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QUESTION 6 Bob's Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 4,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is 4 per day. There are currently 150 sheets on-hand. How many sheets should you order? Selected Answer: OPM FINAL Q #6.xlsx Remove

QUESTION 6 Bob's Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 4,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is 4 per day. There are currently 150 sheets on-hand. How many sheets should you order? Selected Answer: OPM FINAL Q #6.xlsx Remove

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...
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Question 6

QUESTION 5 Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 100 units per hour. In the month of July, the company operated the production line for a total of 175 hours and produced 16,900 units of output. a. What was its capacity utilization rate for the month? b. Now the production shop will produce a new product and need to order the new part. Demand for an item is 1,000 units per year. Each order placed costs $10; the annual cost to carry items in inventory is $2 each. In what quantities should the item be ordered? Selected Answer: OPM FINAL QUESTION 5.xlsx Attach File Browse Local Files QUESTION 6 Browse Content Collection Attach File Remove Bob's Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 4,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is 4 per day. There are currently 150 sheets on-hand. How many sheets should you order? Selected Answer: OPM FINAL Q #6.xlsx Browse Dropbox Remove
Transcribed Image Text:QUESTION 5 Hoosier Manufacturing operates a production shop that is designed to have the lowest unit production cost at an output rate of 100 units per hour. In the month of July, the company operated the production line for a total of 175 hours and produced 16,900 units of output. a. What was its capacity utilization rate for the month? b. Now the production shop will produce a new product and need to order the new part. Demand for an item is 1,000 units per year. Each order placed costs $10; the annual cost to carry items in inventory is $2 each. In what quantities should the item be ordered? Selected Answer: OPM FINAL QUESTION 5.xlsx Attach File Browse Local Files QUESTION 6 Browse Content Collection Attach File Remove Bob's Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 4,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is 4 per day. There are currently 150 sheets on-hand. How many sheets should you order? Selected Answer: OPM FINAL Q #6.xlsx Browse Dropbox Remove
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