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A large medical clinic uses 500 cases of floor polish per year. Purchases are made at an ordering cost of $15 per order. Inventory carrying cost is 20% per year. The price schedule, which includes the transportation cost, shows that orders of less than 50 cases will cost $49.95 per case; between 50-79 cases will cost $44.95 per case; and 80+ cases will cost $39.95 per case. Prices apply inclusively to all units bought. What is the optimum purchase order size that should be placed, and what is the total cost?
Explain the BEST strategic planning and implementation/execution you have observed. Discuss fully. Explain the WORST strategic planning and implementation?
Usage of the material during lead time is normally distributed with a mean of 42 pounds also a standard deviation of 4 pounds. When should the raw material be reordered if the acceptable risk of a stock out is 3percent.
Does reducing the number of stocking locations have the potential for reducing system inventories by 20 percent. Is there enough information available to make a good inventory reduction decision.
Support your response with solid reasoning. Would you add one or more principles to the list? What principles would you add and why?
I-mart is a discount optical shop that can fi ll most prescription orders in around 1 hour. The management is analyzing the processes at the store. There currently is one person assigned to each task below.
What is the current multifactor productivity?
Identify the tradeoff that I-mart must consider when deciding whether to go with the airfreight option. What would you recommend? Why? Quantify the costs and benefits of the change.
Compute the centerline for the x-bar chart. Compute the centerline for the R-chart. Compute the upper and lower control limits for the X-bar chart.
The variable cost would decrease $0.25 per unit. Volume for the new also improved product should rise to 50,000 units. Should the organization invest in the new equipment. At illustrate what volume does the equipment choice change.
Identify the reoder point in terms of the inventory position and in terms of the inventory on hard for each of the following lead times.
he criterion shipment methods take two days. Elucidate but for an additional charge of $500, the container can be sent overnight. The annual holding cost rate for this type of item has been estimated at 28percent. Illustrate what option is more ec..
What is the expected number of breakdowns per week and What is the expected breakdown cost per week - What is the weekly total maintenance cost of this program
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