Preview

Operations Managements

Good Essays
Open Document
Open Document
2532 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Operations Managements
1. -------------------------------------------------
Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to hold?
-------------------------------------------------
Answer | | close to 975 | | | close to 980 | | | close to 1095 | | | close to 1224 | | | close to 1225 |
5 points
Question 2 1. ------------------------------------------------- -------------------------------------------------
If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the annual ordering cost?
-------------------------------------------------
Answer | | 50 | | | 600 | | | 1200 | | | 2400 | | | Can not be determined |
5 points
Question 3 1. ------------------------------------------------- -------------------------------------------------
If the Economic Order Quantity (EOQ) is ordered, which of the following is true?
-------------------------------------------------
Answer | | Annual ordering cost exceeds annual holding cost. | | | Annual holding cost exceeds annual ordering cost. | | | Annual ordering cost is equal to annual holding cost. | | | The sum of annual ordering cost plus annual holding cost is maximized. | | | The annual holding cost curve is decreasing. |
5 points
Question 4 1. ------------------------------------------------- -------------------------------------------------
The basic Economic Order Quantity (EOQ) model can be considered a special case of the Economic Production Quantity (EPQ) model under which of the following condition?
-------------------------------------------------
Answer | | The demand per day is greater than production per day. | | | The production rate per day approaches 0. | | | The production rate per
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    MgtOp 340 Final Exam Notes
    • 5984 Words
    • 33 Pages

    MgtOp 340 Final Exam Notes

    2. A product for Simpson’s Stored has an annual demand of 72,000 units. The setup cost per order is $75, and the annual holding cost percentage is 40%. The product is purchased for $60 and…

    • 5984 Words
    • 33 Pages
    Good Essays
    Read More
  • Good Essays

    Loblaw Chapter 8
    • 4097 Words
    • 17 Pages

    Loblaw Chapter 8

    8.1 Estimate the amount of inventories that your company purchased and produced during the current year. (Hint: use the cost of sales equation.)…

    • 4097 Words
    • 17 Pages
    Good Essays
    Read More
  • Better Essays

    Nt1310 Unit 7 Inventory Management
    • 3206 Words
    • 13 Pages

    Nt1310 Unit 7 Inventory Management

    ◊Understand the Quantity Discount and the EMQ Models and their relationships with the basic EOQ model…

    • 3206 Words
    • 13 Pages
    Better Essays
    Read More
  • Good Essays

    Final Exam Study Guide
    • 1559 Words
    • 7 Pages

    Final Exam Study Guide

    (c) Currently the owner orders 4000 quarts of ice cream when they have 1680 quarts on hand. Compute the total annual inventory cost including the cost of holding the safety stock.…

    • 1559 Words
    • 7 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    2009 Aicpa Newly Released Question - Business
    • 3469 Words
    • 14 Pages

    2009 Aicpa Newly Released Question - Business

    Wren's total annual fixed costs are $38,400. Wren sells four units of A for every unit of B. If operating income last year was $28,800, what was the number of units Wren sold? a. b. c. d. 5,486 6,000 9,600 10,500…

    • 3469 Words
    • 14 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    QAT1 Task 3 309
    • 611 Words
    • 3 Pages

    QAT1 Task 3 309

    Step 5: Round up to the nearest Unit to get you final answer. In order to minimize total cost, the order size should be 4560 when company A orders new inventory.…

    • 611 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Key Assignment
    • 1158 Words
    • 14 Pages

    Key Assignment

    For the entire year, the company sells 376 units of inventory for $53 each and uses a periodic inventory…

    • 1158 Words
    • 14 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Sample Test2 Fall 2014
    • 1199 Words
    • 8 Pages

    Sample Test2 Fall 2014

    ____ 2. For product M, a firm has an annual holding cost percentage of 20%, an ordering cost of $80 per order, and annual demand of 10,000 units. If they order less than 1,100 units at a time, the purchase price is $10.00. If they order 1,100 or more, then the purchase price for all units is $8.00. What are the possible optimal solutions?…

    • 1199 Words
    • 8 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Khalideoq
    • 815 Words
    • 4 Pages

    Khalideoq

    As the production manager, you need to minimize both ordering and inventory costs. You need to provide a recommendation of the optimal order quantity of raw materials to your plant manager. Your objective is to determine the economic order quantity (EOQ). If the annual demand for Ultamyacin at Smitheford is 400,000 units, then the annual carrying cost rate is 15% of the cost of the unit. The product costs $48/unit to purchase, and the product ordering cost is $28.00".…

    • 815 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Operations Management
    • 3503 Words
    • 15 Pages

    Operations Management

    How Paper is Made (1998). In Pulp and Fiber Products. Retrieved September 17, 2011, from…

    • 3503 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    A Quiz on Throughput Costing
    • 309 Words
    • 2 Pages

    A Quiz on Throughput Costing

    If direct materials are $8.00 per unit, direct labor is $4.00 per unit, variable manufacturing overhead is $6.00 per unit, and fixed costs are $12,000 for the units produced, then what would be the cost assigned to 2,000 of units in ending inventory?…

    • 309 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Operations Management
    • 2215 Words
    • 9 Pages

    Operations Management

    Supply chain management is the coordination of the processes and functions within a business, adopted by most companies in the UK in the late 1990’s. It deals with the internal and external factors that, when dealt with correctly and systematically, can determine a businesses success or failure. A supply chain is the network of activities that delivers a finished product service to the customer. By definition, supply chain management (SCM) is “the management of the flows of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to the customers” (Reid & Sanders). SCM entails the co-ordination of the movement of good through the supply chain from suppliers to manufacturers to distributors to the final customer. The main aim of SCM is to maximise the efficiency of any given process being carried out by a company; by doing this it is allowing them to try to cut their costs and hopefully keep satisfying their customers’ needs, while at the same time maintaining their competitive position within their market. Supply chain management is seen as more of an “open system” in contrast to the traditional system used by the majority of companies just 20 years ago. The new “open system” allows room for change which is greatly needed with the current financial instability of the economy.…

    • 2215 Words
    • 9 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    case analysis
    • 349 Words
    • 2 Pages

    case analysis

    3. If order quantity is decreased to the nearest whole case then the total annual cost would change 2.9%. If order quantity is increased to the nearest whole case the annual cost would change 2.82%.…

    • 349 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Contrast the Significance of the Term Lead Time in the Traditional Eoq Context and in an Mrp System.
    • 2741 Words
    • 11 Pages

    Contrast the Significance of the Term Lead Time in the Traditional Eoq Context and in an Mrp System.

    Economic order quantity is the stage of inventory that minimizes the total inventory investment costs and ordering costs. It is one of the oldest traditional invention scheduling models. The structure used to decide this order size is also known as Wilson EOQ Model or Wilson Formula. The model was developed by F. W. Harris in 1913, but R. H.…

    • 2741 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Good Essays

    Operations Management
    • 1823 Words
    • 8 Pages

    Operations Management

    A conventional “bricks and mortar” grocery does not have an online presence, only a physical one. It is built on a face-to-face customer service, and usually always has a building for their operations. A “brick and mortar” grocery has advantages and disadvantages compared to an online operation, like Theorganicgrocer.com. First of all, their major disadvantage is the overhead. The cost of property, insurance, taxes and staff is much higher for a “brick and mortar” operation than an online operation. The biggest advantage for a “brick and mortar” operation is customer security. To a customer, if a company has physical presence, it is seen as more reliable as the company is far less likely to fold overnight and disappear.…

    • 1823 Words
    • 8 Pages
    Good Essays
    Read More