Consider a single source procurement situation: You have a demand rate of 151 units per period,...

Consider a single source procurement situation: You have a demand rate of 151 units per period, replenishment rate of 2,550 units per period, lead time of 8 periods, item cost of 21.18, cost per procurement of 7.77, holding cost per unit of 7.63, and per unit shortage cost of 10.43. Find the minimum cost procurement quantity..

Solutions

Expert Solution

let, do demand rate per day 62 unit cost of us rentory Co= ordering cost unit Innentory fold Cho holding cost sunit 1 year on backorder or shortage cost funit year D--Annual demand rate then optimum procurement Quantity will be given by Qopt = 2D Co . G+G 1 backor -dee lisroutory where, backordering is allowed is given question, Here D=2550 x 0 = 18000 units Co= 7.77 4 = 7.63 4 =10.43 i. Qopt is also known as minimum wost procurement quantity 12x 18000 X 7.77 10.43€ 7.63 i. Qopt = 7.63 10.43 Qoht 3 251.951 mit. thus minimum cost prourement quantity should by 251.951 252 anits per procurement.

milcah answered 2 years ago

Next > < Previous

Related Solutions

The factory capacity is 25,000 units per year, but demand is 40,000 units. You have an...

The factory capacity is 25,000 units per year, but demand is 40,000 units. You have an opportunity to buy equipment that will allow your company to meet the 40,000 unit annual demand. The equipment will only last 7 years and have no use or no value after that. The equipment costs $4,567,890 - plus 8.88% sales tax, 1.2% dealer fee, and $13,917 for title and license fees. The company will pay the equipment off interest free over the next 5...

Consider a single period problem where the riskless interest rate is zero, and there are no...

Consider a single period problem where the riskless interest rate is zero, and there are no taxes. A firm consists of a machine that will produce cash flows of $210 if the economy is good and $80 if the economy is bad. The good and bad states occur with equal probability and the covariance of these states with the market portfolio is zero (no systematic risk). Initially, the firm has 100 shares outstanding and debt with a face value of...

consider the probability that less than 16 out of 151 people have been in a car...

consider the probability that less than 16 out of 151 people have been in a car accident. assume the probability that a given person has been in a car accident is 12%. Approximate the probability using the normal distribution. Round to four decimal places.

The SCO Company sells desks that have a demand of 4 units per month and cost...

The SCO Company sells desks that have a demand of 4 units per month and cost $25 each, the annual carrying charge is 30 percent of the product value, and it costs $15 to place an order. The company is considering installing either a Q or a P system for inventory management. The standard deviation of demand has been 4 units per month, and the replenishment lead time is two months, a 90 percent service level is desired. For Parts...

Now that you have a better understanding of interest rates, consider a situation in which you...

Now that you have a better understanding of interest rates, consider a situation in which you need to purchase a car for work. You have found a reliable car within your budget, but you are not sure whether or not to finance the purchase. What questions would you need to consider before making such a decision? What are some of the pros and cons of using credit? Your journal entry must be at least 200 words in length. No references...

The physician ordered Adagen 10 Units/kg IM now. You have available 1.5 ml single use vials of Adagen 250 Units per ml.

The physician ordered Adagen 10 Units/kg IM now. You have available 1.5 ml single use vials of Adagen 250 Units per ml. The clients weights 143lbs. How many ml should you give?

An annuity-due has 26 payments of $300 per period. The effective rate of interest per period...

An annuity-due has 26 payments of $300 per period. The effective rate of interest per period is 8% for the first 12 periods and 5% for the following 14 periods. (A) Find the accumulated value of the annuity using the portfolio method. Round your answer to 2 decimal places. (B) Find the accumulated value of the annuity using the yield-curve method.. Round your answer to 2 decimal places.

Assume you have a product with the following parameters: Annual Demand = 360 units Holding cost per year = $1.00 per unit Order cost = $100 per order

Assume you have a product with the following parameters: Annual Demand = 360 units Holding cost per year = $1.00 per unit Order cost = $100 per order a) What is the EOQ for this product?b) In addition, assume a 300-day work year, how many orders should be processed per year? c) What is the expected time between orders?

You purchased 100 shares of IBM common stock on margin at $151 per share. Assume the...

You purchased 100 shares of IBM common stock on margin at $151 per share. Assume the initial margin is 50%, and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. Round your answer to the nearest cent (2 decimal places).

How important have economists been in shaping Australia’s economic and/or social development? Consider any single period...

How important have economists been in shaping Australia’s economic and/or social development? Consider any single period of approximately 10 -15 years between 1946 and 2020.

Subjects