The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is consdays. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average.is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place anTime left 1:45:28order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.Find the economic order quantity (EOQ).O a. 1788O b. 346O c. 36Od. 632The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at fivedays. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demandis 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal) It costs $40 to place anorder, and the annual holding cost is 30% of the inventory value. The supplier charges 58,00 per unitWhat are the expected value and standard deviation of demand during lead time?a. 40, 7.6Ⓒb. 200, 16.99OC40, 16.99

As per guidelines solving first question. Annual demand = Daily demand, d X 300 = 40 x 300 = 12000…

Answered: The manager of a local retail store 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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A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics: > Demand (D) = 2,000 units/year > Demand is normally distributed > Standard deviation of weekly demand = 2 units > Ordering cost = $30/order > Annual holding cost (H) = $5.00/unit > Desired cycle-service level = 85% > Lead time (L) = 4 weeks Refer to the standard normal table for z-values. a. If the company uses a periodic review system, P should be 3.87 weeks. (Enter your response rounded to the nearest whole number.) T should be units. (Enter your response rounded to the nearest whole number.)
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