LubeCar specializes in fast automobile oil change. The garage buys oil in bulk at 40pesos per liter. A price discount of 3 pesos per liter is available if LubeCar purchasesmore than 500 liters. The garage uses approximately 150 liters per day. Holding cost is2 pesos per liter per day and the cost of placing an order is 50 pesos. There is a 2-daylead time for delivery. Determine the optimal inventory policy.

Answered: more than 500 liters. The garage uses…

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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Need some help with part D please!
Based on available information, lead time demandfor PC jump drives averages 50 units (normally distributed),with a standard deviation of 5 drives. Management wants a97% service level.a) What value of Z should be applied?b) How many drives should be carried as safety stock?c) What is the appropriate reorder point?
If annual demand is 6,125 units, annual holding cost is $5 per unit, and setup cost per order is $50, what is the EOQ lot size?
Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 405 units. Ordering cost is $38; holding cost is $5 per unit per year. a) To minimize the total cost, how many units should be ordered each time an order is placed? EOQ = units (round your response to the nearest whole number). b) If the holding cost per unit was $6.00 instead of $5, what would the optimal order quantity be? New EOQ = units (round your response to the nearest whole number). A
If annual demand is 12,000 units, annual holding cost is $15 per unit, and setup cost per order is $25, what is the EOQ lot size?
Cape Fear Hospital consumed 400 boxes of bandages per week last year. The price of bandages was $80 per box, and the hospital operates 52 weeks per year. The cost of processing an order was $64, and the cost of holding one box throughout a full year was 20% of the value of the material. What is the EOQ? 407 boxes 102 boxes O 408 boxes O 57 boxes
3
please answer within 30 mins.
What is the origin and basic concepts of inventory problems?

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more than 500 liters. The garage uses approximately 150 liters per day. Holding cos 2 pesos per liter per day and the cost of placing an order is 50 pesos. There is a 2- lead time for delivery. Determine the optimal inventory policy.