The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 60 cars per month. The cars cost $70 each, and ordering costs are approximately $15 per order, regardless of the order size. The annual holding cost rate is 20%.

Required:
a. Determine the economic order quantity and total annual cost under the assumption that no backorders are permitted.
b. Using a $45 per-unit per-year backorder cost, determine the minimum cost inventory policy and total annual cost for the model racing cars.
c. What is the maximum number of days a customer would have to wait for a backorder under the policy in part (b)? Assume that the Hobby Shop is open for business 300 days per year.
d. Would you recommend a no-backorder or a backorder inventory policy for this product? Explain.

Answers

Answer 1

Answer:

Step-by-step explanation:

A) Demand per month= 40 cars

Annual Demand (D)= 12*40 = 480

Fixed Cost per order (K)= 15

Holding Cost= 20% of cost= 60 *0.2 = 12

a. Economic Order Quantity=

Q^{*}={\sqrt {{\frac {2DK}{h}}}}

= √(2*480*15)/12

=34.64 ~ 35

Total Cost =P*D+K(D/EOQ)+h(EOQ/2) P= Cost per unit

= 60*480+ 15(480/35) + 12(35/2)

= 28800+ 205.71+ 210

=$29215.71

B). Backorder Cost (b)= $45

Qbo= Q* × √( b+h/ h)

= 35*√(12+45/ 45)

= 35* 1.12

=39.28 ~ 39

Shortage (S)= Qbo * (K/K+b)

= 39* (15/15+45)

= 39* 0.25

= 9.75

Total Cost Minimum=( bS2/ 2Qbo) + P (Qbo- S)2/2Qbo + K(D/Qbo)

=45* 9.752 / 2* 392 + 60 (39-9.75)2/ 2* 392 + 15 ( 480/39)

= 1.40+ 21.9.+ 184.61

=$207.91

C)Length of backorder days (d) = Demand ÷ amount of working days

d = 480 ÷ 300

d = 1.6

Calculate the backorders as the maximum number of backorders divided by the demand per day

s/d = 9.75/1.6 = 6.09 days (answer)

D) Calculate the difference in total between not using backorder:

$207.85 + $207.85 - 207.91 = $207.79

The saving in using backorder is $207.79.

Therefore I would recommend using a backorder


Related Questions

Casey borrowed $4500 at a 5% interest rate for 4 years.
What was the total interest?
Enter your answer in the box.
Hint: Use the formula l=P*R*T where
I= Interest Earned/Owed
P= Principal
R= Rate
T= Time

Answers

Answer:

  $900

Step-by-step explanation:

Put the numbers in the formula and do the arithmetic.

  I = PRT

  I = ($4500)(0.05)(4) = $900

The total interest was $900.

[tex]\large\tt\green{Answer}[/tex]

The total interest was $900

[tex]\large\tt\green{Step-by-step \: explanation}[/tex]

Step 1:

Put the numbers in the formula and do the arithmetic.

I = P × R × TI = $4500 × 5% × 4

Step 2:

Rename 5% into decimal

I = P × R × TI = $4500 × 0.05 × 4

Step 3:

Solve the problem with the full solution.

I = P × R × TI = $4500 × 5% × 4I = $4500 × 0.05 × 4I = $ 900

Therefore, the total interest was $900

Sarah buys a new car for $26,500 and pays 3% down payment the terms of her loan 4.5% apr over 4 years. How much is her monthly payment?
A. $586.16
B.558.99
C.562.61
D.549.74

Answers

Answer:

i guess it's will be C

Step-by-step explanation:

Evaluate 3x + 34 if x = 5.

Answers

Answer:

49

Step-by-step explanation:

3x + 34

x = 5

3 * 5 + 34

15 + 34

49

3x+34
3(5)+34
15+34
49
X=49

Please help mee!!! I really need it Thank youu!!! <3

Answers

Answer:

k < 3  should do it

Step-by-step explanation:

Which expression is equivalent to 3(2t + 6) – 4t?
A. 8t
B. 20t
C. 2t +6
D. 2t +18
HELP PLS

Answers

Answer:

b part 20 t or i think c part 2t +6

It’s D I used quick math

Find the length of the diagonal of square if each side of the square is 16 inches long. Give in simplest radical form where possible.

Answers

d≈22.63in I hope this helps

You start at (5, 0). You move left 1 unit and up 1 unit. Where do you end?

Answers

Answer:

(4; 1)

Step-by-step explanation:

Look at the picture.

(x, y)

left 1 unit: (5 - 1 = 4)

up 1 unit: (0 + 1 = 1)

Please help! I need help with this question.

Answers

Answer:

check online for more information

You plant 9 rows of different bulbs in a garden. For each row, you use the rule, “onion, onion, garlic, flower.” How many garlic and flower bulbs do you plant altogether? How many bulbs do you use in all?

Answers

Answer:

18; 36

Step-by-step explanation:

If there's 9 rows of "onion, onion, garlic, flower", then you repeat this cycle 9 times.

onion, onion, garlic, flower(1)

onion, onion, garlic, flower(2)

onion, onion, garlic, flower(3)

onion, onion, garlic, flower(4)

onion, onion, garlic, flower(5)

onion, onion, garlic, flower(6)

onion, onion, garlic, flower(7)

onion, onion, garlic, flower(8)

onion, onion, garlic, flower(9)

Add up the garlic and flower bulbs, which equals 18. Then add up all of the bulbs, which is 36.

-hope it helps

Help pls!!!! Help PLs Help pls

Answers

Answer: mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

Step-by-step explanation:

Please Like!

PLZ HELP WITH ME WITH MY MATH HOMEWORK!!!!! SHOW WORK!!!!!

Answers

Explanation:

(I). 5/6 (4X+8) = (3/8) X - (1/4)

→ [{5(4X) + 5(8)}/6] = (3/8)X - (1/4)

→ [{20X + 40}/6] = (3/8)X - (1/4)

→ [{(20X/6) + (40/6) = (3/7)X - (1/4)

Now,

shift all variables fraction on LHS and constant fraction on RHS.

→ [(20X/6) - (3X/7)]= -(1/4) - (40/6)

Take the LCM of LHS denominator of 6&7 is 42.

→ [(140X - 18X)/42] = -(1/4)-(40/6)

→ [(122X)/42] = -(1/4)-(40/6)

Again take the LCM of the denominator in RHS i.e 4&6 is 12.

→ [(122X)/42] = (-12 - 80)/4

→ [(122X)/42] = (-92)/4

By doing Cross multiply the fraction, we get

→ 4(122X) = 42(-92)

→ 488X = -3 864

→ X = -3 864÷488

Therefore, X = -3864/488

Answer: Hence, the value of X for the given problem is -3864:488.

Explanation:

ii)Given algebraic equation is: 5(3p-5)+4p=5p-6(p+4)

→ 15p - 25 + 4p = 5p - 6p + 24

Shift all variables in LHS and constant on RHS.

→ 15p + 4p +6p = 25+24

→ 19p + 6p = 49

→ 25p = 49

Shift the number 25 from LHS to RHS.

Therefore, p = 49/25.

Answer: Hence, the value of P for the given algebraic equation is 49/25.

A ladder is 65 inches tall. How tall is it in feet and inches?

Answers

1 foot = 12 inches

65 inches / 12 = 5.41 feet

5 x 12 = 60

65-60 = 5

Answer: 5 feet 5 inches

Negative five times a number decreased by ten is negative twenty five

What is the equation

Answers

-5x-10=-25 not sure if it’s correct!!!!

Gemma and Leah are both jewelry makers, Gemma made 106 beaded necklaces. Leah
made 39 more necklaces than Gemma.
Each necklace they make has exactly 104 beads on it. How many beads did both
Jewelers use altogether while making their necklaces? How many necklaces did Gemma and Leah each make

Answers

Answer:

Gemma made $34 more than Leah.

Step-by-step explanation:

Gemma made number of beaded necklaces = 106

Leah made 39 more necklaces than Gemma.

Leah made number of beaded necklaces  = 106 + 39 = 145

a. There are 104 beads on each necklace.

The total number of beads used altogether

= (106 × 104) + (145 × 104)

= 11,024 + 15,080

= 26,104

b. Gemma sold her 106 necklaces for = $14

Total price of her necklaces = 106 × 14

                                              = $1,484

Leah sold her 145 necklaces for = $10

Total price of her necklaces = 145 × 10

                                              = $1,450

Difference in Gemma and Leah's amount = 1484 - 1450 = $34.00

Therefore, Gemma made $34.00 more money than Leah.

PLEASE HELP ME!!!
Which expression has a value of 8?

a: 10−(−2)

b: (−10)−(−2)

c:(−2)−(−10)

d: (−2)−10

Answers

Answer:

c:(-2)-(-10)

Step-by-step explanation:

When two minus symbols are next to each other in an expression, they become a plus sign.

a: 10-(-2)

   10+2

     12

b: (-10)-(-2)

     -10+2

        -8

c: (-2)-(-10)

     -2+10

        8

d: (-2)-10

      -12

C.

-2 - -10= 8

The negative stays the same. The two dashes in between 2 and 10 become pluses.

10 - 2 = 8

The bigger number positive or negative is the dominant passing down their + or - to the value.

Multiply. Write the answer in simplest form. 3/7 x 2 5/6

Answers

193/42

3×6+25×7÷4218+175÷42193/42

Solve for x.

5(x−4)2=4x+14


x = 9

x = 8

x=−6

x=−16

Answers

Answer:

9 is the answer.

Step-by-step explanation:

5(x − 4)2 = 4x + 14

=> 10x - 40 = 4x + 14

=> 6x = 54

=> x = 9

Therefore, 9 is the answer.

Hoped this helped.

The value of the x after solving the equation 5 (x - 4) 2 = 4x + 14 is x = 9.

What are Linear Equations?

Linear equations are equation involving one or more expressions including variables and constants and the variables are having no exponents or the exponent of the variable is 1.

Given linear equation,

5 (x - 4) 2 = 4x + 14

5 × 2 (x - 4) = 4x + 14

10 (x - 4) = 4x + 14

By distributive property, p (q + r) = p q + p r

10x - (10 × 4) = 4x + 14

10x - 40 = 4x + 14

10x - 4x = 14 + 40

6x = 54

x = 54 / 6

x = 9

Hence the value of x is 9.

To learn more about Linear Equations, click on the link given below :

https://brainly.com/question/11897796

#SPJ2

if you are in a 200 meter race and finish 19 meters ahead of your opponent, if you were to run the race again, where woild you have to start to end the race in a tie?

Answers

Answer:

i haven't done this in years but i'm pretty sure -19 meters

Step-by-step explanation:

What is the solution to this system?
8

Answers

Answer:

(2,2)

Step-by-step explanation:

The solution to a system is the point on the graph where both lines intersect.

Miriam has 3 packages of pencils. Each
package has 6 pencils. She needs an
eraser for each pencil. How many erasers
will she need to buy?

Tell which OPERATIONS you will use. Then
solve the problem. (Very important).

Answers

Answer:

18

Step-by-step explanation:

you will use multiplication

3(packages of pencils)×6(pencils)=18pencils

so she will need 18 erasers for each pencil

You need to buy bananas at the store, but you realize you only have $2. How many bananas could you buy if they each cost 30 cents?

Answers

Answer:

6 bananas

Step-by-step explanation:

2 ÷ 0.30 = 6.6 repeating so 6 bananas

I’m begging you please please answer my question please please answer me please please

Both factors of 20 and 10
Factors of 20 but not 10
Neither factors of 20 and 10

Answers

Answer:

Factors of 20 and 10: P ∪ Q

Factors of 20 but not 10: U ∩ (P ∪ Q)c

Neither factors of 20 or 10: (P ∪ Q)c

5x – 1 = 7x – 4


operacion y comprobacion prfa

Answers

Answer:

x=3/2 Espero que esto te ayude

Answer:

x=3/2

hope this helps mate

What is the vertex of f(x) = 3Ix-2I +4?

Answers

Answer: (2,4)

Step-by-step explanation:

Vertex

|0-2| = 0

|-2| = 0

The graph is shifted 4 units up so therefore (2,4) is the vertex

Two pieces of equipment were purchased for a total of $5000. If one piece cost $410 more than the other, find the price of the less expensive piece of equipment

Answers

Answer:

correct answer explained above

8) A school community had planned to reduce the number of grade 9 students per class room by constructing additional class rooms. However, they constructed 4 less rooms than they planned. As the result, the number of students per class 10 more than they planned. If there are 1200 grade nine students in the school, determine the current number of class rooms and the number of students per class.​

Answers

Step-by-step explanation:

Let "c" be the original number of classrooms.

The 1200/c was the original number of students per classroom.

----

Equation:

1200/(c-4) = (1200/c)+10

Multiply thru by c(c-4)

---

1200c = 1200(c-4)+10c(c-4)

---

1200c = 1200c-4800 + 10c^2-40c

----

10c^2-40c-4800 = 0

c^2-4c-480 = 0

Factor:

(c-24)(c+20) = 0

---

Positive solution:

c = 24 (# of classrooms originaly planned)

pls help me!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Answers

Answer:

2 dashes to the left

Step-by-step explanation:

just plot a point two dashes to the left

Here is the answer to your question

What is the slope of the line?

Answers

Answer:

[tex] - \frac{2}{3} [/tex]

Step-by-step explanation:

Pick two points on the graph: (4, -5) and (1, -3)

[tex]\boxed{ slope = \frac{y _{1} - y_2 }{x_1 - x_2} }[/tex]

Slope

[tex] = \frac{ - 5 - ( - 3)}{4 - 1} [/tex]

[tex] = \frac{ - 5 + 3}{3} [/tex]

[tex] = - \frac{2}{3} [/tex]

Can someone help me please

Answers

Answer:

31.25

Step-by-step explanation:

Divide 250 by 8=31.25

A regular polygon has 15 sides. Which is a possible angle of rotational symmetry for the figure? 12° 45° 72° 90°

Answers

Answer: 12° can be a possible angle of rotational symmetry

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