A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 1.5 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1OMR per unit. The retailer operates 300 days per year. What is the optimal backorder (shortage) level in units? Round-up to the nearest integer

A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 1.5 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1OMR per unit. The retailer operates 300 days per year. What is the optimal backorder (shortage) level in units? Round-up to the nearest integer

Name: A local retailer anticipates an annual demand 12000 units of a product
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Description: A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 1.5 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the ann

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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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.
7. Alocal retailer anticipates an annual demand 12000 units of a product. The retailers allows shortages for that product, and these shortages are backordered at a rate of 2 OMR per unit backordered. The cost of ordering is 200 OMR, whereas , the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the minimum total inventory cost in OMR? Round -up to the nearest integer a. 1998 b. 1550 c. 1789 d. None is correct e. 2000 f. 1987 g. 1898
8. A local retailer anticipates an annual demand 12000 units of a product. The retailer allows shortages for that product, and these shortages are backordered at a rate of 4 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal maximum inventory level? Round - up to the nearest integer ? a. 1987 b. 1789 c. 1960 d. None is correct e. 1898
3. A local retailer anticipates an annual demand 12000 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 1.5 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal backorder (shortage) level in units? Round - up to the nearest integer ?? a. 633 b. 1132 C. 1450 d. 860 e. 895 f. None is correct
A cable company needs to stock universal remote devices. They expect annual demand to be 1000 and ordering cost is $50. The annual holding cost is 25% of the unit price per unit. In addition, supplier has provided below price schedule. How much quantity would you order to minimize the cost? Show calculations to justify your answer. Quantity Unit Price 1-200 $15.00 201 - 399 $14.00
I need a detailed explanation on how to solve this problem: A paint shop implements an inventory policy on its stock of white paint, which costs the store $6 per can. Monthly demand for cans of white paint is normal with mean 28 and standard deviation 8. The replenishment lead time is 14 weeks. Excess demand is backordered, but costs $10 per back ordered can in labor and loss of goodwill. There is a fixed cost of $15 per order, and the holding cost is based on 30% interest rate per annum. In your computations, assume 4 weeks per month. - Write down the model name and parameters. - What are the optimal lot size and reorder points for white paint (include the formulas)? - What is the optimal safety stock (include the formula)? *** Suppose the paint shop from the above problem adopts a service level policy. - What are the optimal lot size and reorder points for white paint, such that 90% of the cycles are filled without backordering (include all formulas)? - What is the fill rate…
The Annual demand of a product is 50000 and ordering cost is 7000 per order and EOQ is 10000 units. At optimum annual inventory, what is the total yearly holding cost?
Rapallo Sneakers, Inc. sells a pair of LG sneakers for $42. Due to the recent fitness craze, these shoes are in high demand: 52 pairs of shoes are sold per week. The ordering cost is $42 per order, and the annual holding cost is 25 percent of the selling price. If the store operates 48 weeks a year, what can you say about the size of the current order quantity of 225 pairs?
Please do not give solution in image format thanku A distributor of computer monitors purchases the monitors from an overseas supplier under a continuous review system. The average demand for a popular computer monitor is normally distributed with a mean of 50 units a day and a standard deviation of 10 units a day. It costs $75 to process each order and there is a 16 day lead time. The holding cost for each monitor is $20 per year and the distributor wishes to maintain a 90% service level. The distributor operates 300 days in a year. Use the information in Scenario 9.10. If lead-time increases by nine days, what is the reorder point needed to maintain a 90% service level? Group of answer choices greater than 1,000 units but less than or equal to 1,250 units greater than 1,250 units less than or equal to 750 units greater than 750 units but less than or equal to 1,000 units
1. A local retailer anticipates an annual demand 15000 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 4 OMR per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1OMR per unit. The retailer operates 300 days per year. What is the minimum total inventory cost in OMR? Round-up to the nearest integer?? a. 1960 O b. 2191 C. 1789 d. 1898 e. 1550 O f. None is correct
Dave's Sporting Goods sells Mountain Mouse freeze-dried meals. Dave's uses a continuous review system to manage meal inventories. Suppose Mountain Mouse offers the following volume discounts to its customers: 1−950 meals: $6.50 per meal 951 or more meals: $4.50 per meal. Annual demand is 2,900 meals, and the cost to place an order is $23. Suppose the holding cost is $1.50 per meal per year. How many meals should Dave's order at a time? Part 2 Dave's Sporting Goods should order ______ meals at a time to take advantage of the lower cost per unit. (Enter your response rounded to the nearest whole number.)
A big box store sells a lawn mower. Annual demand for the lawn mower is 600 units. The ordering cost per order of lawnmowers is $20. The annual holding cost per unit is $15. Assuming the store uses the EOQ as the order size, what would be the total annual ordering cost for the lawnmower? PLEASE WRITE ONLY THE TOTAL ORDERING COST WITHOUT $ sign in the box below.