Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Part 2 Calculation Questions As assistant manager of a soccer specialty store you have been asked to review the inventory costs associated with the store's best selling soccer shoe. The information you have available concerning this shoe follows: Average Demand =18 pairs per week; Standard Deviation of demand = 6 pairs Lead time for ordering shoes= 1 week; Ordering cost $32 per order Cost of a pair = $90; Carrying cost per pair per 10% of cost of per pair year Service level =98%, Z =2.05; The store operates 50 weeks per year. = = (1) If the economic lot size model is applied, what is the optimal order cost (Q) and total cost per year(TC) for the best selling soccer shoe? (2) If the continuous review inventory policy - (Q,R) policy is applied, what is the record level R for the bestselling soccer shoe? (3) If the periodic review inventory policy- bask- stock level policy is applied and the manager checks the stock level every 3 weeks, what is the base-stock level the store should maintain?

Part 2 Calculation Questions As assistant manager of a soccer specialty store you have been asked to review the inventory costs associated with the store's best selling soccer shoe. The information you have available concerning this shoe follows: Average Demand =18 pairs per week; Standard Deviation of demand = 6 pairs Lead time for ordering shoes= 1 week; Ordering cost $32 per order Cost of a pair = $90; Carrying cost per pair per 10% of cost of per pair year Service level =98%, Z =2.05; The store operates 50 weeks per year. = = (1) If the economic lot size model is applied, what is the optimal order cost (Q) and total cost per year(TC) for the best selling soccer shoe? (2) If the continuous review inventory policy - (Q,R) policy is applied, what is the record level R for the bestselling soccer shoe? (3) If the periodic review inventory policy- bask- stock level policy is applied and the manager checks the stock level every 3 weeks, what is the base-stock level the store should maintain?

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question
Part 2 Calculation Questions As assistant manager of a soccer specialty store you have been asked to review the inventory costs associated with the store's best selling soccer shoe. The information you have available concerning this shoe follows: Average Demand =18 pairs per week; Standard Deviation of demand = 6 pairs Lead time for ordering shoes= 1 week; Ordering cost $32 per order Cost of a pair = $90; Carrying cost per pair per year 10% of cost of per pair Service level =98%, Z =2.05; The store operates 50 weeks per year. = (1) If the economic lot size model is applied, what is the optimal order cost (Q) and total cost per year(TC) for the best selling soccer shoe? (2) If the continuous review inventory policy - (Q,R) policy is applied, what is the record level R for the bestselling soccer shoe? (3) If the periodic review inventory policy- bask- stock level policy is applied and the manager checks the stock level every 3 weeks, what is the base-stock level the store should maintain?
Transcribed Image Text:Part 2 Calculation Questions As assistant manager of a soccer specialty store you have been asked to review the inventory costs associated with the store's best selling soccer shoe. The information you have available concerning this shoe follows: Average Demand =18 pairs per week; Standard Deviation of demand = 6 pairs Lead time for ordering shoes= 1 week; Ordering cost $32 per order Cost of a pair = $90; Carrying cost per pair per year 10% of cost of per pair Service level =98%, Z =2.05; The store operates 50 weeks per year. = (1) If the economic lot size model is applied, what is the optimal order cost (Q) and total cost per year(TC) for the best selling soccer shoe? (2) If the continuous review inventory policy - (Q,R) policy is applied, what is the record level R for the bestselling soccer shoe? (3) If the periodic review inventory policy- bask- stock level policy is applied and the manager checks the stock level every 3 weeks, what is the base-stock level the store should maintain?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS