Question

In: Operations Management

p .00 .01 .02 .03 .04 .05 .06 .07 .08 .09 .0 .5000 .5040 .5080 .5120...

p .00 .01 .02 .03 .04 .05 .06 .07 .08 .09

.0 .5000 .5040 .5080 .5120 .5160 .5199 .5239 .5279 .5319 .5359

.1 .5398 .5438 .5478 .5517 .5557 .5596 .5636 .5675 .5714 .5753

.2 .5793 .5832 .5871 .5910 .5948 .5987 .6026 .6064 .6103 .6141

.3 .6179 .6217 .6255 .6293 .6331 .6368 .6406 .6443 .6480 .6517

.4 .6554 .6591 .6628 .6664 .6700 .6736 .6772 .6808 .6844 .6879

.5 .6915 .6950 .6985 .7019 .7054 .7088 .7123 .7157 .7190 .7224

.6 .7257 .7291 .7324 .7357 .7389 .7422 .7454 .7486 .7517 .7549

.7 .7580 .7611 .7642 .7673 .7704 .7734 .7764 .7794 .7823 .7852

.8 .7881 .7910 .7939 .7967 .7995 .8023 .8051 .8078 .8106 .8133

.9 .8159 .8186 .8212 .8238 .8264 .8289 .8315 .8340 .8365 .8389

1.0 .8413 .8438 .8461 .8485 .8508 .8531 .8554 .8577 .8599 .8621

1.1 .8643 .8665 .8686 .8708 .8729 .8749 .8770 .8790 .8810 .8830

1.2 .8849 .8869 .8888 .8907 .8925 .8944 .8962 .8980 .8997 .9015

1.3 .9032 .9049 .9066 .9082 .9099 .9115 .9131 .9147 .9162 .9177

1.4 .9192 .9207 .9222 .9236 .9251 .9265 .9279 .9292 .9306 .9319

1.5 .9332 .9345 .9357 .9370 .9382 .9394 .9406 .9418 .9429 .9441

1.6 .9452 .9463 .9474 .9484 .9495 .9505 .9515 .9525 .9535 .9545

1.7 .9554 .9564 .9573 .9582 .9591 .9599 .9608 .9616 .9625 .9633

1.8 .9641 .9649 .9656 .9664 .9671 .9678 .9686 .9693 .9699 .9706

1.9 .9713 .9719 .9726 .9732 .9738 .9744 .9750 .9756 .9761 .9767

2.0 .9772 .9778 .9783 .9788 .9793 .9798 .9803 .9808 .9812 .9817

2.1 .9821 .9826 .9830 .9834 .9838 .9842 .9846 .9850 .9854 .9857

2.2 .9861 .9864 .9868 .9871 .9875 .9878 .9881 .9884 .9887 .9890

2.3 .9893 .9896 .9898 .9901 .9904 .9906 .9909 .9911 .9913 .9916

2.4 .9918 .9920 .9922 .9925 .9927 .9929 .9931 .9932 .9934 .9936

2.5 .9938 .9940 .9941 .9943 .9945 .9946 .9948 .9949 .9951 .9952

2.6 .9953 .9955 .9956 .9957 .9959 .9960 .9961 .9962 .9963 .9964

2.7 .9965 .9966 .9967 .9968 .9969 .9970 .9971 .9972 .9973 .9974

2.8 .9974 .9975 .9976 .9977 .9977 .9978 .9979 .9979 .9980 .9981

2.9 .9981 .9982 .9982 .9983 .9984 .9984 .9985 .9985 .9986 .9986

3.0 .9987 .9987 .9987 .9988 .9988 .9989 .9989 .9989 .9990 .9990

3.1 .9990 .9991 .9991 .9991 .9992 .9992 .9992 .9992 .9993 .9993

3.2 .9993 .9993 .9994 .9994 .9994 .9994 .9994 .9995 .9995 .9995

3.3 .9995 .9995 .9995 .9996 .9996 .9996 .9996 .9996 .9996 .9997

3.4 .9997 .9997 .9997 .9997 .9997 .9997 .9997 .9997 .9997 .9998

A barista shop in NYC is open 200 days per year and sells an average of 77 pounds of Koko coffee beans a day.​ (Demand is assumed to be normally distributed with a standard deviation of 15 pounds per​ day). After ordering​, with a fixed cost​ of ​$19 per​ order, beans are always delivered from Uganda in exactly 4 days.​ Annual holding costs for the beans are ​$3/pound.

Note: round all answers to two (2) decimal places and don't type commas or separators, only a period to indicate decimals.

​a) The economic order quantity​ (EOQ) for Koko coffee​ beans is: Blank 1. Fill in the blank, read surrounding text. pounds per order.

b) The total annual holding costs of stock for Koko coffee​ beans are: ​$ Blank 2. Fill in the blank, read surrounding text. .

​c) The total annual ordering costs for Koko coffee​ beans are: ​$ Blank 3. Fill in the blank, read surrounding text. .

​d) Assume that management has specified that no more than a 1​% risk of stockout during lead time is acceptable. The reorder point​ (ROP) is: Blank 4. Fill in the blank, read surrounding text. pounds.

​e) The safety stock needed to attain a 1​% risk of stockout during lead​ time is: Blank 5. Fill in the blank, read surrounding text. pounds.

Solutions

Expert Solution

A barista shop in NYC is open 200 days per year

Per day demand =DD= 77 pounds

Annual Demand = D=200*77= 15400 pounds

standard deviation= σ= 15 pounds per​ day

Cost​ of Ordering =Co=​$19 per​ order,

Lead time= L= 4 days

Annual holding cost = Ch= ​$3/pound

a.

EOQ is

=441.66 Pounds per order

a.The economic order quantity​ (EOQ) for Koko coffee​ beans is: 441.66 Pounds per order

b. total annual holding costs is

= (Q/2)* Ch

= (441.66/2)*3

=662.49

b.The total annual holding costs of stock for Koko coffee​ beans are $662.49

c. The total annual ordering costs is

=number of orders * Co

No. of orders = (D/Q) = 15400/441.66 = 34.87

= 34.87 *19

=662.53

c.The total annual ordering costs for Koko coffee​ beans are: ​$662.53

d.

ROP can be calculated as

ROP = SS + Lead time demand

= Z * σL + DD * Lead time

1% stockout is allowed so expected availability = 99% and Z for 99% CSL = 2.33

σ = Standard deviation = 15 pounds per day

σL = Standard deviation of demand over lead time = = =30

ROP = 2.33 *30 +77*4

=377.90

d.The reorder point​ (ROP) is:377.90 pounds

e. The safety stock needed to attain a 1​% risk of stockout during lead​ time is

=Z * σL

= 2.33 * 30 = 69.9

e. The safety stock needed to attain a 1​% risk of stockout during lead​ time is 69.9 pounds

======================================END==============================================

I tried best to answer your question with all my expertise. If you liked answer, please give an Up-vote.

This would be encouraging for me, Thank you !!!


Related Solutions

PSY 312 Power Analysis Homework       h2     .02   .04 .06 .09 .12 .16   .20   .25   .30  ...
PSY 312 Power Analysis Homework       h2     .02   .04 .06 .09 .12 .16   .20   .25   .30   .36   .42   .49 power .30     93    53    34   24   18   14    11     9     8     7     6     5 .40      132    74    47   33   24   19    15    12    10     8     7     6 .50      170    95    60   42   30   23    18    14    12     9     8     7 .60      257 143    90   62   45   34    24    20    16    13    11     9 .70      300 167 105   72   52   39   ...
observation_date FEDFUNDS 1954-07-01 0.80 1954-08-01 1.22 1954-09-01 1.06 1954-10-01 0.85 1954-11-01 0.83 1954-12-01 1.28 1955-01-01 1.39...
observation_date FEDFUNDS 1954-07-01 0.80 1954-08-01 1.22 1954-09-01 1.06 1954-10-01 0.85 1954-11-01 0.83 1954-12-01 1.28 1955-01-01 1.39 1955-02-01 1.29 1955-03-01 1.35 1955-04-01 1.43 1955-05-01 1.43 1955-06-01 1.64 1955-07-01 1.68 1955-08-01 1.96 1955-09-01 2.18 1955-10-01 2.24 1955-11-01 2.35 1955-12-01 2.48 1956-01-01 2.45 1956-02-01 2.50 1956-03-01 2.50 1956-04-01 2.62 1956-05-01 2.75 1956-06-01 2.71 1956-07-01 2.75 1956-08-01 2.73 1956-09-01 2.95 1956-10-01 2.96 1956-11-01 2.88 1956-12-01 2.94 1957-01-01 2.84 1957-02-01 3.00 1957-03-01 2.96 1957-04-01 3.00 1957-05-01 3.00 1957-06-01 3.00 1957-07-01 2.99 1957-08-01 3.24 1957-09-01 3.47...
Questions 06, 07 and 08 refer to the same data American Airlines has 120 direct flights...
Questions 06, 07 and 08 refer to the same data American Airlines has 120 direct flights on a monthly basis from LAX Airport to Tokyo International Airport.  The past experience from the previous year determine that 30% of its direct flights from LAX to Tokyo International Airport arrive late.  Utilize the normal approximation to the binomial distribution to compute the following questions. Requirement Compute the probability 32 or fewer flights will arrive late Round your answer to three decimals the same as...
Q4. Suppose the character string “05/04/06” is assigned to an object, x. Which of the following...
Q4. Suppose the character string “05/04/06” is assigned to an object, x. Which of the following R commands would convert x to a date object that represents May 4, 2006? (Check all that apply) A. lubridate::mdy(x) B. lubridate::mdy(x, format = “m/d/y”) C. as.Date(x, format = ‘%m/%d/%y’) D. as.Date(x, format = “m/d/y”) E. as.Date(x, format = ‘m/d/y’) F. as.Date(x) Q5. Suppose you have a dataframe, df, with two datetime columns in them: firstPurchaseTime and lastPurchaseTime. These columns are a time stamp...
Instructions Scenario (information repeated for deliverable 01, 03, and 04) A major client of your company...
Instructions Scenario (information repeated for deliverable 01, 03, and 04) A major client of your company is interested in the salary distributions of jobs in the state of Minnesota that range from $30,000 to $200,000 per year. As a Business Analyst, your boss asks you to research and analyze the salary distributions. You are given a spreadsheet that contains the following information: A listing of the jobs by title The salary (in dollars) for each job You have previously explained...
Chapter 5 Homework Assignment (part 2) PE.05-03.ALGO PE.05-04.ALGO EX.05-04 EX.05-11 EX.05-12 EX.05-14.ALGO EX.05-15.ALGO EX.05-16.ALGO EX.05-17.ALGO EX.05-18.ALGO...
Chapter 5 Homework Assignment (part 2) PE.05-03.ALGO PE.05-04.ALGO EX.05-04 EX.05-11 EX.05-12 EX.05-14.ALGO EX.05-15.ALGO EX.05-16.ALGO EX.05-17.ALGO EX.05-18.ALGO Hide or show questions Progress:7/10 items eBook Show Me How Calculator Print Item Posting a Purchases Journal The purchases journal for Newmark Exterior Cleaners Inc. follows. The accounts payable account has a March 1, 20Y2, balance of $605 for an amount owed to Nicely Co. No payments were made on creditor invoices during March. PURCHASES JOURNAL Page 16 Date Account Credited Post. Ref. Accts.  ...
In Yahoo Finance, find the weekly prices from 09/01/2017 to 08/31/2020 for two Vanguard funds –...
In Yahoo Finance, find the weekly prices from 09/01/2017 to 08/31/2020 for two Vanguard funds – the Vanguard Index 500 fund (symbol VFINX) and the Vanguard High-Yield Corporate Bond fund (VWEHX). The first of these funds tracks the Standard and Poor’s 500, and VWEHX is a junk-bond fund. Compute the weekly mean returns, sample variance, sample standard deviation, sample covariance, and correlation statistics. Graph a weekly mean return and standard deviation frontier of the portfolios composed of these two funds.
x 0 1 2 3 4 P(X) .45 .3 .2 .04 .01 (c) Find the probability...
x 0 1 2 3 4 P(X) .45 .3 .2 .04 .01 (c) Find the probability that a person has 1 sibling given that they have less than 3 siblings. Hint: Use the conditional formula: P(A|B)=P(A and B)/P(B). In this case A: event of having 1 sibling and B: event of having less than 3 siblings. (d) Find the probability that a person has at least 1 sibling OR less than 2 siblings. Hint: Use the General Addition Rule: P(A...
Q2 Impact Of Pandemic On Economy And Recovery Policy Bernama Radio Bernama TV 08/04/2020 05:54 PM...
Q2 Impact Of Pandemic On Economy And Recovery Policy Bernama Radio Bernama TV 08/04/2020 05:54 PM By Dr Norlin Khalid Apr 8, 2020 - KUALA LUMPUR (Bernama) – The coronavirus or COVID-19 outbreak, which is said to have originated at a wet market in Wuhan, China, has spread all over the world like lightning and was categorised as a pandemic by the World Health Organisation (WHO) on March 11. To date, the virus has infected over a million people in...
Calculate the monthly returns for 08/01/2015 – 08/31/2019 period for (i) S&P 500: Date Adj Close...
Calculate the monthly returns for 08/01/2015 – 08/31/2019 period for (i) S&P 500: Date Adj Close 8/1/2015 1972.18 9/1/2015 1920.03 ######## 2079.36 ######## 2080.41 ######## 2043.94 1/1/2016 1940.24 2/1/2016 1932.23 3/1/2016 2059.74 4/1/2016 2065.3 5/1/2016 2096.95 6/1/2016 2098.86 7/1/2016 2173.6 8/1/2016 2170.95 9/1/2016 2168.27 ######## 2126.15 ######## 2198.81 ######## 2238.83 1/1/2017 2278.87 2/1/2017 2363.64 3/1/2017 2362.72 4/1/2017 2384.2 5/1/2017 2411.8 6/1/2017 2423.41 7/1/2017 2470.3 8/1/2017 2471.65 9/1/2017 2519.36 ######## 2575.26 ######## 2584.84 ######## 2673.61 1/1/2018 2823.81 2/1/2018 2713.83 3/1/2018 2640.87...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT