Archives: Solution Manual

Inventory ABC Analysis Input Data Volume Unit cost Dollar volume % Dollar volume Cumulative $- vol % Item 1 560 $150.00 $84,000.00 83.50% 83.50% Item 2 490 $4.10 $2,009.00 2.00% 85.49% ABC Analysis: Items sorted in descending order by dollar […]

Inventory ABC Analysis Input Data Volume Unit cost Dollar volume % Dollar volume Cumulative $- vol % A1500 $4.00 $6,000.00 16.76% 16.76% B1500 $1.00 $1,500.00 4.19% 20.95% C700 $3.00 $2,100.00 5.87% 26.82% ABC Analysis: Items sorted in descending order by […]

Inventory ABC Analysis Input Data Volume Unit cost Dollar volume % Dollar volume Cumulative $- vol % A1750 $10.00 $17,500.00 1.61% 1.61% B300 $1,500.00 $450,000.00 41.38% 42.99% ABC Analysis: Items sorted in descending order by dollar volume Volume Unit cost […]

Inventory ABC Analysis Input Data Volume Unit cost Dollar volume % Dollar volume Cumulative $- vol % Item 1 410 $0.75 $307.50 0.63% 0.63% Item 2 330 $17.00 $5,610.00 11.49% 12.12% ABC Analysis: Items sorted in descending order by dollar […]

Stockout cost per unit = $80 Alternative (ROP) 100 200 300 400 500 EMV 200 $2,500 $0 $8,000 $16,000 $24,000 $8,750 300 $5,000 $2,500 $0 $8,000 $16,000 $4,950 400 $7,500 $5,000 $2,500 $0 $8,000 $4,300 500 $10,000 $7,500 $5,000 $2,500 […]

Problem 12-37 Inventory Safety Stock (Normal DDLT) Input Data Mean DDLT, m 250 Std deviation of DDLT, s25 Service level desired 98.00% (percentage) Carrying cost, Ch Z-value to use 2.05 Results Safety stock, SS 51.00 ROUND function used in cell […]

Problem 12-36 Inventory Safety Stock (Normal DDLT) Input Data Mean DDLT, m 56 Results Safety stock, SS 30.00 ROUND function used in cell B12 Reorder point, ROP 86.00 SS carrying cost $0.00 Std deviation of DDLT, s18 Service level desired […]

Problem 12-35 Inventory Quantity Discount Model Input Data Demand rate, D 3000 Range 1 Range 2 Range 3 Range 4 Minimum quantity 1 601 1101 1551 Unit purchase cost, P $10.00 $9.92 $9.86 $9.80 Results Range 1 Range 2 Range […]

Problem 12-34 Inventory Quantity Discount Model Discount at 200 = (10)x($9.90) + (1/1000)x($3,000) = $102.00 Discount per can = $0.51 Input Data Discount at 300 = (30)x($9.90) + (1/1000)x($3,000) Demand rate, D 1000 = $300.00 Discount at 300 = (30)x($9.90) […]

Problem 12-33 Inventory Quantity Discount Model Input Data Demand rate, D 1000 Results Range 1 Range 2 Range 3 Adjusted order quantity 156.35 157.67 501.00 Total holding cost 351.78 348.84 1,092.81 Total ordering cost 351.78 348.84 109.78 Total purchase cost […]

Problem 12-32 Inventory Quantity Discount Model Input Data Demand rate, D 500 Results Range 1 Range 2 Range 3 Range 4 Adjusted order quantity 173.21 173.21 350.00 600.00 Total holding cost 173.21 173.21 350.00 600.00 Total ordering cost 173.21 173.21 […]

Problem 12-31 Inventory EOQ Model Input Data Demand rate, D 5000 Results Number of orders 9.13 Total holding cost $136.93 Total ordering cost $136.93 Total purchase cost $0.00 Total cost $273.86 Economic order quantity, Q* 547.72 Maximum inventory 547.72 Average […]

Stockout cost per unit = $50 Alternative (ROP) 600 650 700 750 800 850 900 950 1000 1050 1100 EMV 600 $0 $12,500 $25,000 $37,500 $50,000 $62,500 $75,000 $87,500 $100,000 $112,500 $125,000 $32,875 650 $500 $0 $12,500 $25,000 $37,500 $50,000 […]

Inventory ABC Analysis Input Data Volume Unit cost Dollar volume % Dollar volume Cumulative $- vol % U1 1110 $2.00 $2,220.00 2.21% 2.21% V2 1110 $5.40 $5,994.00 5.96% 8.17% ABC Analysis: Items sorted in descending order by dollar volume Volume […]

Problem 12-28 Inventory Safety Stock (Normal DDLT) Inventory Safety Stock Input Data Input Data Mean DDLT, m 600 Mean DDLT, m 600 Std deviation of DDLT, s70 Std deviation of DDLT, s70 Service level desired 95.00% (percentage) Service level desired […]

Stockout cost per unit = $50 Alternative (ROP) 40 50 60 70 80 90 EMV 50 $50 $0 $3,500 $7,000 $10,500 $14,000 $5,605 60 $100 $50 $0 $3,500 $7,000 $10,500 $3,170 70 $150 $100 $50 $0 $3,500 $7,000 $1,445 80 […]

Problem 12-26 Inventory Quantity Discount Model Input Data Demand rate, D 1000 Range 1 Range 2 Minimum quantity 0 200 Unit purchase cost, P $50.00 $48.50 Results Range 1 Range 2 Adjusted order quantity 80.00 200.00 Total holding cost 500.00 […]

Problem 12-25 Inventory Economic Production Quantity Model Input Data Demand rate, D 100000 Setup cost, Cs$400.00 Carrying cost, Ch$6.00 (fixed amount) Daily production rate, p 5000 Daily demand rate, d 500 Unit purchase cost, P Results Economic production quantity, Q* […]

Problem 12-24 Inventory Economic Production Quantity Model Input Data Demand rate, D 75000 Setup cost, Cs$800.00 Carrying cost, Ch$0.90 (fixed amount) Daily production rate, p 1000 Daily demand rate, d 250 Unit purchase cost, P Results Economic production quantity, Q* […]

Problem 12-23 Freq Ordering cost EOQ Inventory EOQ Model 85 $45 1341.64 95 $46 1356.47 90 $47 1371.13 Input Data 80 $48 1385.64 Results Economic order quantity, Q* 1373.07 Note down the EOQ value each time. Maximum inventory 1373.07 Average […]

Problem 12-22 Inventory EOQ Model Inventory EOQ Model Input Data Input Data Demand rate, D 48000 Demand rate, D 48000 Ordering cost, Co$75.00 Ordering cost, Co$75.00 Carrying cost, Ch$45.00 (fixed amount) Carrying cost, Ch$45.00 (fixed amount) Unit purchase cost, P […]

Problem 12-21 Inventory EOQ Model Inventory EOQ Model Input Data Input Data Results Results Economic order quantity, Q* 50.00 = 5,000 / 100 Economic order quantity, Q* 200.00 200 * 100 = 20,000 cu ft Maximum inventory 50.00 Maximum inventory […]

Inventory EOQ Model Input Data Demand rate, D 24000 Results Average inventory 685.99 Number of orders 17.49 Total holding cost $2,099.14 Total ordering cost $2,099.14 Total purchase cost $408,000.00 Total cost $412,198.29 Economic order quantity, Q* 1371.99 Maximum inventory 1371.99 […]

Problem 12-19 (a) Inventory EOQ Model Input Data Demand rate, D 80000 Results Average inventory 478.09 Number of orders 83.67 Total holding cost $3,346.64 Total ordering cost $3,346.64 Total purchase cost $0.00 Total cost $6,693.28 Reorder point, ROP 11250 Economic […]

Problem 12-18 Inventory EOQ Model Input Data Demand rate, D 1000 Results Average inventory 70.71 Number of orders 7.07 Total holding cost $141.42 Total ordering cost $141.42 Total purchase cost $10,000.00 Total cost $10,282.84 Economic order quantity, Q* 141.42 Maximum […]

Problem 12-17 Inventory EOQ Model Input Data Demand rate, D 45,000 D = (EOQ^2)*(I x P) / (2 x Co) Ordering cost, Co$150.00 Carrying cost %, I 25.00% (percentage) Unit purchase cost, P $600.00 Results Economic order quantity, Q* 300.00 […]

Problem 12-16 Inventory EOQ Model Input Data Demand rate, D 6000 Ordering cost, Cs$45.00 Results Average inventory 118.59 Number of orders 25.30 Total holding cost $1,138.42 Total ordering cost $1,138.42 Total purchase cost $720,000.00 Total cost $722,276.84 Reorder point, ROP […]

Problem 12-15 (a) Inventory EOQ Model Input Data Demand rate, D 150000 Results Average inventory 19364.92 Number of orders 3.87 Total holding cost $116.19 Total ordering cost $116.19 Total purchase cost $0.00 Total cost $232.38 Economic order quantity, Q* 38729.83 […]

locations within the organization. This can be done by determining how much inventory is to be ordered and when the inventory should be ordered. Therefore, a delicate balance must be sought between increased carrying costs and shortages and stockouts. In […]

Inventory EOQ Model Input Data Demand rate, D 2000 Ordering cost, Co$10.00 Results Average inventory 91.06 Number of orders 10.98 Total holding cost $109.82 Total ordering cost $109.82 Total purchase cost $20,100.00 Total cost $20,319.64 Economic order quantity, Q* 182.12 […]

ordering extra quantities judiciously, Mr. Randell has managed to keep WRO almost totally supplied with the requisite number of Levi 501s. Further, since the actual solution is so close to the model solution, and since we have seen that the […]

Inventory Quantity Discount Model Input Data Demand rate, D 192000 Results Range 1 Range 2 Range 3 Range 4 Adjusted order quantity 678.82 7001.00 8001.00 20001.00 Total holding cost 25,455.84 241,534.50 264,033.00 630,031.50 Total ordering cost 25,455.84 2,468.22 2,159.73 863.96 […]

complete system, additional tape units could be demanded. An increase in demand could change the outcome of the quantity discount model. The second strategy would also have an impact on the results of the analysis. At this time, two videotape […]

Inventory EOQ Model Input Data Demand rate, D 499.5 (in thousands of feet) Ordering cost, Cs$50.00 Total ordering cost $719.01 Total purchase cost $206,793.00 Total cost $208,231.03 Reorder point, ROP 115.27 Internet Case: Laplace Power & Light Co. (Optimal) Carrying […]

CHAPTER 12 INVENTORY CONTROL MODELS Internet Case Study: Laplace Power and Light Co. The optimal order quantity is 34,740 feet (see file Ch12 Internet Case Laplace Power.XLS, sheet Optimal). The reorder point is (daily demand) × (lead time) = 115,270 […]

Inventory Quantity Discount Model Input Data Range 1 Range 2 Range 3 Minimum quantity 0 101 501 Unit purchase cost, P $25.00 $24.00 $22.00 Results Range 1 Range 2 Range 3 Adjusted order quantity 391.92 400.00 501.00 Total holding cost […]

units/month × 12 months/yr.). For Collins (see file Ch12 Internet Case Drake Radio.XLS, sheet Collins), the lowest total cost is $213,535.83 with an associated EOQ of 501 units. For Nitobitso (see file Ch12 Internet Case Drake Radio.XLS, sheet Nitobitso), the […]

Inventory EOQ Model Input Data Demand rate, D 5000 Ordering cost, Cs$20.00 Results Maximum inventory 182.57 Average inventory 91.29 Number of orders 27.39 Total holding cost $547.72 Total ordering cost $547.72 Total purchase cost $300,000.00 Total cost $301,095.45 Reorder point, […]

Inventory EOQ Model Input Data Demand rate, D 439 Ordering cost, Co$65.00 Martin-Pullin Bicycle Corp. (EOQ) Carrying cost, Ch$12.24 (fixed amount) Unit purchase cost, P Results Economic order quantity, Q* 68.28 Maximum inventory 68.28 Average inventory 34.14 Number of orders […]

Forecasting Multiplicative decomposition 4 seasons Input Data Seasonal Index Computation Forecast Error analysis Period Actual value (Y) Time period (X) Centered average Seasonal ratio Seasonal index Unseason alized value Unseason alized Forecast Seasonali zed Forecast Error Absolute error Squared error […]

Forecasting 4 period moving average Input Data Forecast Error Analysis Period Actual Value Forecast Error Absolute error Squared error Absolute % error Quarter 1 294 Quarter 2 499 Quarter 3 437 Quarter 4 344 Quarter 5 335 393.500 -58.500 58.500 […]

Forecasting Multiplicative decomposition 4 seasons Input Data Seasonal Index Computation Forecast Error analysis Period Actual value (Y) Time period (X) Centered average Seasonal ratio Seasonal index Unseason alized value Unseason alized Forecast Seasonali zed Forecast Error Absolute error Squared error […]

Forecasting 4 period moving average Input Data Forecast Error Analysis Period Actual Value Forecast Error Absolute error Squared error Absolute % error Quarter 1 263 Quarter 2 300 Quarter 3 245 Quarter 4 381 Quarter 5 312 297.250 14.750 14.750 […]

Forecasting Multiplicative decomposition 12 seasons Input Data Seasonal Index Computation Forecast Error analysis Unseason Unseason Seasonali Month 9 3.280 9 3.245 1.011 1.013 3.239 3.246 3.288 -0.008 0.008 0.000 0.24% Month 10 3.274 10 3.284 0.997 1.003 3.265 3.258 3.267 […]

Forecasting Exponential smoothing Input Data Forecast Error Analysis Period Actual value Forecast Error Absolute error Squared error Absolute % error Month 2 2.955 2.972 -0.017 0.017 0.000 0.58% Month 3 2.991 2.964 0.027 0.027 0.001 0.89% Month 4 3.117 2.976 […]

Forecasting Multiplicative decomposition 4 seasons Input Data Seasonal Index Computation Forecast Error analysis Period Actual value (Y) Time period (X) Centered average Seasonal ratio Seasonal index Unseason alized value Unseason alized Forecast Seasonali zed Forecast Error Absolute error Squared error […]

Forecasting Exponential smoothing Input Data Forecast Error Analysis Period Actual value Forecast Error Absolute error Squared error Absolute % error Quarter 1 9027 9027.000 Quarter 2 9092 9027.000 65.000 65.000 4225.000 0.71% Quarter 3 9194 9092.000 102.000 102.000 10404.000 1.11% […]

Forecasting Multiplicative decomposition 4 seasons Input Data Seasonal Index Computation Forecast Error analysis Period Actual value (Y) Time period (X) Centered average Seasonal ratio Seasonal index Unseason alized value Unseason alized Forecast Seasonali zed Forecast Error Absolute error Squared error […]

Forecasting Multiplicative decomposition 12 seasons Input Data Seasonal Index Computation Forecast Error analysis Period Actual value (Y) Time period (X) Centered average Seasonal ratio Seasonal index Unseasona lized value Unseasona lized Forecast Seasonaliz ed Forecast Error Absolute error Squared error […]

Forecasting Multiple regression Input Data Forecasts and Error Analysis Y x 1 x 2 Forecast Error Absolute error Squared error Absolute % error Year 1 41.000 4000.000 82.000 42.449 -1.449 1.449 2.101 03.54% Year 2 38.000 3500.000 64.000 38.553 -0.553 […]