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Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items custorners want. The 28 ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the nght quantity at the right time. She collected the following datar Demand-7 boxes per week Order cost 575/order Item cost $150/box Inventory-holding cost- 10 percent per year Service level91 percent Store open 46 weeks/year Lead-time 4 weeks Std. deviation in weekly demand- 7 Brenda wants to consider setting up a fixed-period inventory systerm for the 28-ounce bottle of Super Algaecide (SA) SKU, AM the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 85 units on-hand. There were no scheduled receipts and 40 units were on backorder. a. What is the review period (7) Do not round intermediate calculations. Round your answer up to the nearest whole number. weeks b. What is stock replenishment level with safety stack (M) De not round intermediate calculations. Round your answer to the nearest whole number. bottles C How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number. orders/year

Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items custorners want. The 28 ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the nght quantity at the right time. She collected the following datar Demand-7 boxes per week Order cost 575/order Item cost $150/box Inventory-holding cost- 10 percent per year Service level91 percent Store open 46 weeks/year Lead-time 4 weeks Std. deviation in weekly demand- 7 Brenda wants to consider setting up a fixed-period inventory systerm for the 28-ounce bottle of Super Algaecide (SA) SKU, AM the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 85 units on-hand. There were no scheduled receipts and 40 units were on backorder. a. What is the review period (7) Do not round intermediate calculations. Round your answer up to the nearest whole number. weeks b. What is stock replenishment level with safety stack (M) De not round intermediate calculations. Round your answer to the nearest whole number. bottles C How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number. orders/year

Purchasing and Supply Chain Management
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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Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. The 28 ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following datar Demand - 7 boxes per week Store open - 48 weeks/year Order cost - 575/order Lead-time4 weeks them cost - $150/box Std. deviation in weekly demand - 7 Inventory holding cost - 10 percent per year Service level - 91 percent Brenda wants to consider setting up a fixed-period inventory system for the 28-ounce bottle of Super Algaecide (SA) SKU, AM the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 85 units on-hand. There were no scheduled receipts and 40 units were on backorder. a. What is the review period (7) Do not round intermediate calculations. Round your answer up to the nearest whole number. weeks b. What is stock replenishment level with safety stack (M)? Do not round intermediate calculations. Round your answer to the nearest whole number. bottles C How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number, orders/year
Transcribed Image Text:Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. The 28 ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following datar Demand - 7 boxes per week Store open - 48 weeks/year Order cost - 575/order Lead-time4 weeks them cost - $150/box Std. deviation in weekly demand - 7 Inventory holding cost - 10 percent per year Service level - 91 percent Brenda wants to consider setting up a fixed-period inventory system for the 28-ounce bottle of Super Algaecide (SA) SKU, AM the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 85 units on-hand. There were no scheduled receipts and 40 units were on backorder. a. What is the review period (7) Do not round intermediate calculations. Round your answer up to the nearest whole number. weeks b. What is stock replenishment level with safety stack (M)? Do not round intermediate calculations. Round your answer to the nearest whole number. bottles C How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number, orders/year
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