Annual demand (D) is 3,650 units (constant). Lead time (LT) is 10 days (constant). Find reorder point (ROP). Group of answer choices 365 units 36,500 units 0 units Cannot be determined 100 units
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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.Lead time for one of your fastest-moving products is 20 days. Demand during this period averages 110 units per day. Part 2 a) What would be an appropriate reorder point? _______ units (enter your response as a whole number). b) How does your answer change if demand during lead time doubles? c) How does your answer change if demand during lead time drops in half?Ezrah is attempting to perform an inventory analysis on one of her most popular beauty products, the Heavenly perfume Annual demand for this product is 10,000 units with carrying costs of P50 per unit per year . ordering costs for her company typically run P100 per order Lead time averages 10 days (Assume 250 working days) What is the economic order quantity?
- Ezrah is attempting to perform an inventory analysis on one of her most popular beauty products, the "Heavenly perfume. Annual demand for this product is 10,000 units with carrying costs of P50 per unit per year. The ordering costs for her company typically run P100 per order. Lead time averages 10 days( Assume 250 working days). Compute the total inventory costWeekly Average Demand 110 Standard deviation of (weekly) demand 30 Setup cost ($) 1400 Lead time (in weeks) 2 Procurement cost ($) 200 Holding cost /unit/week ($) 3 You are given the demand and inventory related information about a grocery store’s product in the table. The store is open for 46 weeks in a year. What is the reorder point if it wants to achieve a service level of 97%? (Do not round your intermediate calculations. Round your final answers to the nearest whole number.Saga ltd. produces electronic toys for children between the ages of 7-10 years old. The toys use a processor that is imported from Japan. Annual demand for the processor is 12,500. The holding cost per processor per year is $2. Ordering cost per order is $400. Lead time is 7 days and the number of working days in the year is 250. d. What is the optimal number of days between any two orders? e. What is the reorder point? f. Given the EOQ, what is the total annual inventory cost?
- The following information regarding inventory policy was assembled by the GB Inc. The company uses a 50-week year in all calculations: Sales: 10,000 units per year Order quantity: 2,000 units Safety stock: 1,300 units Lead time: 4 weeks The reorder point is: 3,300 units 2,100 units 100 units 1,300 unitsAnnual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit. To provide a 98 percent service probability, what must the reorder point be? Note: Use Excel's NORM.S.INV() function to find the z value. Round z value to 2 decimal places and final answer to the nearest whole number. Suppose the production manager is told to reduce the safety stock of this item by 100 units. If this is done, what will the new service probability be? Note: Use Excel's NORM.S.DIST() function to find the correct probability for your computed z value. Round z value to 2 decimal places and final answer to the nearest whole percent.Lead time for one of your fastest-moving products is21 days. Demand during this period averages 100 units per day.a) What would be an appropriate reorder point?b) How does your answer change if demand during lead timedoubles?c) How does your answer change if demand during lead timedrops in half?
- Ricky Orange’s annual demand is 12,500 units. Ordering cost is $100 per order. Holding cost is estimated at 20% of product cost which is $50 per unit. What is the number of orders per year using EOQ to compute the best quantity to order?The Cerebro Computer Store purchase printers for $100 each. Demand for this is constant during the year, and annual demand is forecasted to be 1350 units. The holding cost is $20 per unit per year, while the cost of ordering is $90 per order. There are 270 working days per year and the lead-time is 8 days. What is the annual order cost? Enter your answer with two decimal places.Thomas Kratzer is the purchasing manager for theheadquarters of a large insurance company chain with a centralinventory operation. Thomas’s fastest-moving inventory item hasa demand of 6,000 units per year. The cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. The aver-age ordering cost is $30 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (This is acorporate operation, and there are 250 working days per year.)a) What is the EOQ?b) What is the average inventory if the EOQ is used?c) What is the optimal number of orders per year?d) What is the optimal number of days in between any two orders?e) What is the annual cost of ordering and holding inventory?f ) What is the total annual inventory cost, including the cost ofthe 6,000 units?