The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is consdays. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average.is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place anTime left 1:45:28order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.Find the economic order quantity (EOQ).O a. 1788O b. 346O c. 36Od. 632The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at fivedays. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demandis 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal) It costs $40 to place anorder, and the annual holding cost is 30% of the inventory value. The supplier charges 58,00 per unitWhat are the expected value and standard deviation of demand during lead time?a. 40, 7.6Ⓒb. 200, 16.99OC40, 16.99

As per guidelines solving first question. Annual demand = Daily demand, d X 300 = 40 x 300 = 12000…

Answered: The manager of a local retail store is…

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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The two-bin approach is used to control inventory for a particular low-cost component. Each bin holds 1000 units. The annual usage of the component is 40,000 units. Cost to order the component is around $50. (a) What is the imputed holding cost per unit for this data? (b) If the actual annual holding cost per unit is only 5 cents, what lot size should be ordered? (c) How much more is the current two-bin approach costing the company annually, compared to the economic order quantity?
A hospital orders surgical supplies using a fixed order interval system. Suppose that just prior to ordering, a check of rolls of gauze bandages shows that there are 40 currently on hand. Suppose also that these rolls have a daily usage that is approximately normal with a mean of 9 rolls and a standard deviation of 4 rolls. Lead time is 4 days and the desired service level is 98 percent. The order interval is 12 days. 1. What would have been the desired service level if an order quantity of 142 rolls were placed when the stock on hand is 30 rolls? (Assume: amount on order and backorder is zero). * 2. How many units would be the safety stock? *
Chicago's Hard Rock Hotel distributes a mean of 900 bath towels per day to guests at the pool and in their rooms. This demand is normally distributed with a standard deviation of 100 towels per day, based on occupancy. The laundry firm that has the linen contract requires a 2-day lead time. The hotel expects a 95% service level to satisfy high guest expectations. Refer to the standard normal table for z-values. a) What is the reorder point? b) What is the safety stock? towels (round your response to the nearest whole number). towels (round your response to the nearest whole number). Z 0.38 0.50 0.67 0.84 1.04 1.28 1.41 1.56 1.65 1.75 2.06 2.33 Pr(Z) 65 69 75 80 85 90 92 94 95 96 98 99
Please do not give solution in image format thanku
Originally I got 96, but I don't believe that is right. Please help! tysm :)
Gyona purchases meat from the local supermarket at $5 per kilo and sell it at $9 per kilo. any unsold meat is sold to the Chinese restaurant near by at $2 per kilo. Gyona is sure that the demand follows a normal distribution with a mean of 100 kilograms and a standard deviation of 15 kilograms. - How many kilograms should she order each day?
1- The number of orders in the inventory system (called A) is total demand (called D) divided D by order size per replenishment (called S) or A =". D follows a normal distribution with a mean of 100,000 and standard deviation of 5000. While S is a continuous uniform distribution between 20,000 and 30,000. Generate 500 A random number and find the average.
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HairGlow uses a chemical in the production of one of its hair products at a rate of 1,000 litres per year. The cost of placing an order and of receiving the chemical once it arrives in the warehouse is Ksh 30 and Ksh 70 respectively. The chemical is purchased at Ksh 20 per litre. Holding costs per year for a litre of the chemical is considered to be 15 percent of its cost. Find the optimal order size
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