One 100 units per day. Safety stock is dimensioned to meet 95% of demand requirements considered normally distributed. According to the company's internal procedures, the stock of this item is reviewed every 20 days, with an average replacement time of 16 days. The materials manager raised the following costs, taking into account that the business year is 360 days: the cost of owning inventory is R$1.00 per unit per year, and the cost of an order is R$1,250.00 per order. Two systems are being examined for inventory control of this item: “P” or periodicity system and “Q” or fixed quantity system. The stock position of this item on the indicated day shows the existence of 8,500 units. Considering the above data, the question is: The. For system P, considering that the stock review is carried out on the day, what quantity defines the maximum stock?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

One 100 units per day. Safety stock is dimensioned to meet 95% of demand requirements considered normally distributed. According to the company's internal procedures, the stock of this item is reviewed every 20 days, with an average replacement time of 16 days. The materials manager raised the following costs, taking into account that the business year is 360 days: the cost of owning inventory is R$1.00 per unit per year, and the cost of an order is R$1,250.00 per order. Two systems are being examined for inventory control of this item: “P” or periodicity system and “Q” or fixed quantity system. The stock position of this item on the indicated day shows the existence of 8,500 units. Considering the above data, the question is: The. For system P, considering that the stock review is carried out on the day, what quantity defines the maximum stock?

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.