Demand during lead time for one brand of TV is normallydistributed with a mean of 36 TVs and a standard deviationof 15 TYs. What safety stock should be carried for DennisYu's Appliance Outlet to provide a 90% service level? What is theappropriate reorder point?
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| Demand during lead time for one brand of TV is normally distributed with a mean of 36 TVs and a standard deviation of 15 TYs. What safety stock should be carried for Dennis Yu's Appliance Outlet to provide a 90% service level? What is the appropriate reorder point? |
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- Demand during lead time for one brand of TV is normally distributed with a mean of 36 TVs and a standard deviation of 15 TVs. What safety stock should be carried for Dennis Yu's Appliance Outlet to provide a 90% service level? What is the appropriate reorder point? Use a Z standard deviation table as well What safety stock should be carried for a 90% service level? Safety stock =units (round your response to the nearest whole number). What is the appropriate reorder point? Reorder Point = unitsBarbara Flynn is in charge of maintaining hos-pital supplies at General Hospital. During the past year, the mean lead time demand for bandage BX-5 was 60 (and wasnormally distributed). Furthermore, the standard deviation forBX-5 was 7. Ms. Flynn would like to maintain a 90% service level.a) What safety stock level do you recommend for BX-5?b) What is the appropriate reorder point?Barbara Flynn is in charge of maintaining hospital supplies at General Hospital. During the past year, themean lead time demand for bandage BX-5 was 60 (and wasnormally distributed). Furthermore, the standard deviationfor BX-5 was 7. Ms. Flynn would like to maintain a 90%service level. a) What safety stock level do you recommend for BX-5?b) What is the appropriate reorder point?
- Demand for a product is relatively constant at 5 units per day. Lead time for this product is normally distributed with a mean of 20 days and a standard deviation of 4 days. (a) What reorder point provides an 80 percent service level? (b) What reorder point provides a 90 percent service level? (c) If the lead time standard deviation can be reduced from 4 days to 1, what reorder point now provides 90 percent service? How much is safety stock reduced by this change?Polymorph Promotions finds that demand for an item is Normally distributed with a mean of 2,000 units a year and a standard deviation of 400 units. Unit cost is $100, reorder cost is $200, holding cost is 20% of value a year and lead time is fixed at 3 weeks. Compute the (s,Q) ordering policy that gives a 95% service level and the annual cost of the safety stock.Sam’s Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags.Demand = 90 bags/weekOrder cost = $54/orderAnnual holding cost = 27 percent of costDesired cycle@service level = 80 percentLead time = 3 weeks 118 working days2Standard deviation of weekly demand = 15 bagsCurrent on-hand inventory is 320 bags, with no open orders or backorders.a. What is the EOQ? What would be the average time between orders (in weeks)?b. What should R be?c. An inventory withdrawal of 10 bags was just made. Is it time to reorder?d. The store currently uses a lot size of 500 bags (i.e., Q = 500). What is the annual holding cost of this policy? Annual ordering cost? Without calculating the EOQ, how can you conclude from these two calculations that the current lot size is too large?e. What would be the annual cost saved by shifting from the 500-bag lot size to the…
- An electronics retailer carries a particular cellular telephone with the following characteristics:Average monthly sales = 120 unitsOrdering cost = $25 per orderCarrying cost = 35 percent per yearItem cost = $300 per unitLead time = 4 daysStandard deviation of daily demand = .2 unitWorking days per year = 250a. Determine the EOQ.b. Calculate the reorder point for a 92 percent service level, assuming normally distributed demand.c. Design a Q system for this item.d. What happens to the reorder point when the lead time changes? What happens to the reorder point when the standard deviation of demand changes?Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory system. It purchaseskitty litter for $10.75 per bag. The following information isavailable about these bags.Demand = 95 bags>weekOrder cost = $58>orderAnnual holding cost = 25 percent of costDesired cycle@service level = 90 percentLead time = 4 weeks 128 working days2Standard deviation of weekly demand = 16 bagsCurrent on-hand inventory is 315 bags, with no open ordersor backorders.a. What is the EOQ? What would be the average time betweenorders (in weeks)?b. What should R be?c. An inventory withdrawal of 10 bags was just made. Is ittime to reorder?d. The store currently uses a lot size of 490 bags (i.e.,Q = 490). What is the annual holding cost of this policy?Annual ordering cost? Without calculating the EOQ, howcan you conclude from these two calculations that thecurrent lot size is too large?e. What would be the annual cost saved by shifting from the490-bag lot size to the EOQ?Sam’s Cat Hotel operates 52 weeks per year, 7 days per week,and uses a continuous review inventory system. It purchaseskitty litter for $10.75 per bag. The following information isavailable about these bags.Demand = 95 bags>weekOrder cost = $58>orderAnnual holding cost = 25 percent of costDesired cycle@service level = 90 percentLead time = 4 weeks 128 working days2Standard deviation of weekly demand = 16 bagsCurrent on-hand inventory is 315 bags, with no open ordersor backorders. a. Suppose that the weekly demand forecast of 95 bags isincorrect and actual demand averages only 65 bags perweek. How much higher will total costs be, owing to thedistorted EOQ caused by this forecast error?b. Suppose that actual demand is 65 bags but that orderingcosts are cut to only $10 by using the Internet to automateorder placing. However, the buyer does not tell anyone,and the EOQ is not adjusted to reflect this reduction in S.How much higher will total costs be, compared to whatthey could be if…
- Part 1 Sam's Pet Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $13.00 per bag. The following information is available about these bags: Demandequals=75 bags/week Orde costequals=$55.00/order Annual holding costequals=35 percent of cost Desired cycle-service levelequals=80 percent Lead timeequals=4 weeks (24 working days) Standard deviation of weekly demand equals=15 bags Current on-hand inventory is 320 bags, with no open orders or backorders. Part 2 a. Suppose that the weekly demand forecast of 75 bags is incorrect and actual demand averages only 50 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be ___ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)Please do not give solution in image formate thanku. A health and nutrition store stocks a multivitamin with an annual demand of 1,000 bottles has Co = $24.50 and Ch = $9. The demand exhibits some variability such that the lead-time demand follows a normal probability distribution with ? = 25 and ? = 5. What is the recommended order quantity? (Round your answer to the nearest integer.) What are the reorder point and safety stock if the store desires at most a 6% probability of stock-out on any given order cycle? (Round your answers to the nearest integer.) reorder point ? safety stock? If a manager sets the reorder point at 30, what is the probability of a stock-out on any given order cycle? (Round your answer to four decimal places.) How many times would you expect a stock-out during the year if this reorder point were used? (Round your answer to the nearest integer.)1. Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags. Refer to the standard normal table for z-values. ≻Demand = 100 bags/week ≻Order cost = $58/order ≻Annual holding cost = 29 percent of cost ≻Desired cycle-service level=92 percent ≻Lead time = 1 week(s) (5 working days) ≻Standard deviation of weekly demand = 18 bags ≻Current on-hand inventory is 300 bags, with no open orders or backorders. a. What should R be? The reorder point is what? bags. (Enter your response rounded to the nearest whole number.)