The reorder level. Introduction : Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

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Answer 1

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Chapter 12, Problem 32P

a)

Summary Introduction

To determine: The reorder level.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

b)

Summary Introduction

To determine: The order quantity for P34.

c)

Summary Introduction

To determine: The order quantity for P35.

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Demand for an item is at the rate of 200 units per day. Stock will be replenished immediately upon order. Each order made will be charged a preparation cost of RM100.00, while a unit of goods that is kept in stock for a day will be charged a cost of RM0.50. Shortages are allowed to occur at a cost of RM3.00 for each unit of goods that are reduced for a day. Determine(i) the optimum order quantity(ii) the maximum allowable deficit size.

A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .99. The order interval is 12 days, and lead time is 4 days. Average demand for one item is 63 units per day, and the standard deviation of demand is 6 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the following table. Use Table. Cycle On Hand 1 38 2 10 3 93 Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number) Cycle Units 1 1019 Numeric ResponseEdit Unavailable. 1019 incorrect. 2 1047 Numeric ResponseEdit Unavailable. 1047 incorrect. 3 964 Numeric ResponseEdit Unavailable. 964 incorrect.

A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a servicelevel of .98. The order interval is 14 days, and lead time is 2 days. Average demand for one itemis 40 units per day, and the standard deviation of demand is 3 units per day. Given the on-handinventory at the reorder time for each order cycle shown in the following table, determine theorder quantities for cycles 1, 2, and 3.Cycle On Hand1 422 83 103

Answer 2

Question

Chapter 12, Problem 32P

a)

Summary Introduction

To determine: The reorder level.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

b)

Summary Introduction

To determine: The order quantity for P34.

c)

Summary Introduction

To determine: The order quantity for P35.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 32P

a)

Summary Introduction

To determine: The reorder level.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

b)

Summary Introduction

To determine: The order quantity for P34.

c)

Summary Introduction

To determine: The order quantity for P35.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 32P

a)

Summary Introduction

To determine: The reorder level.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

b)

Summary Introduction

To determine: The order quantity for P34.

c)

Summary Introduction

To determine: The order quantity for P35.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 12, Problem 32P

a)

Summary Introduction

To determine: The reorder level.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

b)

Summary Introduction

To determine: The order quantity for P34.

c)

Summary Introduction

To determine: The order quantity for P35.

Answer 6

Chapter 12, Problem 32P

a)

Summary Introduction

To determine: The reorder level.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

Answer 7

Chapter 12, Problem 32P

a)

Summary Introduction

To determine: The reorder level.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

Answer 8

b)

Summary Introduction

To determine: The order quantity for P34.

Answer 9

b)

Summary Introduction

To determine: The order quantity for P34.

Answer 10

c)

Summary Introduction

To determine: The order quantity for P35.

Answer 11

c)

Summary Introduction

To determine: The order quantity for P35.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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The reorder level. Introduction : Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

Solution Summary: The author explains the reorder level for P34, which is 132 units, based on a z-factor table.

Concept explainers

Videos

To determine: The reorder level.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

To determine: The order quantity for P34.

To determine: The order quantity for P35.

Want to see the full answer?

Chapter 12 Solutions

The reorder level. Introduction : Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

Solution Summary: The author explains the reorder level for P34, which is 132 units, based on a z-factor table.

Concept explainers

Videos

To determine: The reorder level. Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.

To determine: The order quantity for P34.

To determine: The order quantity for P35.

Want to see the full answer?

Chapter 12 Solutions

To determine: The reorder level.

Introduction: Inventory is a stock or store of goods. Every company store lots of goods as inventory which will be used during replenishment periods. Management of inventory is so much essential to manage cost and also to reduce cost.