Imagine It manufactures 3D printers and purchases one of the components used in the printers from a supplier in the U. S. Imagine it uses 4,000 of these components per year at a cost of $160 each.
The components are used evenly in the production process throughout a 360-day production year. The company estimates that it
costs $20 to place a single purchase order and about $100 to carry each component in inventory for a year since it must be stored in a
climate-controlled unit.
Delivery from the supplier generally takes two days, but it can take as many as six days. The days of delivery time and the percentage
of their occurrence are shown in the following tabulation:
Skipped
eBook
Delivery Time
(Days)
2
3
4
5
Print
Percentage
of Occurrence
75
10
5
5
5
References
100
Required:
1. Compute the EOQ.
EO
component
2. Assume that the company is willina to assume a 15% risk of being out of stock. What is the safety stock? The reorder point?

Used cars usually have options: higher depreciation rate than new cars lower financing costs than new cars lower insurance premiums than new cars lower maintenance costs than new cars

Blank is the internal operation that arranges information resources to support business performance and outcomes

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.