Please answer questions 9 and 10 based on this data.Daily demand for packages of five videotapes at a warehouse store is found to be normally distributed with a mean of 50and a standard deviation of 5. When the store orders more tapes, the orders take four days to arrive. Assume the store isopen 360 days a year.If the store wants the probability of stocking out to be no more than 5%, and demand each day is independent of the daybefore, what should be the safety stock?Please round your answer to two decimals.Safety stock=17Question 104 ptsIf the store wants the probability of stocking out to be no more than 5%, and demand each day is independent of the daybefore, what reorder point should be set?Please round your answer to two decimals.Reorder point=

10. The reorder point should be approximately 217 packages.Explanation:10. The reorder point is the…

Answered: Please answer questions 9 and 10 based…

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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= A small manufacturing facility stocks a single-use filter, part SUF100, for their production process. It costs the manufacturer $1.50 per filter to purchase and $100 per order placed. They use a holding cost of 28% annually. Monthly demand for SUF100 follows a normal distribution with u 280 and σ = = 77. The parts arrive five months after an order is placed. If a stockout occurs, the demand is backlogged, not lost, and costs the production facility $12.80 per part backordered. 1. Find the optimal order quantity and reorder level to minimize average annual cost of holding, setup, and stockout. 2. What is the average annual cost of holding, setup, and stockouts, when the Q,R-policy in part 1 is used?
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
You sell Candy Corn each year. You have averaged 3,343 pounds of candy corn sold each year with a standard deviation of 130. You desire a 55% service level. How many pounds of candy corn do you order this year? Type your answer.....
Anna Litic, a new supply chain manager at High Precision Inc. (HP), decides to checksome data on the supply chains she manages. She discovers that HP’s in-transit inventory of electronic components from its Tacoma, Washington, factory to its Asian distribution center (DC) has increased from two quarters ago. However, the distributionof demand at the Asian DC has not changed over this period of time. Anna knows thatthe Asian DC manager is controlling inventory to achieve a fixed in-stock probabilitytarget, so she is happy to see that indeed the in-stock inventory at the Asian DC has alsonot deviated off the target. Anna wonders what has happened to the Asian DC’s averageinventory. What is she likely to discover regarding the Asian DC’s on-hand inventory? a. On-hand inventory has not changed because the in-stock probability has not changedat the Asian DC.b. On-hand inventory has increased because the lead time from Tacoma, Washington, tothe Asian DC must have increased.c. On-hand…
A distributor of large appliances needs to determine the order quantities and reorderpoints for the various products it carries. The following data refer to a specii c refrigeratorin its product line:Cost to place an orderHolding costCost of refrigeratorAnnual demandStandard deviation of demand during lead timeLead time$10020 percent of product cost per year$500 each500 refrigerators10 refrigerators7 daysConsider an even daily demand and a 365-day year.a. What is the economic order quantity?b. If the distributor wants a 97 percent service probability, what reorder point, R, shouldbe used?
An automotive warehouse stocks a variety of parts that are sold at neighborhood stores. One particular part, a popular brand of oil filter, is purchased by the warehouse for $1.50 each. It is estimated that the cost of order processing and receipt is $100 per order. The company uses an inventory carrying charge based on a 28 percent annual interest rate. The monthly demand for the filter follows a normal distribution with mean 280 and standard deviation 77. Order lead time is assumed to be five months. Assume that if a filter is demanded when the warehouse is out of stock, then the demand is back-ordered, and the cost assessed for each back-ordered demand is $12.80. Determine the following quantities: The optimal values of the order quantity and the reorder level. The average annual cost of holding, setup, and stock-out associated with this item assuming that an optimal policy is used. Evaluate the cost of uncertainty for this process. That is, compare the average annual cost you…
A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics:Demand 1D2 = 2,000 units/yearDemand is normally distributedStandard deviation of weekly demand = 3 unitsOrdering cost = $40/orderAnnual holding cost 1H2 = $5/unitsDesired cycle@service level = 90 percentLead time 1L2 = 4 weeksa. If the company uses a periodic review system, what should P and T be? Round P to the nearest week.b. If the company uses a continuous review system, what should R be?
is selling Christmas trees. She purchases trees for $10 and sells for $25 each. The number of trees she can sell is normally distributed with a mean of 100 and standard deviation of 30. How many trees should purchase?
Rex manufacturing purchases a printed circuit board for use in its automatic, computerized, robotbartender. The manufacturing facility has placed the following monthly demands on purchasedgoods inventory during the past year. Month 1 2 3 4 5 6 7 8 9 10 11 12 Demand 205 193 197 220 202 226 179 197 186 202 179 214 This demand schedule can be assumed to be random, to follow a normal distribution, and to berepresentative of what will occur in the future. Rex estimates that a fixed cost of $300 isincurred each time an order is placed for the boards, and that the inventory holding cost is about20% per year of the value of inventory. Each board has an estimated value of $192 at the pointof storage. The lead time on purchase orders is (1/5) month.Part A: What is the EOQ?Part B: What is the safety stock required to assure the management that the chance of a stock outin a cycle is no more than 1%?Part C: What is the reorder level?
A grocery store starts each day with a stock of 245 bananas in their produce section. Daily demand for bananas is normally distributed with a mean of 200 and a standard deviation of 30. What is the store's safety stock for bananas?
Please help to solve step by step.
A firm orders apparels from a distant country and can order only once for the entire season. This ordering follows the assumption of the newsvendor model. The firm forecasts that their average demand is likely to be 8500 units. The firm believes that the possible variation in demand is normally distributed and the standard deviation is 650 units. If the apparel cost is $3, the selling price is $25 and the scrap value is zero, what is the ideal order quantity for this apparel?

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