Problem 1:Jill's Job Shop buys the following Part (X-123) for use in its productionsystem. The parts are needed throughout the entire 52-week year.Data for the part are as follows:ITEMX-123Annual demand10,000Holding cost per unit per year$4Order cost$35Lead time2 weeksSafety stock150 unitsItem cost$10.00Use the Fixed-Order Quantity Model to find the following:a) Compute the optimum order quantity (Q).b) What is the reorder point (R) for the item?c) Find the Total Annual Cost (TC) for the item.

Given, Annual Demand = 10,000 Holding Cost = $4 Ordering Cost = $35 Item Cost = $10 Lead time = 2…

Answered: Problem 1: Jill's Job Shop buys the…

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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Sh29
Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every two weeks. Data for both products are as follows: ITEM TEGDIW WIDGET Annual demand 7,000 10,000 Holding cost (% of item cost) 30 % 30 % Setup or order cost $ 190.00 $ 10.00 Lead time 7 weeks 2 week Safety stock 45 units 9 units Item cost $ 5 $ 6 a. What is the reorder quantity and reorder point for Tegdiws? (Round your answers to the nearest whole number.) b. What is the inventory control system for Widgets? (Round your answer to the nearest whole number.) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer…

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