26. A small copy center uses five 500-sheet boxes of copy paper a week. Experience suggests thatusage can be well approximated by a normal distribution with a mean of five boxes per week anda standard deviation of one-half box per week. Two weeks are required to fill an order for letter-head stationery. Ordering cost is $2, and annual holding cost is 20 cents per box.a. Determine the economic order quantity, assuming a 52-week year.b. If the copy center reorders when the supply on hand is 12 boxes, compute the risk of a stockout.c. If a fixed interval of seven weeks instead of an ROP is used for reordering, what risk does thecopy center incur that it will run out of stationery before this order arrives if it orders 36 boxeswhen the amount on hand is 12 boxes?

Answered: Image /qna-images/answer/08d7370b-97ff-4ec2-be81-ec56fafa3c71.jpg

Answered: a. Determine the economic order…

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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Describe the key principles of the Wilson approach in inventory management.
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INSTRUCTIONS: Make a summary report of each table. Make it in a paragraph format and include learning experience each table. Solutions Applied Specific Task Performed Assist in the counting of supplies provided the previous day. Problems Encountered Distributing supplies to other departments Answering phone calls Accompanied Ma'am There are several Joy, she checked the supplies that are supplies because the missing, and the audit department was computation for conducting a spot the audit does not audit in the property match. custodian office. the official receipt from the supplier. the At first count, we We double check I learned how to learned that the the counting and entertain supplies insufficient. were found out that it was complete. employees who call from office. our Help to check the physical counts and the Assist in the inventory and distribution of supplies throughout various departments. Help in maintaining There is a We checked the and updating the difference in the…
Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A? (use the normal distribution table posted on Canvas and round up to the nearest integer)
can you help me with this, show me how to do on excel plz
Delaney Co. uses 12,000 of an item per year. They are open 300 days per year. The item takes 8 days from the time they place an order until they receive it. They like to maintain a safety stock of 200. What is Delaney's reorder point for this item?
21 Which of the following is an assumption of the basic fixed-order-quantity inventory model? Select one: a. Stock-out costs are high. b. Lead times are averaged. c. Price per unit of product is constant. d. Ordering costs are variable. e. Back-orders are allowed.
A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Co probability distribution with μ = 25 and σ = 5. (a) What is the recommended order quantity? (Round your answer to the nearest integer.) = $23.50 and C = $9. The demand exhibits some variability such that the lead-time demand follows a normal (b) What are the reorder point and safety stock if the store desires at most a 4% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder point safety stock (c) If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)
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As with other products, Fisher-Price faces the decision of how many Weather Teddy units to order for the comingholiday season. Members of the management team suggested order quantities of 15,000, 18,000, 24,000, or28,000 units. The wide range of order quantities suggested indicates considerable disagreement concerning themarket potential. The product management team asks you for an analysis of the stock-out probabilities forvarious order quantities, an estimate of the profit potential, and to help make an order quantity recommendation.Fisher-Price expects to sell Weather Teddy for $24 based on a cost of $16 per unit. If inventory remains afterthe holiday season, Fisher-Price will sell all surplus inventory for $5 per unit. After reviewing the sales historyof similar products, Fisher-Price’s senior sales forecaster predicted an expected demand of 20,000 units with a.95 probability that demand would be between 10,000 units and 30,000 units. Question: One of Fisher-Price’s managers felt…
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5. Why can it be bad business practice to not maintain adequate inventory? A. Results in high inventory carrying costs B. Results in a long average collection period C. Can result in stockouts and lost business D. Can result in a long average payment period E. None of the above 6. Splodnick Corporation sells 40,000 units of nebulous ambiguities every year. It costs them $100 to order more units, regardless of the order size. It costs Splodnick 63 cents per year to carry each unit. Using the Economic Order Quantity model, what should be Splodnick’s optimal number of units per order? Round your answer to the nearest whole number of units. A. 356 B. 3,563 C. 283 D. 178 E. None of the above

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