UA Hamburger Hamlet (UAHH) places a daily order for its high-volume items (hamburger patties, buns, milk, and so on). UAHH count
1 answer:
Answer:
730 items
Explanation:
The objective of the given information is to determine the number of hamburgers UAHH should order for the following conditions:
Average daily demand 600
Standard deviation of demand 100
Desired service probability 99%
Hamburger inventory 800
The formula for a given order quantity in a fixed period of time can be expressed as :
where;
= order quantity = ???
= daily demand average = 600
L = lead time in days = 1
T = time taken = 1
z = no of standard deviation = ???
= standard deviation of usage in lead time and time taken = ???
I = present inventory level = 800
=
× standard deviation of daily demand
=
= 1.4142 * 100
= 141.42 items
From the Desired service probability 99% = 0.99; we can deduce the no of standard deviation by using the excel function (=NORMSINV (0.99))
z = 2.33
From
q = 729.5086 items
q ≅ 730 items
Therefore; the number of hamburgers UAHH should order from the following given conditions = 730 items
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Answer:
Explanation:
Given that:
A mail-order house uses 18,000 boxes a year.
Carrying costs are 60 cents per box a year =$0.60
and ordering costs are $96.
Determine:
A. The optimal order quantity.
The optimal order quantity can be calculated by using the formula:
B. The number of orders per year.
of boxes: 1,000-1,999 Price per box: $1.25
of boxes: 2,000- 4,999 Price per box: $1.20
of boxes: 5,000- 9,999 Price per box : $1.15
of boxes: 10,000 or more Price per box : $1.10
SInce 2400 boxes lies within ''of boxes: 2,000- 4,999 Price per box: $1.20 ''
Total cost = Carrying cost + ordering cost + Purchasing cost
Total cost = ( 1200) 0.60 + 7.5(96) + 1.20(18000)
Total cost = 720 + 720 + 21600
Total cost = $ 23040
If the order size is 5000, the price per box will be 1.15
Total cost = 2500 (0.60) + 3.6 (96) + 20700
Total cost = 1500 + 345.6 + 20700
Total cost = $22545.6
If the order size is 10000 , the price per box will be 1.10
Total cost = 5000 (0.60) + 1.8(96) + 19800
Total cost = 3000 + 172.8 + 19800
Total cost = $22972.8
From the three total cost, the least minimum cost of ordering is: 5000
So; the number of orders per year = total number of boxes per year/ boxes per order
the number of orders per year = 18000/5000
the number of orders per year = 3.6 orders per year