Home Pro Sdn Bhd sells a wide range of electrical appliances to householders in IOI mall. One of the products it offers is Supersonic Blender MX101. The supplier for Supersonic Blender MX101 pays all incoming freight. No incoming inspection of Supersonic Blender MX101 is necessary because the supplier has a track record of delivering high-quality product. The purchasing officer of the Home Pro Sdn Bhd has collected the following information: Annual demand for Supersonic Blender MX101 12,100 units Ordering cost per purchase order RM225 Carrying cost per year Cost of Supersonic Blender MX101 10% of purchase costs RM34 per roll The purchasing lead time is 4 weeks. The Supersonic Blender MX101 is open 312 days a year (52 weeks for 6 days a week). Required: a) Calculate the EOQ for Supersonic Blender MX101. b) Calculate the number of orders that will be placed each year. c) Calculate the reorder point for Supersonic Blender MX101 (5 marks) (4 marks)
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1 * 12,100 * RM34)) Simplifying: EOQ = √((2 * 12,100 * 225) / (0.1 * 12,100 * 34)) EOQ = √(54,450,000 / 41,340) EOQ = √1,318.68 EOQ ≈ 36.29 Show more…
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Part a. Annual demand for the Doll two-drawer filing cabinet is 50,000 units. Bill Doll, president of Doll Office Suppliers, controls one of the largest office supply stores in Nevada. He estimates that the ordering cost is $10 per order. The carrying cost is $4 per unit per year. It takes 25 days between the time that Bill places an order for the two-drawer filing cabinets and the time when they are received at his warehouse. During this time, the daily demand is estimated to be 250 units. (i) What is the economic order quantity? (ii) What is the reorder point? (iii) What is the optimal number of orders per year? Part b. Bill Doll (See Part a of Problem 1) now believes that the carrying cost may be as high as $16 per unit per year. Furthermore, Bill estimates that the lead time is 35 days instead of 25 days. Resolve Problem 1, part a using $16 for the carrying cost with a lead-time of 35 days.
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Far North Manufacturing is starting to manufacture a new line of toys for this Christmas season. The number of toys they can manufacture each week can be modeled by $$ T(w)=500 w+3000 $$ where $T(w)$ represents the number of toys manufactured during week $w$ of production. The total weekly cost for manufacturing these toys can be modeled by $$ C(t)=1.75 t+5000 $$ where $C(t)$ represents the total weekly cost in dollars from producing $t$ toys a week. give the total weekly cost for week $w$ of production. b. Find the number of toys produced during the fifth week of production. c. Find the total weekly cost to produce 5000 toys. d. Find the total weekly cost for the seventh week of production. e. In what week will the total weekly cost reach $\$ 18,500.00 ?$
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