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(solution)- Barbara Bbest is the purchasing agent for West Valve Company

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1. Barbara Bright is the purchasing agent for West Valve Company kind of. West Valve sells commercial valves and liquid control tools. One of the the majority of famous valves is the Western, which has an yearly demand also of 4,000 systems. The price of each valve is $90, and also the inventory delivering cost is approximated to be 10% the price of each valve. Barbara has made a study of the prices associated in placing an order for any of the valves that West Valve stocks, and she has concluded that the average ordering cost is $25 per order. Furthermore, it takes around two weeks for an order to arrive from the supplier, and during this time the demand per week for West valves is around 80.

A)??? what is the EOQ


B)??? What is the ROP


C)??? What is the average inventory? What is the yearly holding cost?


??? D) How many type of orders per year would be placed? What is the annual ordering cost?


2. Ross White?s machine shop offers 2,500 brackets in the time of the course of a year, and also this consumption is relatively constant throughout the year. These brackets are purchased from a supplier a 100 miles amethod for $15 each, and also the lead time is 2 days. The holding price per bracket per year is $1.50 (or 10% of the unit cost) and also the ordering expense per order is $18.75. Tbelow are 250 functioning days per year.

A)??? What is the EOQ


B)??? Given the EOQ, what is the average inventory? What is the annual inventory holding cost?


C)??? In minimizing price, how many orders would be made each year? What would certainly be the yearly ordering cost?


D)??? Given the EOQ, what is the total annual inventory expense (price including purchase cost)


E)??? What is the moment in between orders?


??? F) What is the ROP?


3. Linda Lechner is in charge of preserving hospital offers at General Hospital. During the past year, the expect lead time demand also for bandage BX-5 was 60. Furthermore, the traditional deviation for BX-5 was 7. Linda would certainly favor to keep a 90% company level. What security stock level carry out you recommend for BX-5?


4. Shoe Shine is a local retail shoe located on the north side of Centerville. Annual demand also for a popular sandal is 500 pairs, and also John Dirk, the owner of Shoe Shine, has remained in the halittle bit of ordering 100 pairs at a time. John estimates that the ordering price is $10 per order.

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The cost of the sandal is $5 per pair. For John?s ordering plan to be correct, what would the moving price as a percentage of the unit price need to be? If the delivering cost were 10% of the expense, what would the optimal order amount be?


This question was answered on: Mar 27, 2020 PRICE: $24 Solution~00099347680.zip (18.37 KB)