{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# krm8_ism_d - Supplement D = Special Inventory Models...

This preview shows pages 1–3. Sign up to view the full content.

Supplement D Special Inventory Models PROBLEMS 1. Bold Vision Inc. ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 2 ELS 2 625 52 100 1,736 .2 130 1,736 625 250,000 1.5626 500 1.25 625 toner cartridges = - = - = = = DS p H p d 2. Sharpe Cutter a. ( 29 ( 29 ( 29 ( 29 ( 29 2 ELS 2 100,000 300 450 1.20 450 400 7,071.07 3 21,213 knives DS p H p d = - = - = = b. Total annual cost ( 29 ( 29 ( 29 ( 29 2 21,213 450 400 100,000 1.20 300 2 450 21,213 \$1,414.21 \$1,414.22 \$2,828.44 Q p d D C H S p Q - = + - = + = + = c. ( 29 ( 29 ELS 21,213 TBO 250 days year 250 53 100,000 D = = = days d. Production time/lot ELS 21,213 47.1 450 p = = = days

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
82 l PART 3 l Managing Value Chains 3. Sud’s Bottling Company ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 2 ELS 2 600 52 800 2400 .30 12.50 2,400 600 13,312,000 1.333 3,648.56 1.1547 4,213 cases DS p H p d = - = - = = = 4. Bucks Grande major-league baseball In this problem we assume the annual demand is based on a 52-week year. Step 1: Calculate the EOQ at the lowest price (\$48.50): ( 29 ( 29 ( 29 ( 29 2 4 52 70 2 EOQ 39.75 .38 48.50 DS H = = = or 40 bats This solution is infeasible. We cannot buy 40 bats at a price of \$48.50 each. Therefore we calculate the EOQ at the next lowest price (\$51.00): ( 29 ( 29 ( 29 ( 29 2 4 52 70 2 EOQ 38.76 .38 51.00 DS H = = = or 39 bats This solution is feasible. Step 2: Calculate total costs at the feasible EOQ and at higher discount quantities: ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 ( 29 39 39 39 144 144 144 2 4 52 39 .38 \$51.00 \$70 \$51.00 4 52 2 39 \$377.91 \$373.33 \$10,608 \$11,359.24 4 52 144 .38 \$48.50 \$70 \$48.50 4 52 2 144 \$1,326.96 \$101.11 \$10,088 \$11,516.07 Q D C H S PD Q C C C C C C = + + = + + = + + = = + + = + + = a. It is less costly on an annual basis to buy 39 bats at a time. b. The total annual costs associated with buying 39 bats at a time are \$11,359.24.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 8

krm8_ism_d - Supplement D = Special Inventory Models...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online