Daily demand for day-glo hyacinths at Florida Flo's Fluorescent Florals is 130 pots, with a dally standard deviation of 15 pots. There are 10 days between orders and the lead time is 10 days. At the time of review there are 70 pots in stock. If a 90 percent service level during the vulnerable period is desired, how many pots should be ordered? Round the z score and Intermediate calculations to 2 decimal places (e.g. 0.58) and your final answer to the nearest whole number Ordered quantity pots

Daily demand for day-glo hyacinths at Florida Flo's Fluorescent Florals is 130 pots, with a dally standard deviation of 15 pots. There are 10 days between orders and the lead time is 10 days. At the time of review there are 70 pots in stock. If a 90 percent service level during the vulnerable period is desired, how many pots should be ordered? Round the z score and Intermediate calculations to 2 decimal places (e.g. 0.58) and your final answer to the nearest whole number Ordered quantity pots

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 1E: Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of...

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Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of seven days, and a desired safety stock of 2,500 lb. a. Determine the order point. b. Determine the number of pounds to be issued from safety stock if the new order is four days late.
The S&OP team at Kansas Furniture has received the following estimates of demand requirements: Month Expected Demand Jul 1,000 Aug 1,200 Sep 1,400 Oct 1,800 Nov 1,800 Dec 1,800 Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $20 per unit per month, and subcontracting cost of $45 per unit. Evaluate the following plan: keep the current workforce steady at a level producing 1,300 units per month. Subcontract the remainder to meet demand. Assume that 300 units remaining from June are available in July. A) What is the total inventory carrying cost? B) What is the total subcontracting cost? C) What is the stockout cost?
The sales of Neon Co. for a year in units is amounted to 14,400. Due to some shipping and transportation restrictions, the maximum possible lead time for the orders is 10 days, therefore, a safety stock of 120 units is set. Using 360 days per year, determine the normal lead time?
Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The company desires a safety stock of 500 units. A 5-day lead time is needed for delivery. Annual inventory carrying costs equal 25% of the average inventory level. The company pays P4 per unit to buy the product, which it sells for P8. The company pays P150 to place a detailed order, and the monthly demand for the product is 4,000 units. Compute for the annual inventory carrying cost.
Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 unitsper month. The valve cost of RO 1.50 per unit when bought in large quantities, and the carrying cost is estimated to be 20% of average inventory investment on an annual basis. The cost to place an order and process the delivery is RO18. It takes 45 days to receive delivery from the date of an order and a safety stock of 3250 vales isdesired. You are required to determine. a. The most economical order quantity and frequency of orders.b. The most economical order quantity if the valves cost is RO 4.50 eac
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Harrowing Company has the following information: Annual demand =3,500 units Order size = 500 units Ordering cost per order =$400 Carryingcosts per unit for one year =$40 Lead time (maximum 20 days)=10days Maximumd use =25 units Work year =250days Required: a.Determine the economic order quantity for Harrowing b. Determine the reorder point. c. What is the safety stock needed to prevent stockouts?
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Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it. The annual holding cost is 20 % of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. What is the expected time (in days) between orders? Round-up to the nearest integer
. Skinner’s Fish Market buys fresh Boston bluefish daily for $4.20 per pound and sells it for $5.70per pound. At the end of each business day, any remaining bluefish is sold to a producer of catfood for $2.40 per pound. Daily demand can be approximated by a normal distribution with amean of 80 pounds and a standard deviation of 10 pounds. What is the optimal stocking level?
The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15% of the price and its ordering cost at $90 per order. On a 360-day basis, about How much would be the number of orders to be placed in a year? approximately 10 orders in a yearA. approximately 12 orders in a yearB. approximately 8 orders in a yearC. approximately 4 orders in a yearD. approximately 16 orders in a year
Phillip F lamm's Computer Store in Texas sells a printer for $200. Demand is constant during the year, and annual demand is forecasted to be 600 units. Holding cost is $20 per unit per year, whereas the cost of ordering is $60 per order.Currently, the company is ordering 12 times per year (50 units each time). There are 250 working days per yea r, and the lead time is 10 days.a) Given the current policy of ordering 50 units at a time, what is the total of the annual ordering cost and the annual holding cost?b) If the company used the absolute best inventory policy, what would be the total of ordering and holding costs?c) What is the reorder point?