krm8_ism_d - Supplement D = Special Inventory Models...

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

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