# :6-38 North Manufacturing has a demand for 1,000 pumpseach year.CHAPTER 6 INVENTORY CON230aManufacturing \$40 to place an order, and the carry-ing cost is 25% of the unit cost. If pumps are orderedin quantities of 200, North Manufacturing can get a3% discount on the cost of the pumps. Should NorthManufacturing order 200 pumps at a time and takethe 3% discount?The cost of a pump is \$50. It costs North6-39 Linda Lechner is in charge of maintaining hospitalsupplies at General Hospital. During the past year,the mean lead time demand for bandage BX-5 was60. Furthermore, the standard deviation for BX-5was 7. Linda would like to maintain a 90% servicelevel. What safety stock level do you recommend forВХ-5?brtQUA31-199X200:6-40 Linda Lechner has just been severely chastised forher inventory policy. (See Problem 6-39.) Sue Sur-rowski, her boss, believes that the service levelshould be either 95% or 98%. Compute the safetystock levels for a 95% and a 98% service level.5006-43Linda knows that the carrying cost of BX-5 is 50cents per unit per year. Compute the carrying costthat is associated with a 90%, a 95%, and a 98% ser-vice level.6-41 Ralph Janaro simply does not have time to ana-lyze all of the items in his company's inventory. Asa young manager, he has more important things todo. The following is a table of six items in inventoryalong with the unit cost and the demand in units.(a) Find the total amount spent on each item duringthe year. What is the total investment for all of3dthese?(b) Find the percentage of the total investment in in-ventory that is spent on each item.93

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