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A national chain of tyre fitters (tiger wheel and tyres) stocks a popular tyre for which the following information is available. The company operates on 50-weeks a year and normally operates from Monday to Friday only. Ordering Costs per order                       N$175.50 Holding Cost per unit                             3 % of unit cost Cost per tyre                                         N$1 800 Reorder quantity                                   5 000 Lead time                                             12 to 16 days Maximum usage                                    175 tyres per day Minimum usage                                     90 tyres per day Average usage                                      140 tyres per day Estimate the minimum level of inventory

A national chain of tyre fitters (tiger wheel and tyres) stocks a popular tyre for which the following information is available. The company operates on 50-weeks a year and normally operates from Monday to Friday only. Ordering Costs per order                       N$175.50 Holding Cost per unit                             3 % of unit cost Cost per tyre                                         N$1 800 Reorder quantity                                   5 000 Lead time                                             12 to 16 days Maximum usage                                    175 tyres per day Minimum usage                                     90 tyres per day Average usage                                      140 tyres per day Estimate the minimum level of inventory

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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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 national chain of tyre fitters (tiger wheel and tyres) stocks a popular tyre for which the following information is available. The company operates on 50-weeks a year and normally operates from Monday to Friday only.

Ordering Costs per order                       N$175.50

Holding Cost per unit                             3 % of unit cost

Cost per tyre                                         N$1 800

Reorder quantity                                   5 000

Lead time                                             12 to 16 days

Maximum usage                                    175 tyres per day

Minimum usage                                     90 tyres per day

Average usage                                      140 tyres per day

Estimate the minimum level of inventory

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