You are trying to figure out how much inventory to keep. Your boss has said that your objective is to have a 95% chance of not running out while waiting for the order to come in. Your lead time is 5 days. The holding cost per unit is $4, the ordering cost is $60, the average demand per day is 40, with standard deviation of 20. Annual demand is 1000 units. What is your reorder point?

Q: Ann Chovies, owner of the Perfect Pasta Pizza Parlour, uses 20 pounds of pepperoni each day in…

A: What Is Inventory? Inventory is the raw materials, components and finished goods a company sells or…

Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…

A: Following are the calculations: EOQ =2*Annual Demand*Ordering  CostHolding Cost  =2*125000*4009.50…

Q: A firm uses a fixed time period model to manage a type of bolts they keep in inventory. The average…

A: Periodic review/fixed period Here inventory is checked at pre fixed review intervals and an order is…

Q: The following information relates to the forthcoming period:- Order costs = $25per order Holding…

A: Under production and operations the main aim of the business is to minimize its costs as much as…

Q: It takes approximately 2 weeks (14 days) for an order ofsteel bolts to arrive once the order has…

A: What is a reorder point and what does it mean? The point at which your inventory must be refilled is…

Q: Abey Kuruvilla, of Parkside Plumbing, uses 1,200 of a certain spare part that costs $25.00 for each…

A: Understanding inventory levels and where they are located in warehouses is the aim of inventory…

Q: You want to have a 97% chance that you do not run out of inventory while you wait for an order to…

A: Given, Daily demand (d) = 19 Standard deviation (sd) = 3 Lead time (LT) = 4 Service level = 0.97. Z…

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: This is a 2-part question scenario based on EOQ and Reorder Point:   You have been selling your…

A: Mean Demand (d) = 44 per dayStandard Deviation of Demand (σd) = 5 daysLead time (LT) = 6…

Q: What is the reorder point

A: Reorder point is the stock level that initiate new order for fill the stock level. Its about the sum…

Q: Inventory holding costs are the costs of storing products until they are purchased or shipped to…

A: Inventory- The raw materials used in production, as well as the products manufactured that are…

Q: You are managing a company that stocks and distributes hardware. Thecompany employs two purchasing…

A: Hence, the number of hammers that need to be ordered by the firm at one time is 290.

Q: Items purchased from a vendor cost $250 each, and the forecast for next year’s demand is 2,000…

A: Given that: D= 2000 Ordering Cost (S) = $5 Holding Cost (H) = $2

Q: 2 to 17. Compute for the inventory-related cost if the entity purchased 500 boxes more and less than…

A: EOQ stands for economic order quantity. It is a method to measure the quantity which should be…

Q: A bookstore manages the inventory based on a continuous review system with the order quantity Q =…

A: Inventory management helps in deciding how much stock should be ordered at what time. Secondly, it…

Q: minimize the combined ordering and holding costs for staples

A: EOQ is a statistical management tool which helps to identify the optimal order size based on holding…

Q: Energyzer , a regional electronics retailer , estimates that sells 13 , 000 4-packs of batteries per…

A: The Economic Order Quantity is determined for the purpose of inventory management so that it will…

Q: Consider a product with a daily demand of 500 units, a setup cost per production run of $100, a…

A: Here, the daily demand is 500 units The annual demand =500×365The annual demand=182500 Annual…

Q: The principal goal of inventory management systems is to balance the costs of ordering, shipping,…

A: Inventory is a term that defines the raw materials, and parts that are used by a company for selling…

Q: Fisk Corporation is trying to improve its inventory control system and has installed an online…

A: To find the Economic Order Quantity (EOQ) and related parameters, we can use the Wilson EOQ model.…

Q: An electronic store uses continuous review policy to manage the inventory of its high selling…

A: Annual demand(D) = 4000*2*52 = 4,16,000 units Unit price = 7000 AED Ordering cost(S) = 80,000 AED…

Q: snip

A:

Q: . The overall objective of inventory management is to achieve satisfactory levels of customer…

A: Concept Introduction Inventory Management can be define as a process where plans are made to…

Q: EOQ

A: D = Annual demand O = Ordering cost A = Annual carrying cost  Economic order quantity (EOQ) =…

Q: Dunstreet's Department Store would like to develop an inventory ordering policy with a 95 percent…

A: To calculate the optimal order quantity for white percale sheets, we need to consider the following…

Q: Items purchased from a vendor cost $250 each, and the forecast for next year’s demand is 2,000…

A: Given Data D = 2000 S = 5 H = 4 P = 250 L = 3