a) The reorder point = enter your response here breads (round your response to the nearest whole number). b) The safety stock = enter your response here breads (round your response to the nearest whole number).
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- A plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280 drills. The whole-saler’s average demand is 70 drills a week, and the lead time from the plant is 3 weeks. The wholesaler mustpay for the inventory from the moment the plant makes a shipment. If the wholesaler is willing to increase itspurchase quantity to 350 units, the plant will give priority to the wholesaler and guarantee a lead time of only2 weeks. What is the effect on the wholesaler’s cycle and pipeline inventories?YOZECH Enterprise is frequently losing sales due to stock-outs. To avoid this problem, the owner likes to implement a new system of maintaining an inventory level which will include a safety stock. After looking into the past records of the company, it was determined that the normal usage during the lead time of 12 days is 120 units while the maximum usage is 150 units for 15 days. Based on the given information, what should be the safety stock of YOZECH Enterprise? What is the ROP (Re-order point)?Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature oak file is estimated to be 5,000 units. The annual cost of carrying one unit in inventory is P10, and the cost to initiate a production run is P1,000. There are no miniature oak files on hand, and Cassie has scheduled four equal production runs of the miniature oak file for the coming year, the first of which is to be run immediately. Cassie has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Cassie does not maintain a safety stock, the estimated total carrying costs for the office fixtures for the coming year based on their current schedule is Answer: Refer to Cassie, the number of production runs per year of the miniature oak files that would minimize the sum of carrying costs and setup costs for the coming year is Answer:
- A manager receives a forecast for next year. Demand is projected to be 570 units for the first half of the year and 930 units for the second half. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order.Alpha retail store predicts an annual demand of 4920 kgs of a food product. RO 100 to make and receive an orderand it takes 12 workdays to receive it. The annual holding cost 15of purchase price. The price RO 2 per kg The company is operating workdays per week in a - week year. What is the expected time (days) between ordersRoundup to the nearest integerWilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7500 copies. The cost of one copy of the book is $14.50. The holding cost is based on an 20% annual rate, and production setup costs are $150 per setup. The equipment on which the book is produced has an annual production volume of 25,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. Use the Economic Production Quantity model to compute the following values: Minimum cost production lot size Number of production runs per year Cycle time Length of a production run Maximum inventory Total annual cost Reorder point
- The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of resin, what would be the average inventory level?Exhausting Enterprises is an auto parts supplier that delivers ordered parts to neighboring mechanics. The mechanics do not have room or the capital to store all the parts they may need so they place orders multiple times during the day. Exhausting Enterprises has a small fleet of delivery vans to make deliveries. Focusing on alternators, lead time for Exhausting Enterprises to receive more alternators from their supplier is 2 days. Alternators experience an average daily demand of 0.8 and follow a Poisson distribution. At the start of the day, Exhausting Enterprises has a backorder of 1 alternator and none in-stock. There are 4 alternators on the way. How many alternators will Exhausting Enterprises need to order if their order-up-to level is set to 7? What is the average on-hand inventory and on-order inventory for alternators? What is the probability of alternators being in-stock?Fuego Limited is a table-glass retailer located in Vancouver. The company purchases glasses from Anderson PLC. The details of the table glasses are as follows: The purchase price per glass – $3,000 Cost of an order - $500 The annual cost of carrying a glass - 2% of the purchase price Monthly Demand - 1,250 Units The company has been offered a discount of 1% on the price of a table glass if the lot size is 3,000 table glasses at a time. Required: i. Calculate the Economic Order Quantity. ii. Calculate the total inventory cost. iii. Draw a graph and discuss the behavior of the total inventory holding cost, total ordering cost, and total cost for the given scenario. iv. Advise whether the quantity discount offer can be accepted (Assume that the inventory carrying cost does not vary according to the discount policy)
- Consider a continuous review inventory system. Demand is normally distributed with an average of 28,000 per month and a monthly standard deviation of 5000 units. Lead time is 5 weeks (assume four weeks per month) (round Z-values, standard deviations to two decimal places). If the firm desires a(n) 86%cycle service level, it should hold ... units of safety stock (round your response to the nearest integer).Charles cycles produces bicycles and tricycles.The setup cost when switching production from one to the other is $3300. On average,retail customers order 240 tricycles per day (consider a 250-day year). The daily production rate for tricycles is 830 units. Unit cost of a tricycle is $84 and the company has determined inventory carrying cost to be 15%. What should the production order quantity in units be ? (Round up the answer to the next whole number?Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature oak file is estimated to be 5,000 units. The annual cost of carrying one unit in inventory is P10, and the cost to initiate a production run is P1,000. There are no miniature oak files on hard, and Cassie has scheduled four equal production runs of the miniature oak file for the coming year, the first of which is to be run immediately. Cassie has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Cassie does not maintain a safety stock, the estimated total carrying costs for the office fixtures for the coming year based on their current schedule is?The number of production runs per year of the miniature oak files that would minimize the sum of carrying costs and setup costs for the coming year is?