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CS 102 Chapter 13.

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CS 102 Chapter 13 Problem 13-9 The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 280 per day. The cos ... t to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 292 days a year. a. Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number.) b. Find the number of runs per year. (Round your answer to the nearest whole number.) c. Find the length (in days) of a run. (Round your answer to the nearest whole number.) Problem 13-13 A mail-order house uses 16,060 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) b. Determine the number of orders per year. (Round your answer to 2 decimal places.) Problem 13-17 A manager just received a new price list from a supplier. It will now cost $1.00 a box for order quantities of 801 or more boxes, $1.10 a box for 200 to 800 boxes, and $1.20 a box for smaller quantities. Ordering cost is $80 per order and carrying costs are $10 per box a year. The firm uses 3,600 boxes a year. The manager has suggested a “round number” order size of 800 boxes. The manager’s rationale is that with a U-shaped cost curve that is fairly flat at its minimum, the difference in total annual cost between 800 and 801 units would be small anyway. What order size would you recommend? (Round intermediate calculations to 2 decimal places and final answer to the nearest whole number.) Problem 13-18 A newspaper publisher uses roughly 860 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead time is six workdays. What is the appropriate reorder point quantity, given that the company desires a service level of 95 percent, if that stockout risk for various levels of safety stock is as follows: 1,500 feet, .10; 1,900 feet, .05; 2,100 feet, .02; and 2,400 feet, .01? Problem 13-31 A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .98. The order interval is 12 days, and lead time is 2 days. Average demand for one item is 68 units per day, and the standard deviation of demand is 7 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the following table. Use Table. Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number) [Show More]

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