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 custorners 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 nght quantity at the right time. She collected the following datar Demand-7 boxes per week Order cost 575/order Item cost $150/box Inventory-holding cost- 10 percent per year Service level91 percent Store open 46 weeks/year Lead-time 4 weeks Std. deviation in weekly demand- 7 Brenda wants to consider setting up a fixed-period inventory systerm for the 28-ounce bottle of Super Algaecide (SA) SKU, AM the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 85 units on-hand. There were no scheduled receipts and 40 units were on backorder. a. What is the review period (7) Do not round intermediate calculations. Round your answer up to the nearest whole number. weeks b. What is stock replenishment level with safety stack (M) De not round intermediate calculations. Round your answer to the nearest whole number. bottles C How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number. orders/year
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 custorners 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 nght quantity at the right time. She collected the following datar Demand-7 boxes per week Order cost 575/order Item cost $150/box Inventory-holding cost- 10 percent per year Service level91 percent Store open 46 weeks/year Lead-time 4 weeks Std. deviation in weekly demand- 7 Brenda wants to consider setting up a fixed-period inventory systerm for the 28-ounce bottle of Super Algaecide (SA) SKU, AM the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 85 units on-hand. There were no scheduled receipts and 40 units were on backorder. a. What is the review period (7) Do not round intermediate calculations. Round your answer up to the nearest whole number. weeks b. What is stock replenishment level with safety stack (M) De not round intermediate calculations. Round your answer to the nearest whole number. bottles C How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number. orders/year
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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Transcribed Image Text: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 datar
Demand - 7 boxes per week
Store open - 48 weeks/year
Order cost - 575/order
Lead-time4 weeks
them cost - $150/box
Std. deviation in weekly demand - 7
Inventory holding cost - 10 percent per year Service level - 91 percent
Brenda wants to consider setting up a fixed-period inventory system for the 28-ounce bottle of Super Algaecide (SA) SKU, AM the beginning of the current week, D. J. Kole,
the materials manager, checked the inventory level and found 85 units on-hand. There were no scheduled receipts and 40 units were on backorder.
a. What is the review period (7) Do not round intermediate calculations. Round your answer up to the nearest whole number.
weeks
b. What is stock replenishment level with safety stack (M)? Do not round intermediate calculations. Round your answer to the nearest whole number.
bottles
C How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number,
orders/year
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