Single Period Model
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Exercise 14A company produces and sells the swimsuits to the market with the following information: - Fixed production cost: $200,000 - Variable production cost per unit: $100. - During the summer season, selling price: $225 per unit. - Salvage value: Any swimsuit not sold during the summer season is sold to a discount store for $80 per unit.
a. Calculate the expected profit if the company produces 10,000 units? b. Calculate the expected profit if the company produces 12,000 units? Exercise 15Single Period Model
- Fixed production cost: $100,000 - Variable production cost per unit: $80. - During the summer season, selling price: $125 per unit. - Salvage value: Any swimsuit not sold during the summer season is sold to a discount store for $20. The company should produce 9,000 units or 16,000 units if a. The manager is risk-taker b. The manager is risk-avoider
Khi tính Reoder point mà đề cho Opening days thì Reoder point = Exercise 18Annual demand of a store is 1,040 phones. The store open 260 days/year. Each phone cost $12.50. The store has to pay a supplier $5 per order every time. They placed holding cost is $1.25 per phone per year. It takes 5 days for supplier to delivers the order to the store. a. What is the economic order quantity? b. Find reorder point c. What is the total annual ordering cost? Exercise 19ABC is the owner of a small company that produces electric knives used to cut fabric. The annual demand is 10,000 for knives, and ABC produces the knives in batches. On average, ABC can produce 80 units per day, the number of working days in a year is 300 days. The cost to set up the production process is VND 3,000,000 and it costs the company VNĐ 5,200/unit/month. Know that, at the start of every batch production the inventory is 200 units. a. How many knives should ABC produce in each batch? b. What is the maximized inventory of the company? c. What is the total annual set up cost and holding cost? Exercise 20XYZ is a manufacturer of electronics equipment. XYZ distributes its product through five regional warehouses. Typically, it takes about 2 weeks to satisfy an order placed by any of the regional warehouses. Currently, XYZ provides their customers with a service level of about 90%. To improve the service level and reduce costs, XYZ would like to consider an alternative distribution strategy in which the five regional warehouses are replaced with a single, central warehouse that will be in charge of all customer orders. The CEO insists that whatever distribution strategy is used, XYZ will design the strategy so that service level is increased to about 96%. The following table provides historical data of weekly demand for a typical product for the last 12 weeks in each of the market areas. An order (placed by the warehouse to the factory) costs $5,000 (per order) and holding inventory costs $1,50 per unit per week.
Suppose you are comparing the two systems for this product only. Compare the average inventory in each system. Which system requires less inventory? Exercise 21Non-Slip Tile Company (NST) has been using production runs of 100,000 tiles, 10 times per year to meet the demand of 1,000,000 tiles annually. The set-up cost is $5,000 per run and holding cost is estimated at 10% of the manufacturing cost of $1 per tile. The production capacity of the machine is 500,000 tiles per month. The factory is open 365 days per year. What is the production order quantity? Holding cost a. What production schedule do you recommend? b. How much is NST losing annually with their present production schedule? c. What is the maximum number of tiles in inventory under the current policy? under the optimal policy? Download 276.6 Kb. Share with your friends:
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