You are the owner of Hotspices.com, an online retailer of hip, exotic, and hard-to-find spices. Consider your inventory of saffron,a spice (generally) worth more by weight than gold. You order saffron from an overseas supplier with a shipping lead time of fourweeks and you order weekly. Average weekly demand is normally distributed with a mean of 60 ounces and a standarddeviation of 20 ounces. What is its expected on-order inventory? (round up to the nearest integer)

Answered: Image /qna-images/answer/913e8a44-d051-461e-893e-e713cf4d633c.jpg

Answered: You are the owner of Hotspices.com, an…

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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A company has an average demand of 30 units per day. The supplier's lead time averages 7 days. Assume that the combined standard deviation of demand over the lead time has been calculated and is equal to 20 units. One unit costs $10 and the inventory carrying cost is 25 percent. What is the reorder point for the company if it decides on a 99 percent service level?
Demand during lead time for one brand of TV is normallydistributed with a mean of 36 TVs and a standard deviationof 15 TYs. What safety stock should be carried for DennisYu's Appliance Outlet to provide a 90% service level? What is theappropriate reorder point?
Charlie’s Pizza orders all of it pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every seven weeks to take orders. Because the orders are shipped directly from Ital, they take six weeks to arrive. Charlies Pizza uses an average of 250 pounds of pepperoni each week, with a standard deviation of 18 pounds. Charlie prides itself on offering only the best –quality ingredients and a high level of service, so it wants to ensure a 95 percent probability of not stocking out on pepperoni. Assume that the sales representative just walked in the door and there are currently 470 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order? (Use the excels NORMSINV( ) function to find the critical value for the given a-level, (Round you z-value to 2 decimal places and final answer t
Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives an 80% discount for its bread at the end of the day. Demand for the bread is normally distributed with a mean of 300 and a standard deviation of 30. What order quantity maximizes expected profit for Bakery A? (use the normal distribution table posted on Canvas and round up to the nearest integer)
Please do not give solution in image formate thanku. A semiconductor manufacturer purchases enormous amounts specialty gases to be used in its manufacturing processes. Its order quantity for argon is 1,400 cylinders, and it places many orders during any given year. This manufacturer holds no safety stock because the supplier is very close and demand for this gas is flat. Over a year's time (in the long run), what would be the average inventory level for this gas?
You are in the process of deciding the optimal order quantity of shampoo packs for a hotel. The supplier charges you $47 per order and your stockroom costs approximately $0.69 per shampoo pack per year to store the product. Based on prior research, you were able to determine that the hotel goes through approximately 94 shampoo packs per day. They hold 0 safety stock. The supplier is willing to give the following quantity discounts for the product. Using the order quantity that will minimize total cost, what is the total annual cost? Quantity 1 - 1499 $2.25 $2.10 $2.05 $2.03 Note: Round your answer to 2 decimal places. Do NOT include $ sign or a comma. For example, answer like 50246 and NOT $50,246 Answer: 1500 - 3999 4000 - 7999 8000+ Price Check
The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 50 cars per month. The cars cost $70 each, and ordering costs are approximately $15 per order, regardless of the order size. The annual holding cost rate is 20%. (a) Determine the economic order quantity and total annual cost (in $) under the assumption that no backorders are permitted. (Round your answers to two decimal places) Q-3354 TC- $ 500 00 X (b) Using a $45 per unit per-year backorder cost, determine the minimum cost inventory policy and total annual cost (in $) for the model racing cars (Round your answers to two decimal places) Q-1024 x x TC-$400.93 (c) What is the maximum number of days a customer would have to wait for a backorder under the policy in part (b)? Assume that the Hobby Shop is open for business 300 days per year. (Round y to two decimal places) 5.12 x days (d) Would you recommend a no-backorder or a backorder inventory policy for…
solve for C Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
3
3. Skinner’s Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $6 per pound. At the end of each business day, any remaining bluefish is sold to a producer of cat food for $3 per pound. Daily demand can be approximated by a normal distribution with a mean of 64 pounds and a standard deviation of 11 pounds. What is the optimal order quantity (stocking level)? Round your answer to 2 decimal places. Answer:_______
I run Coca Cola, and I experience known and constant demand for Coke syrup. I use 10,000 liters of syrup annually. The cost of ordering is $100, and the annual cost of holding a liter of syrup is $4. What is the inventory cost (setup cost + ordering cost) of ordering the economic ordering quantity (EOQ)? Round to the nearest dollar, without the dollar sign. For example, if your answer is $2443.3433, enter 2443.
Polymorph Promotions finds that demand for an item is Normally distributed with a mean of 2,000 units a year and a standard deviation of 400 units. Unit cost is $100, reorder cost is $200, holding cost is 20% of value a year and lead time is fixed at 3 weeks. Compute the (s,Q) ordering policy that gives a 95% service level and the annual cost of the safety stock.

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