A company begins a review of ordering policies for its continuous review system by checking the current policies for a sample of SKUS Following are the characteristics of one temDemand (D)=85 units/week (Assume 52 weeks per year)Ordening and setup cost (S) $75/orderHolding cost (H)-$16/und/yearLead time (L) 5 week(s)Standard deviation of weekly demand 22 unitsCycle-service lovel-90 percent>EOQ-207 unitsUsing the above information, develop the best policies for a periodic review system Refer to the standard normal table for z-valuesa. What value of P gives the same approximate number of orders per year as the EOQ? weeks (Enter your response rounded to the nearest whole number)b. To provide a 98 percent cycle-service level, the average safety stock isTo provide a 98 percent cycle-service level, the target inventory level isunts (Enter your response rounded to the nearest whole number)units (Enter your response rounded to the nearest whole number)

*In the given image, some figures are somehow unclear, but still i tried to mention the correct…

Answered: A company begins a review of ordering…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The Northridge Company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a product K is very likely to get one from a competitor if Northridge Company doesn’t have one available immediately. Northridge Company’s current policy to produce the product K is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up the production for product K for the next week and states that he has capacity available to produce 300 at a time next week. The following lists the forecasts and actual customer orders for the next 12 weeks. Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 90 120 110 80 85 95 100 110 90 90 100 110 Customer Orders 105 97 93 72 98 72 53 21…
Conhugeco is deciding between three levels of automation for the work cell that produces a key component. The Amazing Criswell, the company forecaster, believes that there could be three levels of demand for the products produced in this work cell and has developed this table of probable annual maintenance costs for company executives. Low Demand Medium Demand High Demand No Automation 125 85 105 Robotics 110 120 130 CAD/CAM 190 160 50 FMS 140 160 120 What is the best decision if Conhugeco company executives use a minimax regret approach to this decision? a. Robotics b. FMS c. CAD/CAM d. No Automation
What happens to availability when the MTTR (time between failures) approaches zero? Is there a way to convey this circumstance correctly?
Carol Cagle bas a repetitive manufacturing plantproducing trailer bitches in Arlington, Texas. The plant has anaverage inventory tu rnover of only 12 times per year. She hastherefore determined that she will reduce her component lotsizes. She has developed the following data for one component,the safety chain clip:Annual demand = 31,200 unitsDaily demand = 120 unitsDaily production (in 8 hours) = 960 unitsDesired lot size (I hour of production) = 120 unitsHolding cost per unit per year = $12Setup labor cost per hour = $20How many minutes of setup time should she have her plant manageraim for regarding this component?
Internal control problems in the revenue cycle
Steadily increasing or steadily decreasing orders are typical of a _______ pattern of demand. Group of answer choices Cyclic Level or horizontal Seasonal Trend
Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) an example Q Get more help. Annual SKU Unit Value Demand (units) Dollar Usage $ 40000 $360 $ 2300 $12 $ 3280 $ 350 $ 35 $ 19500 11 1 2 Rank the SKUs in descending order on the basis of their annual dollar usage and fill in the table with the ranked SKU's percentage of dollar usage. (Enter your responses rounded to two decimal places.) 3 4 5 6 7 8 $1.00 $0.90 $0.02 $0.01 $4.10 $1.40 $0.35 $0.30 Rank 1 2 3 4 5 6 7 E SKU Code 40,000 400 115,000 1,200 800 250 100 65,000 V Percent of Dollar Usage % % 1% %…
What happens to availability when the MTTR (mean time between failures) decreases to zero? Is there a way to convey this circumstance correctly?
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