Assignment Model Answer Problem#2 A large bakery buys flour in 25-pound bags. The bakery uses an average of' 4,860 bags a year. reparing an order and re!eiving a ship"en# of flour involves a !os# of $%0 per order. order. Annual !arrying !os#s are $&5 per bag. (A) e#er"ine #he e!ono"i! order (uan#i#y. (B) )ha# is #he average nu"ber of bags on hand* (C) +o "any orders per year ill #here be* (D) o"pu#e #he #o#al !os# of ordering and !arrying flour. (E) f ordering !os#s ere #o in!rease by $% per order, ho "u!h #ha# ould affe!# #he "ini"u" #o#al annual !os#*
ANSWER / 4,860 bagsyr. 1 / $%0 + / $&5 a.
2'1
+
24,8603%0 &5
6 bags
b. 2 / 62 / %8 bags !.
'
d. T-
4,860 bags 6 bags orders
2+
%5 orders
' 1
6 4,860 &53 %03 2 6
e. s sin ing g 1 / $5, $5, / T-
%,50 %,50
2 4,860 3%%3 &5
&.&5& &5 & 4,860 &53 %%3 2 & .&5& &5 &
$2,&00
&.&5&
%,4%5 4% 5.87 %,4%5 4% 5.70
n!rease by $2,8%.&7 9 $2,&00: / $%%.&7
Problem#3
$2,8% .&7
A large la fir" uses an average of 40 bo;es of !opier paper a day. The fir" opera#es 260 days a year. 1#orage and handling !os#s for #he paper are $0 a year per bo;, and i#s !os#s appro;i"a#e $ 60 #o order and re!eive a ship"en# of paper. (A) )ha# order si* (D) The offi!e "anager is !urren#ly using an order si
ANSWER / 40day ; 260 daysyr. / %0,400 pa!kages 1 / $60 + / $0 a.
0
b.
T-
2'1 + + 2
2%0,400360 0
20.76 204 bo;es
' 1
204 %0, 400 03 603 2 204
,060 ,058 .82
$6,%%8 .82
!. es d. T- 200
200 %0,400 03 603 2 200
T200 / ,000 B ,%20 / $6,%20 6,%20 9 6,%%8.82 only $%.%8 higher #han i#h =>, so 200 is a!!ep#able.3
Problem#5 The friendly 1ausage fa!#ory C1C3 !an produ!e ho# dogs a# a ra#e of 5,000 uni#s per day. C1C supplied ho# dogs #o lo!al res#auran# a# a s#eady s#a#e ra#e of 250 per day. The !os# #o prepare e(uip"en# for produ!ing ho# dog is $66. Annual holding !os# is 45 !en#s per ho# dog. The fa!#ory opera#es 00 days a year. Cind a3 The op#i"al run si
/ 250day ; 00 daysyr. / &5,000 ho#dogsyr.
1 / $66 + / $.45ho#dog per yr. a.
0
2 '1 p + p u
2&5,000366 .45
5,000 4,&50
4,8%2 .2& round #o 4,8%2:
b. o / &5,0004,8%2 / %5.57, or abou# %6 runsyr. !.
run leng#hF op / 4,8%25,000 / .76 days, or appro;i"a#ely % day
Problem#6
A !he"i!al fir" produ!es sodiu" bisulpha#e in %00-pound bags. e"and for #his produ!# is 20 #ons per day. The !apa!i#y for produ!ing #he produ!# is 50 #ons per day. 1e#up !os# $%00 and s#orage and handling !os# are $5 per #on a year. The fir" opera#es 200 days a year. Do#e % #on / 2000 pounds3 a3 +o "any bags per run are op#i"al* b3 )ha# ould #he average inven#ory be for #his lo# si
ANSWER p / 50#onday u / 20 #onsday
/ 20 #onsday ; 200 daysyr. / 4,000 #onsyr.
200 daysyr. 1 / $%00 + / $5#on per yr.
0
a. 2'1 p + p u b.
"a;
p u 3
Average is !.
2 4,000 3%00 5
"a;
Eun leng#h /
5%6 .4 0 3 50
07.48
2
2
d. Euns per yearF e.
F
5%6 .4 50
'
50 50 20
5%6.4
5%6.40 #ons %0,28 bag s:
07 .84 #ons appro;. 6,%76 .8 bags :
%54.72 #ons
appro;. ,078 bags:
%0 . days
4,000
&.&5 appro;. 8:
/ 258.2
T /
"a; ' + 1 2
Torig. / $%,547.00 Trev. / $ &&4.50 1avings ould be
$&&4.50
