Assuming perfectly constant demand, if lead time increases from 5 to 10 days, what happens to the reorder point?

Q: Daily demand for a product is 50 units, with a standard deviation of 35 units. The review period is…

A: Lead time is total time incurred from the beginning of the process till its ending. In short, it is…

Q: What is the cause of inventory issues and what fundamental principles does it reveal?

A: Without stock, the manufacturing process will not be able to work. As a result, management must…

Q: Suppose you are the assistant controller for a retail establishment that is an independent…

A: The difference between a periodic inventory system and a perpetual inventory system is that a…

Q: Lead time for one of your fastest-moving products is deterministic and equal to 21 days. Demand…

A: Given data is Lead time (L) = 21 days Avg demand (d) = 100 units per day 70% z value = 1.036

Q: Company X has a demand of 75 Lakhs per year. Setup cost and holding cost are $29 and $35 per unit.…

A: Given data is Annual demand = 75 lakhs per year Setup cost = $29 per unit Holding cost = $35 per…

Q: Use the information provided below and classifies the inventory items according to the ABC…

A: Cost is the total amount that the company incurred during the production of products and services…

Q: Assuming that demand is constant, what should be the reorder quantity that minimises the total cost…

A: Given Demand (D) = 500000 Unit price (Cu) = $50 Ordering cost (Co) = $10.39 ( 1 OMR = $2.6) Holding…

Q: Describe the perpetual and the periodic inventory systems. Are there circumstances in which one…

A: A periodic review system uses an occasional physical count of all the inventory balances of all the…

Q: ABC company has a need for goods per week is 100 kg, lead time based on observation = 3 weeks and…

A: Given, Average good= 100 kg Daily Need= 14.28 Lead time= 3 weeks Safety stock

Q: The daily demand for integrated circuit boards by mythical Reliance Computers, which assembles…

A: Given data  Daily demand (d) = 80 units  Standard deviation σ= 6 units  Lead time (LT) = 9 days…

Q: 3. If the lead time is four days and the daily demand is 25, what is the reorder point?

A: Given, Daily demand =  25 units Lead time =  4 days Safety stock = 0

Q: A regional service shop for a TV manufacturer keeps a stock of TV circuits. The purchasing lead time…

A: Given, Cost of Circuit = $90 Selling Price of Circuit = $150 Holding Cost = 25%…

Q: During times of inflation, why does the value of inventory change between FIFO and LIFO evaluation?

A: FIFOFIFO implies first in is first out and hence what was purchased earlier gets sold (or moved out…

Q: Discuss the kind of information that is shown in a perpetual inventory record?

A: Perpetual inventory is a type of management accounting that uses computerized technology and asset…

Q: When cycle counting inventory, why do experts recommend a lower acceptable error tolerance for A…

A: When experts recommend cycle counting inventory a lower acceptable error tolerance for A items than…

Q: When quantity discounts are offered, why is it not necessary to check discount points that are below…

A: A quantity discount is an incentive given to a purchaser that, when purchased in larger quantities,…

Q: Lead time for one of your fastest-moving products is21 days. Demand during this period averages 100…

A: Lead time is the total time taken by the manufacturer or supplier of the product industry who…

Q: Demand for an item is constant at 1,000 units a year. Unit cost is £50, reorder cost is £100,…

A: Here,Demand (D) = 1000 units Unit cost (UC) = $50 Re order cost (RC) = $100 Holding cost (HC) = 25%…

Q: Explain what are the type of demand distribution effects on inventory situations?

A: There are several types of demand distribution forecasting models that are used, including…

Q: I can get a discount of a nickel per roll if I order 2,000 rolls at a time. Under this option, what…

A: THE ANSWER IS AS BELOW:

Q: The decision of how much inventory on hand reflects a trade-off, for example, how much money to tie…

A: Inventory Management  Inventory management is a structured approach of sourcing, storing, and…

Q: snip

A: Fixed Order Quantity refers to ordering a fixed volume or quantity of order size, whenever inventory…

Q: What are the different types of inventory carrying costs? Are these expenses constant or variable,…

A: Inventory are the material i.e Raw material work in progress finished goods

Q: An company of furniture manufacturing purchases timber wood planket at $ 56 per unit. The annual…

A: To be determined: Economic order quantity and re-order point of the company   Given in the question:…

Q: snip

A: Inventory is the stock of goods kept by every retailer/wholesaler to deal with the demands of a…

Q: Differentiate between Fixed Order Quantity Model, Fixed Time Period Model and Determine the Economic…

A: The most significant distinction between the fixed order quantity and fixed time period systems is…

Q: a) Cycle Inventory b) Total cost c) Reorder level if lead time is constant at 4 days

A: Economic order quantity is the optimal quantity that the company should buy so that their cost of…

Q: Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of…

A: Annual demand (D) = 13,000 units Weekly demand (d) = 250 units Standard deviation (S) = 40 units…

Q: What trade-offs are involved in each of these aspects of inventory management?a. Buying additional…

A: The quantity discount model of inventory management takes into account the possible quantity…

Q: Inventory management - Holding costs Consider two products A and B that have identical cost, retail…

A: Inventory management can be stated as the systematic process of sourcing, stocking, and selling…

Q: A billiard ball maker must place orders for resin, a raw material for billiard balls. It uses resin…

A: Given, Ordering cost, o =$150 Holding cost, h =$0.4 Lead time, L =4 days Number of working days, w…

Q: Demand for your product averages 10,000 units per year.  Placing an order costs $500.  The holding…

A: Given - Annual demand (D)- 10,000 units Order costs (S) - $500 units Holding cost (H) - 15% of the…

Q: (b) What is reorder point (c) What is absolute maximum inventory? (d) What is the normal maximum…

A: THE ANSWER IS AS BELOW:

Q: Knowing both "carrying costs" and "ordering costs" are important when answering inventory questions…

A: Inventory management sometimes stock management, is one of the important parts of working capital…

Q: A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady…

A: The re-order point is the point at which the company should purchase the new material or resources…

Q: snip

A: Annual demand, D= 10*12                                =120 Order cost,  S = $15 Holding cost, H=…

Q: Grey Wolf Lodge is a popular 500-room hotel in the North Woods. Managers need to keep close tabson…

A: Daily demand (d) = 275 bars Ordering cost (Co) = $10 Holding cost (H) = $0.30 Lead time (L) = 5 days…

Q: The electrolyte drink for our beloved NMSU soccer team average normally distributed demand of 5…

A: The reorder point (ROP) can be defined as a degree of stock which triggers an activity to recharge…

Q: XYZ Pharmaceuticals sells COVID testing kits.  Calculate the Economic Order Quantity, or EOQ, if…

A: The economic order quantity is the ideal order quantity for a business to obtain in order to…

Q: Authentic Thai rattan chairs are delivered to Gary​ Schwartz's chain of retail​ stores, called The…

A: Stockout cost = number of units short*the probability*stockout cost For safety stock = 0 (When…

Q: Describe the difference between independent and dependent demand and give an example of each for a…

A: Demand and supply are two concepts wherein, the company relies in these two. Company needs to…

Q: How are the reorder point and lead time related in inventory analysis?

A: The reorder point (ROP) is the degree of stock which triggers an activity to renew that specific…

Q: When demand is not constant, the reorder point is a function of what four parameters?

A: Reorder Point is the lowest inventory level at which a new order must be placed to avoid a…

Q: Lead time for one of your fastest-moving products is 21 days. Demand during this period averages 100…

A: The Re-order point is the point that triggers to order the required quantity. It is generally the…

Q: Demand for an item is constant at 40 units a week, and the economic order quantity is calculated to…

A: Small Introduction of Reorder Level The reorder level (or reorder point) in management accounting…

Q: snip

A: A stockout occurs when demand is not fulfilled as the customer orders increase the amount of…

Q: What is a the advantage of using the Fixed-Order-Quantity model in inventory management?

A: Inventory management is the management in which raw materials and finished products and stored and…

Q: Authentic Thai rattan chairs (shown in the photo)are delivered to Gary Schwartz’s chain of retail…

A: Given data is, Reorder point = 200 chairs Carrying cost = $30 per unit per year Stockout cost = $70…

Forecasting

Forecasting is a methodology that uses historical data as inputs to make well-informed predictions about the course of future trends. Forecasting is the method of making forecasts based on historical and current data, most commonly by trend analysis. In the business world, forecasting is a basic statistical task. Forecasting is used by businesses to decide how to allocate their budgets or prepare for expected expenditures in the future. Forecasts help managers formulate and execute production plans by providing forecasts. The primary goal of forecasting is to make accurate predictions.