Use the data below to answer the question below.Average daily demand325 cases per dayStandard deviation of daily demand95 cases per day2 daysAverage Lead TimeInventory holding costPurchase PriceOrder CostStockout CostDesired Service Level20% of the item's value per year$50 per case$10 per order$35 per case80%Assume the company operates 365days per yearYou look back at historical data and find that lead time is not constant but is variable with anaverage of 2 days. What should the reorder point be set at to meet the desired service level ifthe standard deviation of lead time was found to be 0.5 days and the z-score for a servicelevel of 80% is 0.84?

Given: Average daily demand (d) = 325 cases per day ,Standard deviation of daily demand (d) = 95…

Answered: Use the data below to answer the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A bottling plant i lls 2,400 bottles every two hours. The lead time is 40 minutes and a container accommodates 120 bottles. The safety stock is 10 percent of expected demand. How many kanban cards are needed?
It is the sum of all costs that are incurred periodically and continuously in order that the project in which an investment has been made may be operated, produce a commodity or service and distribute and sell that commodity or service. Salvage cost Profit Operating cost Fixed cost
Answer All parts show steps
SAUCE uses 300,000 units of part X a year. Average purchase lead time is 20 working days while maximum is 27 working days. The firm's annual operations cover 240 days allowing for shutdowns for plant maintenance, holidays and Sundays. The firm wants to keep safety stock to guard against stock outs. What is the safety stock in units?
The elect co needs Ghc185,000 a week to pay bills. The standard deviation of the weekly disbursement is Ghc17,600. The firm has established lower cash balance limit of Ghv 75,000. The applicable interest rate is 5.5% and the fixed unit of transferring funds is Ghc47. Based on the BAT model. What is the optimal initial cash balance?
Background:New Pumper system equipment is under consideration by a gulf coast chemical processing plant. One crucial pump moves highly corrosive liquids from specially lined tanks on intercoastal barges into storage and preliminary refining facilities dockside. Beacuse of the variable quality of the raw chemical and the igh pressures imposed on the pump chassis and impellers, a close log is maintained on the number of hours per year that the pump operates safety records and pump componenet deterioration are considered critical control points for this system. As currently planned, rebuild and M&O cost estimates are increased accordingly when cummulative operating time reaches the 6000-hour mark. Information:- First cost: $800,000- Rebuild Cost: $150,000 whenever 6000 cumulative hours are logged. Each rework will cost 20% more than the previous one. A maximum of three rebuilds are allowed.- M&O Costs: $25,000 for each year 1 through 4 $40,000 per year starting the year after the…
Help with this problem
A Company manufactures and sells one product. The product has the following cost and revenue data: Selling price Per Unit (AED) 70 Variable cost Per Unit (AED) 30 Total fixed expenses per month are as follows: Expenses types AED Advertising 400,702 Rent 100,000 Heating 100,000 The company produced and sold 10,000 units during the month and had no beginning or ending inventories. a. What is the break-even value in Dirhams?
Based on the past data, forecast demand for the next three years for a tyre company.
Using the accompanying log-log graph, answer the following questions: 500 400 300 200 Actual Optimum 100 80 60 40 20 10 10 50 100 150 200 Total units produced Labor-hours per unit
Question 1: Your company seeks to take over Good Deal Company. Your company’s offer for Good Deal is $5,000,000 in cash upon signing the agreement followed by 10 annual payments of $200,000 starting one year later. The time value of money is 10%. a.) Find the present worth of your company’s offer and b.) perform a sensitivity analysis i.e. find how sensitive the value of the present worth is to changes in the initial cash upon signing, annual payment amount, number of payments and rate of return. (Hint: change one of the variables in PW formula to see how it impacts the PW. You can draw a spider plot if you’d like, but it’s not required).

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS