The average weekly demand of an item is 200 units, and the standard deviation ofweekly demand is 150. The inventory manager places orders of 750 units each time,and the replenishment lead time is 2 weeks. Management says it will tolerate onlyone stockout per two years. How much safety stock should be carried? Round youranswer to the nearest integer.Question 2What is the average inventory per year? Round your answer to the nearest integer.Question 3What is the order point? Round your answer to the nearest integer. Suppose now inventory is reviewed every week, safety stock is 300, and at time ofreview the inventory level is 400. What should the order quantity be?

Answered: The average weekly demand of an item is…

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...

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For a particular SKU, the lead time is 6 weeks, the average demand is 90 units aweek, and safety stock is 200 units. What is the average inventory if 10 weeks’ supply is ordered at one time? What is the order point?
20. The expected annual usage of a particular material is 540,000 units, and the standard order size is 36,000 units The invoice cost of each unit is P900, and the ordering cost per order is P240. Assuming the company does not maintain safety stock. What is the average inventory?
The expected annual usage of a particular material is 540,000 units, and the standard order size is 36,000 units. The invoice cost of each unit is P900, and the ordering cost per order is P240. Assuming the company does not maintain safety stock. a. What is the average inventory? b. What is the ordering cost?
For a particular SKU, the lead time is 4 weeks, the average demand is 150 units perweek, and safety stock is 100 units. What is the average inventory if 1600 units areordered at one time? What is the order point?
What is the total inventory cost if annual demand is 75,000 units per year, the order quantity is 2,400 units, the holding cost is $0.375 per unit, and the ordering costs are $14.40?
21. The expected annual usage of a particular material is 540,000 units, and the standard order size is 36,000 units The invoice cost of each unit is P900, and the ordering cost per order is P240. Assuming the company does not maintain safety stock. What is the ordering cost?
Given 150 units of beginning inventory, a lead time of oneperiod, an ordering cost of $400 per order, and a holdingcost of $2 per unit per period, determine which lot sizing technique would result in the lowest total cost for the fol-lowing demand data. Period 1 2 3 4 5 6 7 8Gross Requirements 100 90 85 70 150 200 300 250
The Star Equipment Company purchases 54,000 bearing assemblies each year at a unit cost of $40.00. The holding cost is $9.00 per unit per year, and the ordering cost is $20.00. What is the economic order quantity? How many orders should be placed per year? If the lead time is one (01) month, what is the re-order point for the assemblies?
39 Item X Is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,700 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more of item X, it costs $20. a. Whenever item X is ordered, what should the order size be? Note: Round your answer to the nearest whole number. b. What is the annual cost for ordering item X? Note: Round your order quantity to the nearest whole number and your final answer to 2 decimal places.
we know that blue company's lead time L is one week and the demand rate is 100 units per week. compute the re-order point.
How do each of the following influence inventory lot-size decisions?a. Lumpy demand.b. Minimum orders.c. Transportation costs.d. Multiples.
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?

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