Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show clearly how to calculate each part a,b,c,d,e,f,g with provided formula as I need to do in excel. Thanks a lot if you could

Please show clearly how to calculate each part a,b,c,d,e,f,g with provided formula as I need to do in excel. Thanks a lot if you could show in excel too.

image text in transcribedimage text in transcribedimage text in transcribed
The Chanikarn Company is the purchasing agent for the Thai Petroleum and Gas (CTPG) Company, which sells industrial valves and uid control devices. One of CTPG's most popular valves is the Asian, which has an annual demand of 4,200 units. Each valve costs $92.5, and the inventory carrying cost is $12. The Chanikarn Company has studied the costs of placing an order for any of the valves that CTPG stocks. Also, they have concluded that the average ordering cost is $28.5 per order. Moreover, it takes about 6 working days for an order to arrive from the supplier. Assuming 256 working days per year. (a) What is the economic order quantity? (3 Marks) (b) What is the average inventory if the economic order quantity is used? (3 Marks) (0) What is the optimal number of orders per year? (2 Marks) (d) What is the optimal number of days between any two orders? (2 Marks) (e) What is the total annual inventory cost? (3 Marks) (1) What is the reorder point? (2 Marks) (g) If The Chanikarn Company has a variety of valves series in the inventory, use ABC Analysis to analyze these items below (5 Marks): (1) Item (2) (3) (4) Unit (5) (6) Percent Class (7) Class Stock Percent Annual Cost Annual of Annual Number of Volume Dollar Dollar Number (Units) Volume Volume of Items Stocked () #valve115 500 $144.10 #valve137 1,200 $2.42 #valve 108 350 $42.56 #valve147 2,000 $1.60 #valve 108 350 $42.56 #valve127 1,550 $18.00 #valve152 600 $15.17 #valve 102 1,000 $92.50 #valve572 250 $1.30 #valve036 100 $8.65 #valve 159 3,500 $4.12

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hospitality Marketing

Authors: David Bowie, Francis Buttle

3rd Edition

1317403495, 9781317403494

More Books

Students also viewed these General Management questions

Question

Describe the roots of positive psychology.

Answered: 1 week ago

Question

The number of people commenting on the statement

Answered: 1 week ago

Question

Peoples understanding of what is being said

Answered: 1 week ago