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Question
A store has collected the following information on one of its products:
Demand = 5,000 units/year
Ordering costs = $12/order
Holding costs = $4/unit/year
Lead-time = 5 days weeks
Unit cost = $748/unit
Number of weeks per year = 50 weeks
a. The firm currently orders 500 units per order. What is the total cost of ordering and holding these goods under this system?
b. Determine their economic order quantity and cost of ordering and holding goods using the EOQ.
c. Form the ratio of the order quantities under the old policy and EOQ. Form the ratio of the EOQ to the old order quantity. Then form the ratio of their total system costs under the two ordering policies. Average these two ratios and compare this number with the ratio of the old total cost with the total cost under an EOQ policy.
d. How do they compare?
Answer
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Related questions
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2
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6
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Q:
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3
4
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Q:
Develop a process chart for one of the following:
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17
Q:
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Q:
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Q:
A single-sampling plan by attributes is needed for a purchased component. Table G.1 is appended to this exam.
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Q:
Refer to the bank process model. The bank's process improvement group has developed a number of process and technology changes that will improve the Teller's process rate per customer from a mean of 3.0 minutes to 2.5 minutes (standard deviation remains at 0.5 minutes). The Bank Manager wants to determine if the improved process rate, along with the special promotion for new customers, will allow the "arrive and immediately leave" rate and average customer wait time in line achieved to still be met (12% balk rate, 9.95 minutes in line). If so, the manager will implement the process and technology changes and allow the special promotion to proceed. Using SimQuick, estimate the new arrive and immediately leave rate and average time in line. What decision should the manager make?
Q:
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Q:
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Q:
What is degeneracy in the context of linear programming? Why is degeneracy a concern?
Q:
Construct a 3-sigma and R-chart for the length in centimeters of a part from the following table. Sample #
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Observation 2
Observation 3
Observation 4 1
0.486
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0.499
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0.496
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0.495
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Q:
The three-person crew worked their way through the neighborhood, testing doorknobs and windows and slipping past security systems like a team of ninjas. Of course, they weren't ninjas, but a crew of brazen burglars, hoping to grab cash and other valuables to fence at the next level of their supply chain. Fortune smiles on them on this day in the prestigious Edmond Oaks neighborhood. A lawn maintenance crew is creating a tremendous racket mowing and edging lawns, which completely drowns out the sounds of breaking glass. Details of the day's haul appear in Table C.
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Table C: The Haul ITEM
SALES PRICE
LABOR
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1 hr
$2 Flat screen TV
$250
.25
$1 $200 cash
$200
.05
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$5
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$25 Rolex watch
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represents the cost of gasoline and surgical gloves, and overhead is 20% of the sales price of
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Q:
Consider this list of jobs that have just arrived and are ready for processing. They all require processing first on machine 1 and then on machine 2. Both machines are now idle. Develop a schedule that minimizes makespan and calculate this makespan time. Now assume that each job can be split into two jobs, each having half the duration on both machine 1 and machine 2. Using the original sequence that minimized average flow time, calculate the flow times for all split jobs What is the effect of this new schedule on the average flow time for these split jobs? Job
Machine 1
Machine 2 1
14
6 2
11
12 3
16
14 4
12
8 5
22
9 6
13
15 7
10
12 8
8
13