The following information refers to questions 11-13. A company orders a part fro
ID: 423672 • Letter: T
Question
The following information refers to questions 11-13.
A company orders a part from one of its suppliers in order to produce its final finished products. The company operates 300 days a year. Daily usage of the part is 300 parts. The company uses the part every day. The annual holding cost is 25 percent of the part’s value. The part’s value is $8 per unit. The fixed ordering cost is $100 per order.
Question 11
If the order size is 6,000 parts, what is the average inventory level (AIL)?
Question 11 options:
1500
2000
3000
6000
The following information refers to questions 11-13.
A company orders a part from one of its suppliers in order to produce its final finished products. The company operates 300 days a year. Daily usage of the part is 300 parts. The company uses the part every day. The annual holding cost is 25 percent of the part’s value. The part’s value is $8 per unit. The fixed ordering cost is $100 per order.
Question 12
If the order size is 6,000 parts, how many orders per year will there be?
Question 12 options:
10
15
20
25
The following information refers to questions 11-13.
A company orders a part from one of its suppliers in order to produce its final finished products. The company operates 300 days a year. Daily usage of the part is 300 parts. The company uses the part every day. The annual holding cost is 25 percent of the part’s value. The part’s value is $8 per unit. The fixed ordering cost is $100 per order.
Question 13
What is the economic order quantity?
Question 13 options:
3000
4000
5000
6000
Question 14
Lead time is exactly 20 days long. Daily demand is normally distributed with a mean of 10 gallons per day and a standard deviation of 2 gallons. What is the standard deviation of demand during lead time?
Question 14 options:
20 x 2
20 x 10
2 times the square root of 20
2 times the square root of 10
Question 15
In the single order quantity (newsboy) model, if shortage cost is four times excess cost, then the optimum service level is ___ percent.
Question 15 options:
80
20
100
40
Question 16
A service garage uses 1000 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis. What’s the economic order quantity?
Question 16 options:
50
100
200
400
Use the following information to answer questions 17-20.
A large hospital uses a certain intravenous solution that it maintains in inventory. Assume the hospital uses reorder point method to control the inventory of this item. Pertinent data about this item are as follows:
------------------------------------------------------------
Forecast of demanda = 1,000 units per week
Forecast errora, std. dev. =100 units per week
Lead time = 4 weeks
Carrying cost = 25 % per year
Purchase price, delivered = $52 per unit
Replenishment order cost = $20 per order
Stockout cost = $10 per unit
In-stock Probability during the lead time =90%
a Normally distributed
------------------------------------------------------------
Due to possible rounding effect, please pick the closest number in the following options.
Question 17
What is the reorder point?
Question 17 options:
4168
4256
4128
4000
Use the following information to answer questions 17-20.
A large hospital uses a certain intravenous solution that it maintains in inventory. Assume the hospital uses reorder point method to control the inventory of this item. Pertinent data about this item are as follows:
------------------------------------------------------------
Forecast of demanda = 1,000 units per week
Forecast errora, std. dev. =100 units per week
Lead time = 4 weeks
Carrying cost = 25 % per year
Purchase price, delivered = $52 per unit
Replenishment order cost = $20 per order
Stockout cost = $10 per unit
In-stock Probability during the lead time =90%
a Normally distributed
------------------------------------------------------------
Due to possible rounding effect, please pick the closest number in the following options.
Question 18
If the hospital orders 400 units each time, what’s the expected number of units out of stock annually?
Question 18 options:
1248
1000
500
2912
Use the following information to answer questions 17-20.
A large hospital uses a certain intravenous solution that it maintains in inventory. Assume the hospital uses reorder point method to control the inventory of this item. Pertinent data about this item are as follows:
------------------------------------------------------------
Forecast of demanda = 1,000 units per week
Forecast errora, std. dev. =100 units per week
Lead time = 4 weeks
Carrying cost = 25 % per year
Purchase price, delivered = $52 per unit
Replenishment order cost = $20 per order
Stockout cost = $10 per unit
In-stock Probability during the lead time =90%
a Normally distributed
------------------------------------------------------------
Due to possible rounding effect, please pick the closest number in the following options.
Question 19
If the hospital orders 400 units each time, what’s the total annual costs (holding cost + ordering cost + stock-out cost) excluding purchasing costs?
Question 19 options:
10000
21008
31008
42016
Use the following information to answer questions 17-20.
A large hospital uses a certain intravenous solution that it maintains in inventory. Assume the hospital uses reorder point method to control the inventory of this item. Pertinent data about this item are as follows:
------------------------------------------------------------
Forecast of demanda = 1,000 units per week
Forecast errora, std. dev. =100 units per week
Lead time = 4 weeks
Carrying cost = 25 % per year
Purchase price, delivered = $52 per unit
Replenishment order cost = $20 per order
Stockout cost = $10 per unit
In-stock Probability during the lead time =90%
a Normally distributed
------------------------------------------------------------
Due to possible rounding effect, please pick the closest number in the following options.
Question 20
If the lead time is normally distributed with a mean of 4 weeks and a standard deviation of 0.5 weeks, what’s the reorder point?
Question 20 options:
4689
4129
5188
6000
1500
2000
3000
6000
Explanation / Answer
Solution:
11.
Answer: 3000 units
Explanation:
12.
Answer: 15 orders
Explanation:
13.
Answer: 3000 units
Explanation:
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