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Question;121. The injection molding department of a company uses;40 pounds of a powder a day. Inventory is reordered;when the amount on hand is 240 pounds. Lead time averages;?ve days. It is normally distributed and has a;standard deviation of two days. What is the probability of a;stockout during lead time?;122. A shop owner uses a reorder point approach to;restocking a certain raw material. Lead time is six days.;Usage of the material during lead time is normally;distributed with a mean of 42 pounds and a standard deviation;of 4 pounds. When should the raw material be reordered if;the acceptable risk of a stockout is 3%?;123. The manager of a bakery orders three 'cake-to-go;wedding cakes every Saturday to accommodate last minute;purchases. Demand for the cakes can be described by a;Poisson distribution that has a mean of 2. The cakes cost;$10 each to prepare, and they sell for $26 each. Any cakes;that haven't been sold by the end of the day are sold for half price the next;day. Usually, half of those are sold and the rest are tossed. What stocking;level would be;appropriate?;124. A manager has just received a revised price;schedule from a vendor. What order quantity should the manager;use in order to minimize total costs? Annual Demand is 120;units, ordering cost is $8, and annual carrying cost is;$1 per unit.;A manufacturer is contemplating a switch from buying;to producing a certain item. Setup cost would be the same;as ordering cost. The production rate would be about double;the usage rate.;125. Compared to the EOQ, the economic production;quantity would be approximately;A. the same;B. 20 percent larger;C. 40 percent larger;D. 20 percent smaller;E. 40 percent smaller;126. Compared to the EOQ, the maximum inventory would;be approximately;A. 70 percent higher;B. 30 percent higher;C. the same;D. 30 percent lower;E. 70 percent lower;The manager of the Quick Stop Corner Convenience Store;(which never closes) sells four cases of Stein beer;each day. Order costs are $8.00 per order, and Stein beer;costs $.80 per six-pack (each case of Stein beer contains;four six-packs). Orders arrive three days from the time they;are placed. Daily holding costs are equal to?ve;percent of the cost of the beer.;127. At what point should he reorder Stein beer?;A. 0 cases remaining;B. 4 cases remaining;C. 12 cases remainingD. 16 cases remaining;E. 20 cases remaining;128. If he were to order 16 cases of Stein beer at a;time, what would be the length of an order cycle?;A. 0.25 days;B. 3 days;C. 1 day;D. 4 days;E. 20 days;129. If he were to order 16 cases of Stein beer at a;time, what would be the average inventory level?;A. 4 cases;B. 12 cases;C. 8 cases;D. 20 cases;E. 16 cases;130. If he were to order 16 cases of Stein beer at a;time, what would be the daily total inventory costs;EXCLUDING the cost of the beer?;A. $2.00;B. $4.00;C. $1.28;D. $3.28;E. $2.56;131. What is the economic order quantity for Stein;beer?;A. 8 cases;B. 11 cases;C. 14 cases;D. 20 cases;E. 32 cases;Ann Chovies, owner of the Perfect Pasta Pizza Parlor;uses 20 pounds of pepperoni each day in preparing pizzas.;Order costs for pepperoni are $10.00 per order, and carrying;costs are 4 cents per pound per day. Lead time for;each order is 3 days, and the pepperoni itself costs $3.00;per pound.;132. At what point should she reorder pepperoni?;A. 20 pounds remaining;B. 40 pounds remaining;C. 60 pounds remaining;D. 80 pounds remaining;E. 100 pounds remaining;133. If she were to order 80 pounds of pepperoni;at a time, what would be the length of an order cycle?;A. 0 days;B. 0.25 days;C. 3 days;D. 4 days;E. 5 days;134. If she were to order 80 pounds of pepperoni at a;time, what would be the average inventory level?;A. 20 pounds;B. 40 pounds;C. 60 pounds;D. 80 pounds;E. 100 pounds;135. If she were to order 80 pounds of pepperoni at a;time, what would be the total daily costs, including the cost;of the pepperoni?;A. $60.00;B. $63.20;C. $64.00;D. $64.10;E. $65.00;136. What is the economic order quantity for;pepperoni?;A. 20 pounds;B. 40 pounds;C. 60 pounds;D. 80 pounds;E. 100 pounds;The Operations Manager for Shadyside Savings;Loan orders cash from her home of?ce for her very popular;BIG BUCKS" automated teller machine, which only;dispenses $100 bills. She estimates that this machine;dispenses an average of 12,500 bills per month, and that;carrying a bill in inventory costs 10 percent of its value;annually. She knows that each order for these bills costs;$300 for clerical and armored car delivery costs, and that;order lead time is six days.;137. Assuming a thirty-day month, at what point should;bills be reordered?;A. 0 bills remaining;B. 417 bills remaining;C. 2,500 bills remaining;D. 10,000 bills remaining;E. 12,500 bills remaining;138. Assuming a thirty-day month, if she were to order;6,000 bills at a time, what would be the length of an order;cycle? A. 0.48 days;B. 2.08 days;C. 6 days;D. 8.4 days;E. 14.4 days;139. If she were to order 6,000 bills at a time, what;would be the dollar value of the average inventory level?;A. $3,000;B. $6,000;C. $12,500;D. $300,000;E. $600,000;140. If she were to order 6,000 bills at a time, what;would be the average monthly total costs, EXCLUDING the;value of the bills?;A. $625;B. $1,250;C. $2,500;D. $3,125;E. $37,500;141. What is the economic order quantity?;A. 600 bills;B. 3,000 bills;C. 949 bills;D. 6,215 bills;E. 12,500 bills;Given the following data for a particular inventory;item;142. What is the economic order quantity for this;item?;143. For the economic order quantity, what is the;length of an order cycle?;144. For the economic order quantity, what is the;reorder point?;145. For the economic order quantity, what is the;average inventory level?;146. For the economic order quantity, what are average;weekly ordering costs?;147. For the economic order quantity, what are average;weekly carrying costs?;148. For the economic order quantity, what are average;weekly total costs, including the cost of the inventory;item?;The materials manager for a billiard ball maker must;periodically place orders for resin, one of the raw materials;used in producing billiard balls. She knows that;manufacturing uses resin at a rate of 50 kilograms each day, and;that it costs $.04 per day to carry a kilogram of resin in;inventory. She also knows that the order costs for resin are;$100 per order, and that the lead time for delivery is four;(4) days.;149. At what point should resin be reordered?;A. 0 kilograms remaining;B. 50 kilograms remaining;C. 200 kilograms remaining;D. 400 kilograms remaining;E. 500 kilograms remaining;150. If order size was 1,000 kilograms of resin, what;would be the length of an order cycle?;A. 0.05 days;B. 4 days;C. 16 days;D. 20 days;E. 50 days;151. If the order size was 1,000 kilograms of resin;what would be the average inventory level?;A. 50 kilograms;B. 200 kilograms;C. 500 kilograms;D. 800 kilograms;E. 1,000 kilograms;152. If the order size was 1,000 kilograms of resin;what would be the daily total inventory costs, EXCLUDING;the cost of the resin?;A. $5;B. $10;C. $20;D. $25;E. $40;153. What is the economic order quantity for;resin?;A. 50 kilograms;B. 100 kilograms;C. 250 kilograms;D. 500 kilograms;E. 1,000 kilograms154. A?rm stocks a seasonal item that it buys for;$22/unit and sells for $29 unit. During the season, daily demand can be described using a Poisson distribution with a;mean of 2.4. Because of the nature of the item, units remaining at the close of business each day must be removed;at a cost of $2 each. What is the optimum stocking level, and what is the effective service level? 155. Joe's Coffee Shoppe has fresh doughnuts delivered;each morning. Daily demand for plain doughnuts is approximately normal with a mean of 200 and a standard;deviation of 15. Joe pays $1.20 per dozen and has a standing order for 16 dozen. Joe and the staff eat any;leftovers. What is the implied shortage cost? 156. A restaurant prepares Peking Duck daily at a cost;of $18 per duck. Each duck generates revenue of $47 if sold. Demand for Peking Duck can be described by a Poisson;distribution with a mean of 4.2 ducks per day. Unsold ducks at the end of each day are converted to duck;soup at an additional cost of $5 over and above the resulting value as soup. How many ducks should be prepared;each day? 157. A machine is expected to use approximately three;spare parts during its useful life. The spares cost $200 each and have no salvage value or other use. The manager has;ordered?ve spares. Assuming a Poisson usage rate, what range of shortage cost is implied? 158. A manager intends to order a new machine and must;now decide on the number of spare parts to order along with the machine. The parts cost $400 each and have no;salvage value. The manager has compiled a frequency distribution for the probable usage of spare parts, as;shown. For what range of shortage costs would stocking one spare part constitute an optimal decision?Number of The Corner Newsstand has demand for a certain weekly;magazine that can be approximated by a Poisson distribution with a mean of 9.0. Magazines are purchased for;$1.50. 159. If unsold copies can be returned for half;credit and the owner stocks ten copies, what is the implied range of shortage cost? 160. If unsold copies must be destroyed and copies sell;for $4.00 each,?nd the optimum stocking level. 161. If unsold copies can be returned for half credit;and copies sell for $4.25 each,?nd the optimal stocking level. 162. Demand for a component averages 80 units per week;with a weekly standard deviation of demand of 14 units. The current supplier of this component offers a;four-week lead time. Stockout risk is to be kept at 8%. Assume that it costs $50 to hold one unit in inventory for a;year. Suppose the annual cost for the items would be $500 higher if they were purchased from another vendor, but;that vendor would offer a two-week lead time.;Would it be better to go with the more-expensive but;more-responsive vendor?="msonormal">

 

Paper#56775 | Written in 18-Jul-2015

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