SRU JIC nas a demand that is uted during the lead time, with a mean of 500 units and standard deviation of 10. If Jasper cannot have stockouts in more than 5% of the time in any order, how much safety stock should be maintained and at what reorder point?
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- The demand for an electronic component is normally distributed with an average daily demand of 500 units and a standard deviation of 50. The lead-time for the component is 9 days. If a service level of 95% is desired then the company’s reorder point for this component is approximately (Choose the closest value) Group of answer choices 4,627units 3,785 units 4,500 units 4,747 units1. The KIKO LTDA company manufactures sporting goods. Its monthly demand is 1000 units and each week it produces 923 units. The cost of each production run is $ 100 and the holding of each sporting item is 86 cents per week. The company works 250 business days in the year and the supplies it requires have a delivery time of 6 business days. With this information, it is requested to establish inventory policies that answer the following questions: a. The economic quantity to be produced. b. The reorder point c. The total annual cost of inventory d. The cycle time e. Number of runs per year f. Duration of a production run plz answer 'e' and 'f' part1. The KIKO LTDA company manufactures sporting goods. Its monthly demand is 1000 units and each week it produces 923 units. The cost of each production run is $ 100 and the holding of each sporting item is 86 cents per week. The company works 250 business days in the year and the supplies it requires have a delivery time of 6 business days. With this information, it is requested to establish inventory policies that answer the following questions: a. The economic quantity to be produced. b. The reorder point c. The total annual cost of inventory d. The cycle time e. Number of runs per year f. Duration of a production run
- Hal Itosis is a candy wholesaler. He purchases cases of Altoids mints from a distributor at $20 each and pays a fixed $2,420 shipping and handling charge per order. The total lead time from the distributor is 3 weeks. Assume an annual rate of 30% for inventory carrying charges and 50 weeks per year. Weekly demand is normally distributed with a mean of 3,000 cases and a standard deviation of 124 cases. Assume full backorders. What is the optimal order quantity? Suppose that Hal Itosis' optimal service level is 99% What is the optimal reorder point?In many respects, the food inventory decision for eachCelebrity cruise matches the single-period inventory modeldescribed in this chapter. Consider the decision about chicken.Suppose that Celebrity purchases chicken in bulk for $0.80 perpound, and any chicken left over after a cruise is donated tolocal food banks. Management estimates that a shortage penaltyof $1.00 per pound is incurred due to lost customer goodwillfrom unsatisfied demand. If chicken demand for a 7-daycruise is normally distributed with a mean of 3,000 pounds anda standard deviation of 200 pounds, how many pounds shouldbe brought onto the ship?The demand for a clothing brand is shown in the table below. The cost per order is about $4000. Cost of each unit of clothing = $5. Carrying cost percentage = 25% per item per 5 months. The analysis period = 5 month duration. Month Demand 1 400 2 300 3 200 4 400 5 500 a. Using this data, compute the solutions using the Lot for Lot and Periodic Order Quantity heuristics? Which of these heuristics would perform better and why? b. Assuming that the demand follows a normal distribution with the mean and variance from the data given above, determine the optimal order should be greater or lesser than the single period EOQ model.
- Surge Electric uses 4,000 toggle switches a year. Switches are priced as follows: 1 to 499, 90cents each; 500 to 999, 85 cents each; and 1,000 or more, 80 cents each. It costs approximately$30 to prepare an order and receive it, and carrying costs are 40 percent of purchase price perunit on an annual basis. Determine the optimal order quantity and the total annual cost.A gourmet coffe e shop in downtown San Francisco is open 200 days a year and sell s an average of 75 pounds of Kona coffee bea ns a day. (Demand can be assumed to be distributed normally, with a standard deviation of 15 pounds per day.) After ordering (fixed cost = $16 per order), beans are a lways shipped from Hawaii within exactly 4 days. Per-pound annual holding costs for the beans are $3.a) What is the economic order quantity (EOQ) for Kona coffee beans? b) What are the total annual holding costs of stock for Kona co!Tee beans?c) What are the total annual ordering costs for Kona co!Tee beans?d) Assume that management has specified that no more than a 1% risk during stockout is acceptable. What should the reorder point (ROP) be?c) What is the safety stock needed to attain a 1% risk of stockout during lead time?f) What is the annual holding cost of maintaining the level of safety stock needed to support a I% risk?g) If management…An online footwear firm Shoe-n-co has four regional warehouses. Demand at each warehouse is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000. Annual holding cost is 25%, and each unit of Prancs rubber shoes costs the company $10. Each order incurs an ordering cost of $1,000 (primarily from fixed transportation cost), and lead time is 1 week. The company wants the probability of stocking out to be no more than 5%. Assume 50 working weeks per year. What is the average inventory held at each warehouse? What is the annual inventory cost (holding + ordering) for Shoe-n-co? On average, how long does a unit of product spend in the warehouse before being sold? .. Little's law, maybe?
- An online footwear firm Shoe-n-co has four regional warehouses. Demand at each warehouse is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000. Annual holding cost is 25%, and each unit of Prancs rubber shoes costs the company $10. Each order incurs an ordering cost of $1,000 (primarily from fixed transportation cost), and lead time is 1 week. The company wants the probability of stocking out to be no more than 5%. Assume 50 working weeks per year. Suppose that Shoe-n-co follows a periodic review policy with a review period of 2 weeks. Recall that the firm has four regional warehouses with demand at each warehouse that is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000. Further, annual holding cost is 25%, and each unit of Prancs rubber shoes costs the company $10. Replenishment lead time is 1 week. The company wants a service level of 95%. Assume 50 working weeks per year. What is the annual…An online footwear firm Shoe-n-co has four regional warehouses. Demand at each warehouse is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000. Annual holding cost is 25%, and each unit of Prancs rubber shoes costs the company $10. Each order incurs an ordering cost of $1,000 (primarily from fixed transportation cost), and lead time is 1 week. The company wants the probability of stocking out to be no more than 5%. Assume 50 working weeks per year. Suppose that Shoe-n-co follows a periodic review policy with a review period of 2 weeks. Recall that the firm has four regional warehouses with demand at each warehouse that is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000. Further, annual holding cost is 25%, and each unit of Prancs rubber shoes costs the company $10. Replenishment lead time is 1 week. The company wants a service level of 95%. Assume 50 working weeks per year. Assuming that each…An online footwear firm Shoe-n-co has four regional warehouses. Demand at each warehouse is normally distributed with a mean of 10,000 per week and a standard deviation of 2,000. Annual holding cost is 25%, and each unit of Prancs rubber shoes costs the company $10. Each order incurs an ordering cost of $1,000 (primarily from fixed transportation cost), and lead time is 1 week. The company wants the probability of stocking out to be no more than 5%. Assume 50 working weeks per year. Assuming that each warehouse operates independently, calculate the ROP parameter of the optimal continuous review policy. Assuming that each warehouse operates independently, calculate the Q parameter of the optimal continuous review policy. How much safety stock does each warehouse have?