Question

Bruno Fruscalzo decided to start a small production facility in Sydney to sell gelato to the local restaurants. His local milk supplier charges $0.50 per kg of milk plus a $21 delivery fee (the $21 fee is independent of the amount ordered). Bruno’s holding cost is $0.03 per kg per month. He needs 9000 kg of milk per month.

**Round your answer to 3 digits after the decimal point.
Do NOT use comma in your numeric answers.**

Suppose Bruno orders 9000 kg each time. His average inventory is _______ kg.

Suppose Bruno orders 7000 kg each time. He needs to place ______ orders with his supplier each year to meet demand exactly.

Bruno should order _______ kg each time in order to minimize the annual ordering and holding costs.

If Bruno’s storage vessel can hold at most 3000 kg of milk, then Bruno should order ______ kg each time in order to minimize the annual ordering and holding costs. The minimized annual ordering and holding costs will be $ ________.

If Bruno’s storage vessel can hold at most 6000 kg of milk, then Bruno should order _______ kg each time in order to minimize the annual ordering and holding costs. The minimized annual ordering and holding costs will be $ ________.

Bruno’s supplier offers a 5% discount when a customer orders a full truck, which is 20000 kg. Assume Bruno can store that quantity and the product will not spoil. If Bruno orders a full truck, then the annual inventory holding cost will be $ _______ per kg, the annual purchasing cost will be $ _______, and the annual ordering and holding costs will be $ _______.

Answer #1

Bruno Fruscalzo decided to start a small production facility in
Sydney to sell gelato to the local restaurants. His local milk
supplier charges $0.50 per kg of milk plus a $21 delivery fee (the
$21 fee is independent of the amount ordered). Bruno’s holding cost
is $0.03 per kg per month. He needs 9000 kg of milk per month.
Round your answer to 3 digits after the decimal point.
Do NOT use comma in your numeric answers.
If Bruno’s storage...

Bruno Fruscalzo decided to start a small production facility in
Sydney to sell gelato to the local restaurants. His local milk
supplier charges $0.5 per kg of milk plus a $25 delivery fee (that
is independent of the amount ordered). Bruno’s holding cost is
$0.02 per kg per month. He needs 9750 kgs of milk per month.
a.Suppose Bruno orders 9250 kgs each time. What is his average
inventory (kgs)?
b.Suppose Bruno orders 7000 kgs each time. How many orders...

Sarah’s Organic Soap Company makes organic liquid soap. One of
the raw materials for her soaps is organic palm oil. She needs 500
kgs of palm oil per day on average. The supplier charges a $55
delivery fee per order (which is independent of the order size) and
$5.5 per kg. Sarah’s annual holding cost is 15%. Assume she
operates and sells 5 days per week, 52 weeks per year.
a.If Sarah wants to minimize her annual ordering and inventory...

Please complete all work in excel. Use excel to make the
calculations (cells can be clicked on to view any formulas used)
and be sure to identify your answer, including units.
A manager needs to buy raw materials for the production process.
For a particular raw material, the manager uses 20,000 units each
year. The supplier has quoted a price of $6.50 per unit for an
order size of 999 units or less, a price of $6 per unit for...

PLEASE SHOW ALL WORK IN EXCEL!!!!!!!
SHOW CALCULATIONS / FORMULAS IN
ANSWER!!!!!!!!
You need to buy raw materials for your production process. You
use 2,000 units of the raw material each year. The supplier quotes
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less, a price of $9 per unit for orders of 500 to 1499 units, and a
price of $8.50 per unit for an order of 1,500 or more units. You...

You are hired to manage the inventory of product X. The annual
demand for product X is normally distributed with mean 1000 and
standard deviation 400. The warehouse you rent charges you $1 per
item per month for holding product X. Each time you place an order,
you pay $60 for customs fee. Please use the above information to
answer the following three questions.
a. What is your optimal order quantity that minimizes the total
annual ordering and holding costs?...

The owner of the Beachcomber Hair Salon in Galveston, Texas,
orders bottles of professional shampoo from a local beauty care
distributor. Based on the store's popularity, the owner is
considering adding two more chairs to accommodate more customers
each day. To make room for the new chairs, however, the owner must
reduce the size of the storage area used for all of the supplies.
Specically, she estimates that there will only be space to store 20
bottles at a time....

1. The use of a production smoothing
strategy creates inventory for products that experience a seasonal
fluctuation in demand. True or False ?
2. Companies belonging to the same
industry segment should have the same inventory
turns. True or False ?
3. Which of the following is a work-in-process inventory for
C&A Bakery?
A. Flour
B. Cupcakes freshly out of the oven
C. Ovens
D. Cupcake mix prepared from scratch
4. C&A has on average $6000 in inventory and its daily...

Question 2 A car engine manufacturer has the
following production goals for the next year:
Engine
Quantity
Machine Req’s
V6
2000
6hrs
V8
1500
10hrs
V12
100
20hrs
If all three engines can be produced by the same machines and
each of the manufacturer’s machines operate for 2400 hours per
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Question 3
A manufacturing operation has three stages:
•Stage 1 Capacity: 400 units/hr
•Stage 2 Capacity: 300 units/hr
•Stage...

A particular type of rubber is used in the production of tennis
balls and the company must decide on three different suppliers.
Supplier A will sell the rubbers for $1.50 per rubber and will not
accept any orders fewer than 7,000. Supplier B will sell the
rubbers for $1.40 each but will not consider an order for greater
than 8,500 rubbers, and Supplier C will sell the rubbers for $1.35
each but will not accept an order for greater than...

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