Answered: Weekly Average Demand 190 Standard…

Weekly Average Demand 190 Standard deviation of (weekly) demand 20 Setup cost ($) 1200 Lead time (in weeks) 2 Procurement cost ($) 350

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...

See similar textbooks

Related questions

Q: Inventory is the raw materials, work-in-process products and finished goods from the portion of a…

A: Effectiveness of perpetual inventory for the food service organization Controlling stock levels is…

Q: What does the ABC analysis entail! What is the underlying premise? What are the three criteria for…

A: The premise of ABC analysis: ABC analysisis a methodology that helps in classifying the inventory…

Q: your company is facing the situation in which the demand is stochastic but the lead time is known…

A: Inventory management is a wide concept under operations management. By just reading this term, it…

Q: What are the advantages and disadvantages of "just-in-time Inventory" for a company?

A: Just-in-time or JIT inventory system is a popular management strategy that is used to minimize…

Q: Use the ABC method of classifying inventory control over the items in the following inventory list.…

A: ABC classification is a type of inventory management technique in which items are grouped in A, B,…

Q: Assume that the sales representative just walked in the door and there are currently 450 pounds of…

A: Sure, let's break down the process step by step:1. Calculating Reorder Point: - We start by…

Q: Which of the following is not required when using the retail inventory method? a. all inventory…

A: Below is the solution-

Q: Variety Manufacturer purchases a component from a Asian supplier. The demand for that component is…

A: Given data, D Annual Demand 17500 H Holding Cost 2.8 S Ordering cost 30

Q: What is the formula for computing the Ordering cost for the current ordered quantity? GIve examples

A: Find the formula for ordering cost and Ordered quantity:

Q: at factors need to be considered while determining a policy on the level of inventory? Provide a…

A: Managing inventory is a complex process that requires careful consideration. Be mindful of both…

Q: Demand is variable and the average demand is equal to 30 units per day, with a lead time standard…

A: Average daily demand (d) = 30 units Standard deviation of daily demand (d) = 5 units Lead time (L) =…

Q: a) What was its weeks of supply last year? Inventory Inventory Sales per Week Cost of Sales/52 Weeks…

A: Inventory management is a crucial aspect of every organization dealing with products. Any…

Q: What is the reorder point (R) for a product whose weekly usage is 546 and whose lead time (L) is…

A: An exact level at which your stock has to be restocked is known as a reorder point (ROP). To put it…

Q: Question 1 UMU has demand for 1400 water pumps each year. The cost of a water pump to UMU is $400.…

A: Given data Annual demand of water pump (D) = 1400 units Cost of a water pump = $400 Inventory…

Q: I am planning a Holiday Ornament to commemorate the christmas spirit. Forcasted demand for ornaments…

Q: What is reorder point and provide an example of it.

A: A reorder point is the precise level at which your stock must be replenished. In other words, it…

Q: When priced at $10, Jasmine sells five packages of her home-made Mediterranean flat-bread per day.…

A: In the given excerpt and multiple choice question we are provided with a scenarion wherein Jasmine…

Q: Please give fast answer. And give typed answer. I wil give positive rating. Economic Production…

A: Given data: Annual demand(D)= 50,000 units Production per day(P) =600 units Holding cost (H)= $1.00…

Q: Using the four types of inventory, provide a practical example and explain how Hard Rock Cafe…

A: Small introduction about inventory system:- An inventory is a collection of things utilised by a…

Q: The grocery store has bulk pecans on sale, which is great since you're planning on making 8 pecan…

A: Buying in bulk can be a great way to save money when cooking or baking for a large event, such as a…

Q: Knowing how to use the ABC analysis, make up a list of 10 items in a stores inventory, then decide…

A: Here, First I would explain the term ABC analysis in Inventory management, and then, I would create…

Q: How do i Do this question? Determine the specific planning objectives and measures Nordstrom could…

A: Inventory management is the aspect of production management of an organization including storing,…

Q: Your widget factory requires GWium for polishing. GWium is expensive but worth it and a little goes…

A: Given Information: Each widget requires 0.1 ounces of GWium to produce Supply contract: 10,000…

Q: What are the challenges of inventory management in any company? And how a company can overcome it.

A: Inventory management refers to keeping the stock of raw materials, work in process and finished…

Q: Conduct a comprehensive comparative analysis between the Wilson approach and the ABC analysis method…

A: ABC analysis rferrs to an inventory management system aimining to determine the values of inventory…

Q: rior to accepting a customer’s order, a company should verify the amount of inventory on hand. Which…

A: Inventory management is one of the most important areas of an organization that needs to be handled…

Q: Describe and illustrate the inventory turnover and the days' sales in inventory in analyzing the…

A: Inventory turnover is a monetary proportion showing how frequently an organization has sold and…

Q: The total stockout cost = $ enter your response here. (Enter your response as a whole number.)

A: Given: Opening inventory = 200 Stock-out cost of lost sales/unit = $100 Inventory holding cost is…

Q: You have electronics store, and you are planning to buy headphones from china. The supplier in china…

A: Economic order quantity is the optimal order quantity which minimizes the overall ordering and…

Q: Be specific in your suggestions for reducing inventory and how to implement them.

A: In retail environment, reducing the level of invenntories is very crucial for increasing the…

Q: The relationship between price and quantity supplied is typically O direct O inverse

A: Quantity is the total amount of goods which either being demand by the customer or supplied by the…

Q: out on pepperoni, Assume that the sales representative just walked in the door and there are…

A: Given data:

Q: Discuss the different kinds of costs in carrying inventory and what role the inventory turnover…

A: Inventory management is a very important concept in every organization because it is helpful in…

Q: Describe what is the cost of running in the inventory system?

A: The cost is involved in running store systems such as salary, maintenance and space cost. This is…

Q: Rocky Mountain Tire Center sells 14,000 go-cart tires per year. The ordering cost for each order is…

A: The economic order quantity is about the sufficient or right quantity of input or material required…

Q: Discuss with examples the two methods of inventory control. Which method do you think is better for…

A: The significant creation arranged strategies and methods of stock control for overseeing inventories…

Q: Use the information below for the following questions: Knights Corporation also needs to determine…

A: Continuous review- fixed quantity//EOQ.Here the inventory is checked continuously (usually using…

Q: What factors should a company consider when deciding whether to adopt the Wilson approach for its…

A: The Wilson approach to supply chain management is a strategic method that emphasizes alignment with…

Q: Delaney Co. uses 12,000 of an item per year. They are open 300 days per year. The item takes 8 days…

A: Given - Annual usage = 12,000 items Lead time = 8 days Safety stock = 200 items Working days = 300…

Question

You are given the demand and inventory related information about a grocery store’s product in the table. The store is open for 49 weeks in a year. What is the reorder point if it wants to achieve a service level of 87%?

Weekly Average Demand
190
Standard deviation of (weekly) demand 20
Setup cost ($)
1200
Lead time (in weeks)
2
350
6
Procurement cost ($)
Holding cost /unit/week ($)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Given data and formulas to be used

VIEW

Step 3 Solution a

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Use ABC analysis to identify the goods that need the most focus and inventory management.
What are the 3 major inventory management techniques? Select one company and make on that company data
Use the inventory table and the gross profit inventory method to estimate the ending inventory and cost of goods sold if a 40% gross profit is realized on sales and net sales are $115,990. Date of purchase Units Cost per Total Retail price Total retail purchased unit cost per unit value Beginning inventory 41 $830 $34,030 $985 $40,385 February 5 20 $1,750 $35,000 $2,115 $42,300 February 19 15 $975 $14,625 $1,996 $29,940 March 3 28 $470 $13,160 $610 $17,080 Goods available for sale 104 $129,705 Units sold 81 Ending inventory 23 The estimated cost of goods sold is $
DISCUSS your thoughts on how poor inventory management affects the end customer of a product, especially as it relates to the cost of the product.
What is inventory management, types of inventory and cost associated with inventory?? Please give in text reference if possible.??
Need help! A-1 is incorrect.
Please Show EVERY Working VERY Clearly! Calculate the Economic Order Quantity, Total Annual Cost, Reorder Point, and ADDITIONAL Annual Cost (using a GRAPH) if the Procurement Manager increase the order quantity by 25% from the above EOQ.
please answer within 30 minutes.
Look at the question below
With respect to inventory management, is it better to have an “overstock” than a “stockout”? Why? Why not?
your company is facing the situation in which the demand is stochastic but the lead time is known with certainty. Your company has recently implemented a periodic review policy in which your inventory is reviewed every 30 days. The demand is normally distributed with a mean of 600 items annually. The lead time is 25 days, and the annual standard deviation is 100 units. Inventory shows 20 parts in stock. Your company has a policy of 90% service level type I. Also, ordering cost in $20 and holding cost is also $20 per item per year. a) find the order quantity for the next period b) how would your answer change if service level is defined as the expected number of parts available from stock.