Demand for an item is constant at 40 units a week, and the economic order quantity is calculated to be 100 units. What is the reorder level if lead time is constant at 4 weeks. What is the effect of add some margin of safety and raising the reorder level by ten units? What happens if the lead time (a) falls to 2 weeks or (b) raises to 6 weeks?
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Demand for an item is constant at 40 units a week, and the economic order quantity is calculated to be 100 units. What is the reorder level if lead time is constant at 4 weeks. What is the effect of add some margin of safety and raising the reorder level by ten units? What happens if the lead time (a) falls to 2 weeks or (b) raises to 6 weeks?
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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.Anna Smith sells beauty supplies. Her annual demand for a particular skin lotion is 1,000 units. The cost of placing an order is $20, while the holding cost per unit per year is 10 percent of the cost. This item currently costs $10 if the order quantity is less than 300. For orders of 300 units or more, the cost falls to $9.80. To minimize total cost, how many units should Ivonne order each time she places an order? What is the minimum total cost?A regional service shop for a TV manufacturer keeps a stock of TV circuits. The purchasing lead time is three weeks, during which demand is normally distributed with N (300, 1600). A circuit costs $90 and sells for $150. Annual inventory-holding cost is taken to be 25 percent. Shortages are backordered at a fixed cost of $6.00 per unit short. The service shop uses the base stock approach to manage this item. Find the reorder point and the ordering policy. please help!!!!!
- 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 demand for a commodity is 40,000 units a year, at a steady rate. It costs $20 to place an order, and $0.40 to hold a unit for a year. Find the order size to minimize inventory costs, the number of orders placed each year, the length of the inventory cycle and the total costs of holding inventory for the year. What is the EOQ? What is the number of orders placed each year? What is the inventory cycle (length of time that the the order size will last)? in terms of weeks What is the total ordering & carrying costs at the EOQ level?Authentic Thai rattan chairs are delivered to Gary Schwartz's chain of retail stores, called The Kathmandu Shop, once a year. The reorder point, without safety stock, is 200 chairs. Carrying cost is $40 per unit per year, and the cost of a stockout is $70 per chair per year. Given the following demand probabilities during the lead time, how much safety stock should be carried? Demand During Lead Time Probability 0 0.2 100 0.2 200 0.2 300 0.2 400 0.2 The optimal quantity of safety stock which minimizes expected total cost is _ units (enter response as a whole number).
- Please do not give solution in image format thanku 12. Vintage-looking art replicas are delivered to an art store once a year. The reorder point for the pieces without safety stock is 200 pieces. The carrying cost is $30 per unit per year, and the cost of a stockout is $70 per chair per year. Given the following demand probabilities during the lead time, how much safety stock should be carried? Demand: 0 100 200 300 400 Probability: 0.2 0.2 0.2 0.2 0.2Demand for an item is constant at 1,000 units a year. Unit cost is £50, reorder cost is £100, holding cost is 25 per cent of value a year and no shortages are allowed. Describe an optimal inventory policy for the item. What order size will give a variable cost within 10 per cent of optimal? What is the cost if suppliers only make deliveries of 200 units?Do all work in Excel with Formulas An office supply store open 5 days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant at 250 boxes and when orders are placed, then entire shipment arrives at once. The cost per box is $22 and the inventory holding cost is 30%. Orders are placed at a cost of $40 each, including preparation time and communication charges, and the lead time is 2 days. a. Find the optimal order quantity. b. What is the reorder point? c. How often should an order be placed? d. What is the cycle time?
- Lead time for one of your fastest-moving products is deterministic and equal to 21 days. Demand during this period is normally distributed. The average demand equals 100 units per day. What would be the reorder point under the (Q, R) policy with the required service level being 70%? A Less than 2100 units B Equal to 2100 units C More than 2100 units D We do not have enough information to decideThe demand rate for a product is 100 units per month. Each time an order is placed, a fixed cost of $40 is incurred. The purchase price for the product is $12 and its selling price is $20. The inventory holding cost rate is 20% per year. If the order lead time is 4 months, what is the reorder level of the (s, Q) policy?A regional service shop for a TV manufacturer keeps a stock of TV circuits. The purchasing lead time is three weeks, during which demand is normally distributed with N (300, 1600). A circuit costs $90 and sells for $150. Annual inventory-holding cost is taken to be 25 percent. Shortages are backordered at a fixed cost of $6.00 per unit short. The service shop uses the base stock approach to manage this item. Find the reorder point and the ordering policy.