PLEASE SHOW ALL WORKINGS!!! THANKS 1) Andre Candess manages an office supply sto

Question

PLEASE SHOW ALL WORKINGS!!! THANKS

1) Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. How many units should Andre order each time?

2.) R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. How many units should R. C. order to minimize his total annual inventory cost? (Round your answer to the nearest unit.)

5) The demand during the lead-time is normally distributed with a mean of 40 and a standard deviation of 4. If the company wishes to maintain a 90 percent service level, how much safety stock should be held?

6) The annual demand for a product is 1,000 units. The company orders 200 units each time an order is placed. The lead-time is 6 days. There are 250 working days per year. If the reorder point is 50, what safety stock are they using?

7) Everett Mann's Dream Store sells waterbeds and supplies. The best selling bed in the store has an annual demand of 400 units. The ordering cost is $40, while the holding cost is $5 per unit per year. There are 250 working days per year, and the lead-time is 6 days. (a) To minimize total cost, how many units should be ordered each time an order is placed? (b) If the holding cost per unit was $6 instead of $5, what would the optimal order quantity be?

8) Candy Incorporated stocks bubble gum game cards, an item that has a normally distributed demand during the reorder period with a mean of 12 dozen boxes and a standard deviation of two dozen boxes. If it is desirable to experience a stockout only 10 percent of the time, what is the appropriate safety stock?

9) Billy Penny is trying to determine how many units of two types of lawn mowers to produce each day. One of these is the Standard model, while the other is the Deluxe model. The profit per unit on the Standard model is $60, while the profit per unit on the Deluxe model is $40. The Standard model requires 20 minutes of assembly time, while the Deluxe model requires 35 minutes of assembly time. The Standard model requires 10 minutes of inspection time, while the Deluxe model requires 15 minutes of inspection time. The company must fill an order for 6 Deluxe models. There are 450 minutes of assembly time and 180 minutes of inspection time available each day. How many units of each product should be manufactured to maximize profits?

Explanation / Answer

1) Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. How many units should Andre order each time?

Annual demand D= 10000

working days = 250 So sale per day = 10000/250=40

Lead time = 3, cost of placing order C=30 holding cost k= 15/year

EOQ = sqrt (2Dk/C) = =sqrt(2*10000*30/15) = 200 units

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