A dog food store uses the order-up-to policy to manage its dog food inventory. The order-up-to level S = 360 bags of dog food. Please use the order-up-to policy to determine the orderquantity for the two scenarios below.Scenario 1. The store has 120 bags of dog food on-hand and 200 bags of dog food on-order.The store should orderbags. (Report 0 if you think the store should notorder any more dog food.)Scenario 2. The store has 20 bags of dog food backordered and 400 bags of dog food intransit. The store should orderbags. (Report 0 if you think the storeshould not order any more dog food.)

Given- Order-up-to level of inventory of the Dogfood S = 360 bags Scenario 1:Dog food available on…

Answered: A dog food store uses the order-up-to…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year.The purchase price is $20 per tire if fewer than 500 tires are ordered, $18 per tire if 500 or more-but fewer than 1,000- tires a re ordered, and $17 per tire if I ,000 or more tires areordered.a) How many tires should Rocky Mountain order each time it places an order?b) What is the total cost of this policy?
The materials manager of a tire manfacturer must predict periodically place order for a key chemical one of the raw materials used in manufacturing uses the chemical at a rate of 300lbs each week and the lead time of delivery is 4 days. Assume that the manufacturing operation runs 5 days a week. At what point should the chemical be reorderedd a. when 1200lbs are remaining b. where 0lbs are remaining c. where 375lbs are remaining d. when 240lbs are rem
The inventory of Metformin 500 mg tablets is to be maintained at a minimum par level of 300 tablets and a maximum par level of 1000 tablets. If 320 tablets are left on the shelf at the end of the day, how many bottles will you order to meet the inventory minimum? Metformin is available in package sizes containing 500-count and 1000-count. Group of answer choices 1 bottle of 500-count None, current inventory is less than the par level 1 bottle of 1000-count None, current inventory is greater than the par level
Order-up to model is that have been ordered but have not been received. Order up to level is when stock levels are periodically reviewed, and an amount of the item is ordered to return stock levels to the target level. Which of the following is true about the order-up to model? A. It prevents a company from being out of stock B. It is useful for a goods with a short shelf life C. As lead time decreases, inventory levels will decrease.
. (Furniture Store) You are the store manager at a large furniture store. One of your products is a study desk. Weekly demand for the desk is normally distributed with mean 40 and standard deviation 20. The lead time from the assembly plant to your store is two weeks and you order inventory replenishments weekly. Except for part i., you use the order-up-to model to control inventory. Suppose your order-up-to level is S = 220. You are about to place an order and note that your inventory level is 100 and you have 85 desks on order. How many desks will you order? Suppose your order-up-to level is S = 220. You are about to place an order and note that your inventory level is 160 and you have 65 desks on order. How many desks will you order? What is the optimal order-up-to level if you want to target a 98 percent in-stock probability? What is the optimal order-up-to level if you want to target a 98 percent fill rate? ( Hint : adapt the exact formulae for the newsvendor problem ,…
Wayne Hills Hospital in tiny Wayne, Nebraska faces a problem common to large, urban hospitals as well as to small, remote ones like itself. That problem is deciding how much of each type of whole blood to keep in stock. Because blood is expensive and has a limited shelf life (up to 5 weeks under 1-6 degrees Celsius refrigeration), Wayne Hills naturally wants to keep its stock as low as possible. Unfortunately, past disasters such as a major tornado and a train wreck demonstrated that lives would be lost when not enough blood was available to handle massive needs. The hospital administrator wants to set an 85% service level based on demand over the past decade. Discuss the implications of this decision. What is the hospital's responsibility with regard to stocking lifesaving medicines with short shelf lives? How would you set the inventory level for a commodity such as blood? . You should provide relevant and meaningful information to demonstrate more in-depth thoughts regarding…
Cynthia Knott's oyster bar buys fresh Louisiana oysters for $5 per pound and sells them for $9 per pound. Any oysters not sold that day are sold to her cousin, who has a nearby grocery store, for $3 per pound. Cynthia believes that demand follows the normal distribution, with a mean of 100 pounds and a standard deviation of 14 pounds. How many pounds should she order each day? Refer to the standard normal table LOADING... for z-values. Part 2 Cynthia should order enter your response here pounds of oysters each day (round your response to one decimal place).
E - Max uses the basic EOQ model to determine the order quantity . They used to buy electronics from a Korean supplier in Dubai with a lead - time of 5 days . Recently , the supplier has decided to close the warehouse in Dubai and deliver all items from Korea directly to customers in Oman with a lead time of 10 days . Under this situation , the economic order quantity will (Q^ * ) 1)double 2)None of these 3)increase , but not double 4)decrease by a factor of two 5)do remain the same
Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost minimizing solution for this product each year? ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.
An item with a holding cost of $400 per year can be shipped by air in 1 day, costing $250, or by ground in 5 days, costing $150. Assuming the holding costs of $400 per year are based on an operational year of 365 days, which is cheaper and by how much? Select one: a. Ground is cheaper by $95.62 b. . Air is cheaper by $100. c. Ground is cheaper by $70.89 d. Ground is cheaper by $60.00 e. Ground and air have the same total cost
Fixed-order-interval. This type of problem can be recognized when an order interval is given (e.g.,inventory is ordered every 10 days) along with the demand rate, lead time, and quantity on hand atorder time. Use Formula 13–16 to find the optimal order size.A lab orders a number of chemicals from the same supplier every 30 days. Lead time is five days.The assistant manager of the lab must determine how much of one of these chemicals to order. Acheck of stock revealed that eleven 25-milliliter (ml) jars are on hand. Daily usage of the chemical isapproximately normal with a mean of 15.2 ml per day and a standard deviation of 1.6 ml per day. Thedesired service level for this chemical is 95 percent.a. How many jars of the chemical should be ordered?b. What is the average amount of safety stock of the chemical?
A drill in a hardware store incurs a holding cost per unit of $10 per year. The storesells one of these drills per week all year long. Each time the store orders more drills, it ordersa case that contains 12 drills. What is the average inventory of drills at this hardware store?

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