Using the information given in problem 11 AND 12, please answer and show calculations for problem 12. demand$2. What is the economic order quantity for the biscuits?range dog biscuits every year. The fixed ordering cost is12.)(**) Suppose Ollah decides to order 200 bags at a time.and service level information in problem 9. Is the reorderand the same 95% service level? (Note that because thestandard deviation of weekly demand is 16, basic statisticstells us the standard deviation of demand over 3 weeksyear be? (For this problem, don't consider safety stock11.)(*) Ollah's Organic Pet Shop sells about 4,000 bags of free-What would the total ordering and holding costs for the= 0).$15, and the cost of holding a bag in inventory for a year ispoint higher or lower? Explain why.when calculating holding costs.)13. (**) Average weekly demand for free-range dog biscuits is 80bags per week, with a standard deviation of 16 bags. Ollahuses a continuous inventory review system to manage inven-tory of the biscuits. Ollah wants to set the reorder point highenough that there is only a 5% chance of running out beforethe next order comes in. Assuming that the lead time is aconstant 2 weeks, what should the reorder point be?14. (**) Suppose Ollah decides to use a periodic review systemto manage the free-range dog biscuits, with the vendorchecking inventory levels every week. Under this scenario,what would the restocking level be, assuming the same de-mand and lead time characteristics listed in problem 13will be V3 x 16- 28.)5. Ollah’s Organic Pet Shon sells hbedding o

We are going to use Economic Order Quantity and Total holding & operating cost concept to answer…

11.)(*) Ollah’s Organic Pet Shop sells about 4,000 bags of free- range dog biscuits every year. The fixed ordering cost is $15, and the cost of holding a bag in inventory for a year is $2. What is the economic order quantity for the biscuits? )(**) Suppose Ollah decides to order 200 bags at a time. What would the total ordering and holding costs for the year be? (For this problem, don't consider safety stock when calculating holding costs.)

11.)(*) Ollah’s Organic Pet Shop sells about 4,000 bags of free- range dog biscuits every year. The fixed ordering cost is $15, and the cost of holding a bag in inventory for a year is $2. What is the economic order quantity for the biscuits? )(**) Suppose Ollah decides to order 200 bags at a time. What would the total ordering and holding costs for the year be? (For this problem, don't consider safety stock when calculating holding costs.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 6E

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