Loose Leaf for Operations Management in the Supply Chain: Decisions and Cases 7e
7th Edition
ISBN: 9781260151954
Author: SCHROEDER, Roger G
Publisher: McGraw-Hill Education
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Chapter 14, Problem 8P
An electronics retailer carries a particular cellular telephone with the following characteristics:
Average monthly sales = 120 units
Ordering cost = S25 per order
Carrying cost = 35 percent per year
Item cost = S300 per unit
Lead time = 4 days
Standard deviation of daily demand = .2 unit
Working days per year = 250
- a. Determine the EOQ.
- b. Calculate the reorder point for a 92 percent service level, assuming
normally distributed demand. - c. Design a Q system for this item.
- d. What happens to the reorder point when the lead time changes? What happens to the reorder point when the standard deviation of demand changes?
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An electronics retailer carries a particular cellular telephone with the following characteristics:Average monthly sales = 120 unitsOrdering cost = $25 per orderCarrying cost = 35 percent per yearItem cost = $300 per unitLead time = 4 daysStandard deviation of daily demand = .2 unitWorking days per year = 250a. Determine the EOQ.b. Calculate the reorder point for a 92 percent service level, assuming normally distributed demand.c. Design a Q system for this item.d. What happens to the reorder point when the lead time changes? What happens to the reorder point when the standard deviation of demand changes?
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Chapter 14 Solutions
Loose Leaf for Operations Management in the Supply Chain: Decisions and Cases 7e
Ch. 14.S - eXcel Suppose that for problem 1 in the chapter,...Ch. 14.S - Prob. 2PCh. 14.S - For problem 2 in the chapter, suppose the Grinell...Ch. 14.S - A producer of electronic parts wants to take...Ch. 14 - Identify the different types of inventories (raw...Ch. 14 - Why are stockout costs difficult to determine?...Ch. 14 - What is the difference between a requirements...Ch. 14 - Compare and contrast the management of finished...Ch. 14 - For a given service level, why does a P system...Ch. 14 - Under what circumstances might CPFR be useful, and...
Ch. 14 - Prob. 7DQCh. 14 - What is the appropriate role of inventory turnover...Ch. 14 - Suppose you are managing a chain of retail...Ch. 14 - The Always Fresh Grocery Store carries a...Ch. 14 - The Grinell Machine Shop makes a line of metal...Ch. 14 - The local Toyota dealer has to decide how many...Ch. 14 - Prob. 4PCh. 14 - The famous Widget Company sells widgets at the...Ch. 14 - Prob. 6PCh. 14 - Prob. 7PCh. 14 - An electronics retailer carries a particular...Ch. 14 - An electronics retailer carries a particular...Ch. 14 - The local Toyota dealer has to decide how many...Ch. 14 - The Suregrip Tire Company carries a certain type...Ch. 14 - The Suregrip Tire Company carries a certain type...Ch. 14 - eXcel 13. The Cover-up Drapery Company carries...Ch. 14 - Suppose you are the supplier of the Cover-up...
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