Determine the following: a. Optimal order size b. Minimum total annual inventory cost c. Reorder point (Chapter 14). Determine the cost of each strategy. Which strategy would you recommend?

Assignment Question

Problems (10 Pts. Each): These problems are word/mathematical problems. Templates will be provided for select problems. You can complete these problems in Excel and/or Word. For Unit 7, the following four problems are assigned: (Chapter 13) Problem 13.1 (page 582): AV City stocks and sells a particular brand of laptop. It costs the firm $625 each time it places an order with the manufacturer for the laptops. The cost of carrying one laptop in inventory for a year is $130. The store manager estimates that total annual demand for the laptops will be 1500 units, with a constant demand rate throughout the year. Orders are received within minutes after placement from a local warehouse maintained by the manufacturer. The store policy is never to have stockouts of the laptops. The store is open for business every day of the year except Christmas Day.

Determine the following: a. Optimal order quantity per order b. Minimum total annual inventory costs c. The number of orders per year d. The time between orders (in working days) (Chapter 13) Problem 13.9 (page 583): The Food Place Supermarket stocks Munchkin Cookies. Demand for Munchkins is 5000 boxes per year (365 days). It costs the store $80 per order of Munchkins, and it costs $0.50 per box per year to keep the cookies in stock. Once an order for Munchkins is placed, it takes four days to receive the order from a food distributor.

Determine the following: a. Optimal order size b. Minimum total annual inventory cost c. Reorder point (Chapter 14) Problem 14.1 (page 635): Care Alliance (CA), a manufacturer of emergency care kits for disaster relief, has received the annual disaster readiness plans from its major constituents and now must develop an operations plan to set production, labor, and inventory levels of its basic emergency products for the next four quarters. Demand for the kits, given below, varies with seasonal weather, political climate, and economic conditions. The average worker at CA can produce 10,000 kits a quarter at a cost of $9 per kit. The cost of holding inventory is $2 per kit per quarter. Due to the medical nature of many of its products and concern for quality, hiring and firing costs are $700 per worker. CA currently employs 20 workers. Given the demand forecast below, develop a quarterly operations production plan for CA using (a) chase demand and (b) level production: Quarter Demand 1 150,000 2 250,000 3 350,000 4 250,000 (Chapter 14) Problem 14.10/14.4 (pages 637, 635): (Problem 14.10, p. 637)Design a production plan for Rowley Apparel in Problem 14.4 using linear programming and Excel Solver. (Problem 14.4, p. 635): Rowley Apparel, manufacturer of the famous “Race-A-Rama” swimwear line, needs help planning production for next year. Demand for swimwear follows a seasonal pattern, as shown here. Given the following costs and demand forecasts, test these four strategies for meeting demand: (a) Level production with overtime and subcontracting, as needed, (b) level production with backorders as needed, (c) chase demand, and (d) 3000 units regular production from April through September and as much regular, overtime, and subcontracting production in the other months as needed to meet annual demand. Determine the cost of each strategy. Which strategy would you recommend? Month Demand Forecast January 1000 February 500 March 500 April 2000 May 3000 June 4000 July 5000 August 3000 September 1000 October 500 November 500 December 3000