Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
9th Edition
ISBN: 9781119371618
Author: Roberta S. Russell
Publisher: Wiley (WileyPLUS Products)
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Chapter 13, Problem 43P
Food Place Market stocks frozen pizzas in a refrigerated display ease. The average daily demand for the pizzas is
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A store has collected the following information on one of its products:Demand = 4,500 units/year Standard deviation of weekly demand = 12 units Ordering costs = $40/order Holding costs = $3/unit/year Cycle-service level = 90% (z for 90% = 1.28) Lead-time = 2 weeks Number of weeks per year = 52 weeks a.
If a firm uses the continuous review system to control the inventory, what would be the order quantity and reorder point?
The Corner Drug Store fills prescriptions for a popular children’s antibiotic, amoxicillin. The daily demand for amoxicillin is normally distributed, with a mean of 200 ounces and a standard deviation of 80 ounces. The vendor for the pharmaceutical firm that supplies the drug calls the drugstore pharmacist every 30 days to check the inventory of amoxicillin. During a call, the druggist indicated that the store had 60 ounces of the antibiotic in stock. The lead time to receive an order is 4 days. Determine the order size that will enable the drugstore to maintain a 95% service level.
The Fast Service Food Mart stocks frozen pizzas in a refrigerated display case. The average daily demand for the pizzas is normally distributed, with a mean of 8 pizzas and a standard deviation of 2.5 pizzas. A vendor for a packaged food distributor checks the market’s inventory of frozen foods every 10 days, and during a particular visit, there were no pizzas in stock. The lead time to receive an order is 3 days. Determine the order size for this order period that will result in a 99% service level. During the vendor’s following visit, there were 5 frozen pizzas in stock. What is the order size for the next order period?
Chapter 13 Solutions
Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
Ch. 13.S - Prob. 1QCh. 13.S - How are steady-state results achieved in a...Ch. 13.S - Prob. 3QCh. 13 - Describe the difference between independent and...Ch. 13 - Distinguish between a fixed-order-quantity system...Ch. 13 - Discuss customer service level for an inventory...Ch. 13 - Explain the ABC inventory classification system...Ch. 13 - Identify the two basic decisions addressed by...Ch. 13 - Describe the major cost categories used in...Ch. 13 - Explain how the order quantity is determined using...
Ch. 13 - What are the assumptions of the basic EOQ model,...Ch. 13 - How are the reorder point and lead lime related in...Ch. 13 - Describe how the production quantity model differs...Ch. 13 - How must the application of the basic EOQ model be...Ch. 13 - Why do the basic EOQ model variations not include...Ch. 13 - In the production quantity EOQ model, what would...Ch. 13 - Explain in general terms how a safety stock level...Ch. 13 - Explain the difference between a single-stage...Ch. 13 - AV City stocks and sells a particular brand of...Ch. 13 - AV City (Problem 13.1) assumed with certainty that...Ch. 13 - A firm is faced with the attractive situation in...Ch. 13 - The Sofaworld Company purchases upholstery...Ch. 13 - The Wallace Stationery Company purchases paper...Ch. 13 - The Ambrosia Bakery makes calms for freezing and...Ch. 13 - The EastCoasters Bicycle Shop operates 364 days a...Ch. 13 - The Chemeo Company uses a highly toxic chemical in...Ch. 13 - The Food Place Supermarket stocks Munehkin...Ch. 13 - Kroft Foods makes cheese to supply to stores in...Ch. 13 - The Shotz Brewery produces an ale that it stores...Ch. 13 - Tradewinds Imports is an importer of ceramics from...Ch. 13 - JAL Trading is a Hong Kong manufacturer of...Ch. 13 - In Problem 12.1 in Chapter 12, the Hartley-Davis...Ch. 13 - In Problem 12-2 in Chapter 12, Carpel City orders...Ch. 13 - In Problem 12.47 in Chapter 12, Delaplane...Ch. 13 - The Paramount Paper company produces paper from...Ch. 13 - Kellys Tavern serves Shamrock draft beer to its...Ch. 13 - The daily demand for Ironcoat paint at the Top...Ch. 13 - IM Systems assembles microcomputers from genetic...Ch. 13 - IM Systems assembles microcomputers from generic...Ch. 13 - KVS Pharmacy fills prescriptions fen a popular...Ch. 13 - Food Place Market stocks frozen pizzas in a...Ch. 13 - The Mediterranean Restaurant stocks a red Chilean...Ch. 13 - The Aztec Company stock a variety of parts and...Ch. 13 - The EastCoasters Bicycle Shop stocks bikes;...Ch. 13 - Tara McCoy is the office administrator for the...Ch. 13 - The concession stand at the Shelby High School...Ch. 13 - The Instant Paper Clip Office Supply Company...Ch. 13 - The Texas Gladiators Apparel Store The Texas...Ch. 13 - Pharr Foods Company Pharr Foods Company produces a...
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- The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.arrow_forwardBakery 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)arrow_forwardDaily demand for fresh cauliflower in the ZZ-Warehouse store follows normal distribution with mean 100 cartons and s.d. 20 cartons. The ZZ-Warehouse buys at a cost of $50.00 per carton, sells it for $70.00 per carton. Unsold cartons are sold for $20.00 per carton. Cost of shortage = 70-50 = 20; cost of excess = 50-20 = 30; Ratio using (20.1), the service level = (20/(20+30))= 0.4 What is the optimal order quantity, using the single period – continuous demand model? a. 105 b. 95 c. 110 d. 100 e. 80arrow_forward
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