Brynn is the owner of a spa store that operates 50 weeks per year. Dazzle Shampoo is a high margin stock-keeping unit (SKU), but the product goes out of stock frequently. She decides to use a fixed-quantity system (FQS) and orders boxes of Dazzle Shampoo containing 10 bottles per box from a vendor 160 miles away. She collects the following data with respect to the sales of Dazzle Shampoo. Demand 10 boxes per week Order Cost $40 per order Item Cost $80 per box per year Inventory-Holding Cost 15 percent per year Lead Time 3 weeks Standard Deviation in Weekly Demand 6 Service Level 96 percent Using the given data, it can be concluded that the economic order quantity (EOQ) of the Dazzle Shampoo boxes is a. more than 25 but less than or equal to 35 boxes. b. less than 25 boxes. c. more than 35 but less than or equal to 45 boxes. d. more than 55 boxes.
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.
| Demand | 10 boxes per week |
| Order Cost | $40 per order |
| Item Cost | $80 per box per year |
| Inventory-Holding Cost | 15 percent per year |
| Lead Time | 3 weeks |
| Standard Deviation in Weekly Demand | 6 |
| Service Level | 96 percent |
Using the given data, it can be concluded that the economic order quantity (EOQ) of the Dazzle Shampoo boxes is
| a. |
more than 25 but less than or equal to 35 boxes. |
|
| b. |
less than 25 boxes. |
|
| c. |
more than 35 but less than or equal to 45 boxes. |
|
| d. |
more than 55 boxes. |
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