Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. The 28-ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data: Demand = 10 boxes per week Store open 48 weeks/year Order cost = $40/order Lead-time = 4 weeks Item cost = $80/box Std. deviation in weekly demand = 6 Inventory holding cost = 15% per year Service level = 90% Brenda wants to consider setting up a fixed-period inventory system for the 28-ounce bottle of Super Algaecide (SA) SKU. At the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 55 units on-hand. There were no scheduled receipts, and 25 units were on backorder. a. What is the review period (T) rounded up to a whole number? b. What is stock replenishment level with safety stock (M)? c. How many units should be ordered? please solve manually without excel!
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming
but she often stocks out of key items customers want. The 28-ounce bottle of Super Algaecide
(SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and
she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom
has time to review store inventory status and order the right quantity at the right time. She
collected the following data:
Demand = 10 boxes per week
Store open 48 weeks/year
Order cost = $40/order
Lead-time = 4 weeks
Item cost = $80/box
Std. deviation in weekly demand = 6
Inventory holding cost = 15% per year
Service level = 90%
Super Algaecide (SA) SKU. At the beginning of the current week, D. J. Kole, the materials
manager, checked the inventory level and found 55 units on-hand. There were no
receipts, and 25 units were on backorder.
a. What is the review period (T) rounded up to a whole number?
b. What is stock replenishment level with safety stock (M)?
c. How many units should be ordered?
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