Board is contemplating this move as a way to increase the company’s flexibility and responsiveness, as well as to achieve some savings on the cost of maintaining their ICT infrastructure. VideoDev has engaged you as a consultant to advise them on the use of Cloud Computing in...

Subjects