What is the reorder point? What would be the effect on the ROP if lead time were five weeks instead of two? What other factors might impact your decision on when to reorder parts?
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Black Instrument Company replenishes highly specialized replacement (service) parts based on statistical reorder point. One part is a 40-mm thumbscrew. Relevant data for the thumbscrew are:
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Planned stock out frequency= Six per year.
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Planned lead time = 2 weeks
Standard deviation of demand = 20 (per week)
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What is the reorder point?
- What would be the effect on the ROP if lead time were five weeks instead of two?
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What other factors might impact your decision on when to reorder parts?
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- The following particulars were collected for the year 2015 from Need LLCMonthly demand -2,000 unitsCost of placing an order RO 225.Annual carrying cost per unit 8%Purchase price of input unit RO 350Minimum usage 30 units per weekMaximum usage 50 units per weekRe-order period 6 to 8 weeks.For emergency purchase 4 weeks Required:(a) Re-order quantity(b) Re-order level(c) Minimum level(d) Maximum level(e) Average Stock Level(f) Danger levelFisk Corporation is trying to improve its inventory control system and has installed an online system at its retail stores. Fisk anticipates sales of 58,800 units per year, an ordering cost of $4 per order, and carrying costs of $1.50 per unit. In the second year, Fisk Corporation finds that it can reduce ordering costs to $1 per order, but carrying costs will stay the same at $1.50 per unit. a-1. What is the economic ordering quantity for the second year? Economic ordering quantity (EOQ) a-2. How many orders will be placed during the second year? Number of orders a-3. What will the average inventory be for the second year? Average inventory Total costs units units a-4. What is the total cost of ordering and carrying inventory for second year? LAUniversity of Florida football programs are printed 1 week prior to each home game. Attendance averages 90,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $5 each. Unsold programs are sent to a recycling center that pays only 10 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is $2. Refer to the standard normal table for z-values. Part 2 a) What is the cost of underestimating demand for each program? Cs=$________ (round your response to two decimal places). Part 3 b) What is the overage cost per program? Co=$_______ (round your response to two decimal places). Part 4 c) How many programs should be ordered per game? ________ programs should be ordered per game (round your response to the nearest whole number). Part 5 d) What is the stockout risk for this order size? Stockout risk=________ (round your response to four decimal places).
- 1 Annual Demand (D) = 168,000 cases Daily Demand (d) = 380 cases COGS (C) = {c} cases Sd (Standard Deviation of Daily Demand) = 11 cases Stotal =550 cases Logistics Service Level = 93.32 % Lead Time =5 days What is the Safety Stock level at Logistics Service Level of the Golden Best ? What is the full ROP of the Golden Best at the Logistics Service Level ?During the last 5 weeks, demands for a certain SKU at a retailer were 7 units (5 weeks ago), 4 units, 4 units, 4 units, and 5 units (last week). The retailer uses a period review model with order-up-to level 71 units, a review period of 2 weeks, and the lead time is 11 weeks. It is time to order. How much should the retailer order?Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. d) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (99% service level)? e) If the carrying cost per year is $0.50/unit/year - what is the additional cost associate with the 99% service level compared to 95% service level (i.e. cost of safety stock at 99% level - cost of safety stock at 95% service level)? solve on excel
- Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. d) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (99% service level)? e) If the carrying cost per year is $0.50/unit/year - what is the additional cost associate with the 99% service level compared to 95% service level (i.e. cost of safety stock at 99% level - cost of safety stock at 95% service level)?Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. a) How much safety stock should be used for a 95% service level? b) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (95% service level)? c) How much safety stock should be used for a 99% service level? solve using excelA regional warehouse orders items once a week from a central warehouse. The truck arrives 3 days after the order is placed. The warehouse operates 5 days a week. For a particular brand and size of chicken soup, the demand is fairly steady at 20 cases per day. Safety stock is set at 2 days’ supply. What is the target level? If the quantity on hand is 90 cases, how many should be ordered
- Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 70 (and was normally distributed). Furthermore, the standard deviation for BX-5 was 6. Ms. Flynn would like to maintain a 90% service level. Refer to the standard normal table for z-values. a) What safety stock level do you recommend for BX-5? Safety Stock=_____ units b) What is the appropriate reorder point? Reorder point=____units 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 99Barbara Flynn's company has compiled the following 12.5 ata on a small set of products: ITEM A B C D E ANNUAL DEMAND ITEM NUMBER E102 D23 D27 R02 R19 $107 $123 U11 U23 V75 100 75 50 200 150 Perform an ABC analysis on her data. PX 12.6 Lynn Fish opened a new beauty-products retail store. There are numerous items in inventory, and Lynn knows that there are costs associated with inventory. However, because her time is limited, she cannot carefully evaluate the inventory policy for all products. Lynn wants to classify the items according to dol- lars invested in them. The following table provides information about the 10 items that she carries: UNIT COST $300 100 50 100 65 UNIT COST $4 $16 $8 $2 $8 $12 $1 $7 $1 $14 DEMAND (UNITS) 800 2,400 700 1,000 200 500 1,200 800 Use ABC analysis to classify these items into categories A, B, and C. PX 1,500 2,500 Problems 12.7-12.40 relate to Inventory Models for Independent Demand • 12.7 William Beville's computer training school, in Richmond, stocks…Please do not give solution in image formate thanku. Weekly demand for HP printers at a Sam's Club store is normally distributed, with a mean of250 and a standard deviation of 150. The store manager continuously monitors inventory andcurrently orders 1,000 printers each time the inventory drops to 600 printers. HP currentlytakes two weeks to fill an order. How much safety inventory does the store carry? What CSLdoes Sam's Club achieve as a result of this policy? What fill rate does the store achieve?Ex:. Return to the Sam's Club store in . Assume that the supply lead time from HP isnormally distributed, with a mean of 2 weeks and a standard deviation of 1.5 weeks. Howmuch safety inventory should Sam's Club carry if it wants to provide a CSL of 95 percent?