3:A manufacturer maintains an inventory of needles. Inventory consumption is constant at 1200 needles per day and lead time for newneedles is constant at five days. If the manufacturer wishes to maintain a safety stock of 600 needles, what should its reorder point be?OA. 5000OB. 5400F2OC. 4800OD.7200OE. 6600OF. 6000#3A Moving to another question will save this response.80EF3$4DODOOD F4R%5F5TA6MacBook AirY&7◄◄F7U*8► 11F8(9F9O)0F10<<< Question 28 of 42 > >>(4)F11+ 11F12#2dele

Ans) Formula: Reorder Point = Average Daily usage*Lead Time + Safety stock Average daily usage = Inventory = 1200 Solution: Reorder Point = 1200*5 + 600 = 6000 + 600 = 6600Thus, Correct Option is E. 6600

Answered: A manufacturer maintains an inventory…

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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A manufacturer produces umbrellas. The production rate is 500 per day. The monthly demand for umbrellas is 2100 (and so usage per day is 70). Setup cost is $60 and holding cost is $1 per umbrella per month. What is the economic production quantity? (Use the nearest whole number) OA. 775 OB. 541 OC. 835 OD. 620 OE. 894 OF. 693 O.G.502 OH.899
Daily demand (d) 150 units Mean lead time (LT) 9 days Standard deviation of lead time (σLT) 3 days Service level 97% 1. What is the required safety stock at a 97 percent service level? ______ units 2. What is the reorder point? ______ units
University of Florida football programs areprinted 1 week prior to each home game. Attendance averages90,000 screaming and loyal Gators fans, of whom two-thirdsusually buy the program, following a normal distribution, for$4 each. Unsold programs are sent to a recycling center thatpays only 10 cents per program. The standard deviation is5,000 programs, and the cost to print each program is $1.a) What is the cost of underestimating demand for eachprogram?b) What is the overage cost per program?c) How many programs should be ordered per game?d) What is the stockout risk for this order size?
Which of the following is one of the assumptions of EOQ model? Group of answer choices Annual demand is known and even throughout the year Orders are received partially There are quantity discounts Multiple items are involved Lead time varies
20 Lead time for one of your fastest-moving products is a) What would be an appropriate reorder point? 100 days. Demand during this period averages units per day. units (enter your response as a whole number). b) How does your answer change if demand during lead time doubles? c) How does your answer change if demand during lead time drops in half? units (enter your response as a whole number). units (enter your response as a whole number).
Explore the role and implications of safety stock within the framework of the Wilson approach for effective inventory control.
Which of the following is not a common type of inventory? a) Raw materials b) Work-in-progress c) Finished goods d) Customer complaints
Please explain me in brief about Pros and Cons of Re-Order Point Control and Re-Order Cycle Control Inventory control Systems.

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