: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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Asked Nov 27, 2019
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:6-38 North Manufacturing has a demand for 1,000 pumps
each year.
CHAPTER 6 INVENTORY CON
230
a
Manufacturing $40 to place an order, and the carry-
ing cost is 25% of the unit cost. If pumps are ordered
in quantities of 200, North Manufacturing can get a
3% discount on the cost of the pumps. Should North
Manufacturing order 200 pumps at a time and take
the 3% discount?
The cost of a pump is $50. It costs North
6-39 Linda Lechner is in charge of maintaining hospital
supplies at General Hospital. During the past year,
the mean lead time demand for bandage BX-5 was
60. Furthermore, the standard deviation for BX-5
was 7. Linda would like to maintain a 90% service
level. What safety stock level do you recommend for
ВХ-5?
brt
QUA
31-199
X200
:6-40 Linda Lechner has just been severely chastised for
her inventory policy. (See Problem 6-39.) Sue Sur-
rowski, her boss, believes that the service level
should be either 95% or 98%. Compute the safety
stock levels for a 95% and a 98% service level.
500
6-43
Linda knows that the carrying cost of BX-5 is 50
cents per unit per year. Compute the carrying cost
that 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. As
a young manager, he has more important things to
do. The following is a table of six items in inventory
along with the unit cost and the demand in units.
(a) Find the total amount spent on each item during
the year. What is the total investment for all of
3d
these?
(b) Find the percentage of the total investment in in-
ventory that is spent on each item.
93
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:6-38 North Manufacturing has a demand for 1,000 pumps each year. CHAPTER 6 INVENTORY CON 230 a Manufacturing $40 to place an order, and the carry- ing cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of the pumps. Should North Manufacturing order 200 pumps at a time and take the 3% discount? The cost of a pump is $50. It costs North 6-39 Linda Lechner is in charge of maintaining hospital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60. Furthermore, the standard deviation for BX-5 was 7. Linda would like to maintain a 90% service level. What safety stock level do you recommend for ВХ-5? brt QUA 31-199 X200 :6-40 Linda Lechner has just been severely chastised for her inventory policy. (See Problem 6-39.) Sue Sur- rowski, her boss, believes that the service level should be either 95% or 98%. Compute the safety stock levels for a 95% and a 98% service level. 500 6-43 Linda knows that the carrying cost of BX-5 is 50 cents per unit per year. Compute the carrying cost that 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. As a young manager, he has more important things to do. The following is a table of six items in inventory along with the unit cost and the demand in units. (a) Find the total amount spent on each item during the year. What is the total investment for all of 3d these? (b) Find the percentage of the total investment in in- ventory that is spent on each item. 93

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Expert Answer

Step 1

Compute Safety stock:...

SS Zxa
For 90%
sS 1.28 x7 8.96
For 95%
SS 1.64 x7 11.48
For 98%
SS 2.05x7 14.35
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SS Zxa For 90% sS 1.28 x7 8.96 For 95% SS 1.64 x7 11.48 For 98% SS 2.05x7 14.35

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