operations
wmashles88
ch12hmwkdata.xlsxFormulas
Pr2
| Yasuko's Art Emporium (YAE) ships art from its studio located in the Far East to its distribution center located on the West Coast of the United States. YAE can send the art either via transoceanic ship freight service (15 days transit) or by air freight (2 days transit time). YAE ships 18,000 pieces of art annually. | ||
| Air Freight | Freight Serv | |
| Time | 2 | 15 |
| Demand | 18,000 | 18,000 |
| Avg Tran Inv (ATI) | ||
| What additional information would be needed to make a comparison? |
Pr8
| Frederick's Farm Factory (FFF) currently maintains an average inventory valued at $3,400,000. The company estimates its capital cost at 10 percent, its storage costs at 4.5 percent, and its risk cost at 10 percent. Calculate the annual holding cost rate for FFF and the holding costs for FFF. | |||||
| Rate | Holding Cost | 3,400,000.00 | |||
| Capital Cost | 10.0% | ||||
| Storage Cost | 4.5% | ||||
| Risk Cost | 10.0% | ||||
| Holding Cost |
Pr14
| A local nursery, Greens, uses 1560 bags of plant food annually. It costs $10 to place an order for plant food. In an effort to reduce its inventory Rapid Grower, the supplier of plant food for Green, is offering Greens two additional price breaks to consider. If the nursery orders a three month supply, the cost per bag is $16. If Green orders a six month supply, the cost per bag is $14.50. Greens estimates its holding cost to be 25 percent of the unit price. Determine the most cost effective ordering policy for Greens. | ||||
| Months | Months | |||
| 3 | 6 | |||
| Demand | 1560 | 1560 | ||
| Ordering cost | $ 10.00 | $ 10.00 | ||
| Unit Price | $ 14.50 | $ 16.00 | ||
| Holding rate | 25% | 25% | ||
| EOQ | =SQRT(2*B11*B12/(B14*B13)) | |||
| Total Costs |
Pr16
| Sam's Auto Shop services and repairs a particular brand of foreign automobile. Sam uses oil filters throughout the year. The shop operates fifty-two weeks per year and weekly demand is 150 filters. Sam estimates that it costs $20 to place an order and his annual holding cost rate is $3 per oil filter. Currently, Sam orders in quantities of 650 filters. Calculate the total annual costs associated with Sam's current ordering policy. | |
| Annual | |
| Demand (D) | |
| Ordering cost (S) | $ 20.00 |
| Holding costs (H) | $ 3.00 |
| Quantity (Q) | 650 |
| Total Costs | |
Pr18
| The local Office of Tourism sells souvenir calendars. Sue, the head of the office, needs to order these calendars in advance of the main tourist season. Based on past seasons, Sue has determined the probability of selling different quantities of the calendars for a particular tourist season. The Office of Tourism sells calendars for $12.95 each. The calendars cost Sue $5 each. The salvage value is estimated to be $.50 per unsold calendar. Determine how many calendars Sue should order to maximize expected profits. | |||||||
| Price | $ 12.95 | ||||||
| Cost | $ 5.00 | ||||||
| Salvage Value | $ 0.50 | ||||||
| Demand | |||||||
| 75000 | 80000 | 85000 | 90000 | 95000 | Expected Profit | ||
| Ordered | 0.15 | 0.25 | 0.30 | 0.20 | 0.10 | ||
| 75000 | =$A$13*($B$7-$B$8) | ||||||
| 80000 | =(B$11*($B$7-$B$8))-(($A14-B$11)*($B$8-$B$9)) | ||||||
| 85000 | |||||||
| 90000 | |||||||
| 95000 |
Pr20
| Given the following list of items, calculate the annual usage costs of each item. Classify each item as A, B, or C. | ||||||||||
| Item | Annual Demand | Ordering Cost | Holding Cost | Unit Price | Annual Usage Cost | Percentage of Total | Classification | |||
| 101 | 500 | $ 10 | 20% | $ 0.50 | $ 250 | Classification Table | ||||
| 102 | 1,500 | $ 10 | 30% | $ 0.20 | $ 300 | 0% | C | |||
| 103 | 5,000 | $ 25 | 30% | $ 1.00 | $ 5,000 | 5% | B | |||
| 104 | 250 | $ 15 | 25% | $ 4.50 | $ 1,125 | 25% | A | |||
| 105 | 1,500 | $ 35 | 35% | $ 1.20 | $ 1,800 | |||||
| 201 | 10,000 | $ 25 | 15% | $ 0.75 | $ 7,500 | |||||
| 202 | 1,000 | $ 10 | 20% | $ 1.35 | $ 1,350 | |||||
| 203 | 1,500 | $ 20 | 25% | $ 0.20 | $ 300 | |||||
| 204 | 500 | $ 40 | 25% | $ 0.80 | $ 400 | |||||
| 205 | 100 | $ 10 | 15% | $ 2.50 | $ 250 | |||||
| Total | ||||||||||
Pr22
| Tax Preparers, Inc. works 250 days per year. The company uses adding machine tape at a rate of eight rolls per day. Usage is believed to be normally distributed with a standard deviation of three rolls during lead time. The cost of ordering the tape is $10 and holding costs are $0.30 per roll per year. Lead time is two days. | |||
| Find z | 0.9700 | 1.8807936082 | |
| 0.9900 | 2.326347874 | ||
| Demand/day (d) | 8 | ||
| Total Demand (D) | |||
| Lead time | 2 | ||
| Ordering cost | $ 10.00 | ||
| Holding costs | $ 0.30 | ||
| EOQ | http://www.youtube.com/watch?v=CzEMKiz0fHU | ||
| RR(97%) | |||
| SS(97%) | |||
| RR(99%) | |||
| SS(99%) |
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