Answered: Assuming no safety stock, what is the…

Assuming no safety stock, what is the re-order point (R) given an average daily demand of 65 units, a lead time of 8 days, and 720 units on hand?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 1E: Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of...

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Assuming no safety stock, what is the re-order
point (R) given an average daily demand of 65
units, a lead time of 8 days, and 720 units on
hand?

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Harrowing Company has the following information: Annual demand =3,500 units Order size = 500 units Ordering cost per order =$400 Carryingcosts per unit for one year =$40 Lead time (maximum 20 days)=10days Maximumd use =25 units Work year =250days Required: a.Determine the economic order quantity for Harrowing b. Determine the reorder point. c. What is the safety stock needed to prevent stockouts?
Prove in four (and only four, no more, no less) logical steps that the following expression is TRUE or FALSE : (IMAGE) , where i=1, capital cost; i=2, storage cost; i=3, risk cost.
If sigma is 130 units, and the demand during the lead time is 250 units, calculate thesafety stock and order point for:a. A 50% service level.b. An 85% service level.Use the table in Figure 11.5 as help to calculate your answer.
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Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of seven days, and a desired safety stock of 2,500 lb. a. Determine the order point. b. Determine the number of pounds to be issued from safety stock if the new order is four days late.
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can you help me answer A.
A) Calculate Economic Ordering Quantity ( EOQ ) if cost of carrying 1 unit in inventory = $24 total demand in units over planning period = 60,000 units ordering cost per order = $800 Common Stock A Common Stock B Probability Return Probability Return .30 11% .20 25% .40 15% .30 6% .30 19% .30 14% .20 22%
Use the following demand and supply functions: Demand: Qd = 900 - 60PSupply: Qs = -200 + 50P If the price is currently $11, there is a surplus of 350 units. surplus of 110 units. shortage of 700 units. shortage of 240 units.
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