Home / Questions / Problem 1A large retailer in Sydney that sells products manufactured by Nanuq Australia ne...
Problem 1A large retailer (in Sydney) that sells products manufactured by Nanuq Australia needs to developan inventory policy for electric heaters. The annual demand for the electric heaters is 3,000 (A)units. Each unit costs the retailer $50 (c) with holding costs amounting to 9 cents in the dollar peryear (h = 0.09). The order cost is estimated to be $30 (k).(a) Assuming that the retailer does not wish there to be any shortage, determine the economic orderquantity for the electric heaters.(b) Calculate the total annual relevant cost.(c) What is the time between orders (expressed as a fraction of a year)?(d) Now assume that the retailer is willing to take backorders for 20% of all purchases. Determine anew economic order quantity for the electric heaters.
STAT 279 Operations Research I Week 8 Homework Exercises Problem 1 A large retailer (in Sydney) that sells products manufactured by Nanuq Australia needs to develop an inventory policy for electric heaters. The annual demand for the electric heaters is 3,000 (A) units. Each unit costs the retailer $50 (c) with holding costs amounting to 9 cents in the dollar per year (h = 0.09). The order cost is estimated to be $30 (k). (a) Assuming that the retailer does not wish there to be any shortage, determine the economic order quantity for the electric heaters. (b) Calculate the total annual relevant cost. (c) What is the time between orders (expressed as a fraction of a year)? (d) Now assume that the retailer is willing to take backorders for 20% of all purchases. Determine a new economic order quantity for the electric heaters. Problem 2 The Top Rider Company is a small manufacturing company that uses gear assemblies to produce four different models of mountain bikes. One of these gear assemblies, the “Smooth Shifter”, is used for the two most expensive of Top Rider’s four models, and has an estimated annual demand of 300 units. Top Rider’s estimate of the cost to place an order is $40, and the holding cost for each assembly is $60 per year. The company operates 250 days per year. (a) Determine the Economic Order Quantity (b) What is the annual inventory holding cost if Top Rider orders using the EOQ quantity? (c) What is the annual ordering cost if Top Rider orders using the EOQ quantity? (d) What is the total relevant annual cost if Top Rider orders using the EOQ quantity? (e) What is the cycle length (time between orders) when orders are placed using the EOQ quantity? (f) How many times per year must Top Rider order the Smooth Shifter when orders are placed using the EOQ quantity? (g) The purchasing manager decides that, in order to save purchasing time, orders for the Smooth Shifter will be placed...
Jun 23 2020 View more View Less
Discuss and explain a-Choose a popular event. Who sponsors it? How are they buildingbrand equity with their sponsorship? Are they integrating thesponsorship with other ma...
Apr 10 2020A pipeline connecting two tanks contains four standard elbows, a plug valve that is fullyopen and a gate valve that is half open. The line is commercial steel pipe, 25 mm...
Jun 11 2020Calculate the effective value of g, the acceleration of gravity, at (a) 6400 m, (b) 6400 km, above the Earth’s surface.
Apr 02 2020Required Place an X in the appropriate columns for each of the situations. 1 answer below »Required Place an X in the appropriate columns for each of the situations.
Apr 02 2020A surveyor measures a zenith angle of 70° 03′20″ to the top of a flagpole and a horizontal distance to the flagpole of 93.7 ft as shown. The height of the transit is 6.00...
Jun 27 2020A log broker carries 60 species of wood; 20 are softwoods, 40 are hardwoods. If a buyer randomly selects five species, find the following probabilities:· P (2 softwoods,...
Apr 20 2020Complete using spread sheet provided. The cost of the project is $100 million. If the project is successful, it will generate expected profits of $15 million per year for...
Nov 08 2017When a new business is started, or a patient idea needs funding, venture capitalists or investment bankers will want to see will want to see a business plan that includes...
Aug 05 2020What is the future value of $950 paid on the last day of each 6 months for 12 years assuming an interest rate of 11 percent compounded semiannually?
May 11 2020Problems and Applications Q1 Which of the following describe some of the trade-offs faced by a family deciding whether to buy a new car? Check all that apply A newer mode...
Apr 14 2020