Question 5 of 14 | 5.0 Points |
Based on the calculation in Question 4, Lila's total holding cost is What's This?Shoe Shine is a local retail shoe store located on the north side of Centerville. Annual demand for a popular sandal is 500 pairs, and John Dirk, the owner of Shoe Shine, has been in the habit of ordering 100 pairs at a time. John estimates that the ordering cost is $10 per order. The cost of the sandal is $5 per pair. Question 6 of 14 | 10.0 Points |
If the carry cost were 10% of the cost, then the optimal order quantity would be What's This? | Question 7 of 14 | 10.0 Points |
If the optimal order quantity were 100 pairs of sandal, the carry cost should be What's This? |
Ross White’s machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost) and the ordering cost per order is $18.75. There are 250 working days per year. Now, Ross White wants to reconsider his decision of buying the brackets and is considering making the brackets in-house. He has determined that setup costs would be $25 in machinist time and lost production time, and 50 brackets could be produced in a day once the machine has been set up. Ross estimates that the cost (including labor time and materials) of producing one bracket would be $14.80. The holding cost would be 10% of this cost. Question 8 of 14 | 5.0 Points |
The daily demand rate for Rose White's machine shop is What's This? | Question 9 of 14 | 10.0 Points |
The optimal production quantity for Rose White's machine shop is What's This? | Question 10 of 14 | 5.0 Points |
Given the optimal production quantity calculated above, it will take What's This? | Question 11 of 14 | 5.0 Points |
During the time producing the optimal quantity, (based on your calculation in Questions 8 and 10), there will be about What's This? | Question 12 of 14 | 10.0 Points |
If Rose uses the optimal production quantity calculated above in Question 9, the maximum inventory level would be What's This? | Question 13 of 14 | 10.0 Points |
If Rose uses the optimal production quantity calculated above in Question 9, there would be about What's This? | Question 14 of 14 | 5.0 Points |
If the lead time is one-half day, the reorder point (ROP) is What's This? |
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