Reference no: EM132182815

1. Mungo Pet Supplies makes cat trees for several pet store chains. They order rolls of carpet (used to cover the trees) from a supplier. Mungo’s management has decided to use an EOQ model. The annual demand for carpet is estimated to be 1,000 rolls. The purchase price per roll is $20 and estimated inventory carrying cost rate is 25%. The cost to place an order from the supplier is $30. What is the average inventory amount that Mungo can expect to hold at any one time?

a 1000

b 109.5

c 54.7

d 500

2. A firm sold 23,000 units of a particular product. In Q2, the firm sold 25,000, and in Q3 22,850 units were sold. Assume weights of 0.5, 0.3, and 0.2 (descending for older data). What is the three period weighted moving average forecast for Q4?

a 23,525

b Forecast for Q4 cannot be determined from the information given

c 22,850

d 23,616

3. A company is considering Pittsburgh, Philadelphia, and Baltimore as candidate locations for a new facility. For the weighted-factor rating technique, the company is evaluating each location on three factors (distance to customers, labor costs, and utility costs). The factors are weighted 0.5, 0.3, and 0.2, respectively. Pittsburgh received scores of 90, 75, and 65 for the three factors. Philadelphia received scores of 85, 82, and 70. Baltimore received scores of 82, 85, and 75. Which of the three cities is ranked second by the weighted-factor rating technique?

a Cannot be determined from the information given

b Baltimore

c Pittsburgh

d Philadelphia