


need C, D, and F completed Use the Continuous Inventory Model and the data below to...
Use the Continuous Inventory Model and the data below to answer these six questions. Forecast of demanda = 36,000 units per week Forecast error, std. dev. = 800 units per week Lead time = 2.5 weeks Lead time error, std. dev = 1.2 weeks Carrying cost = 20% per year Purchase price, delivered = $65 per unit Replenishment order cost = $2,000 per order Stockout cost - $2 per unit EOQ = 24,000 units In-stock Probability during the lead time...
Use the following information to answer questions 17-20.
A large hospital uses a certain intravenous solution that it
maintains in inventory. Assume the hospital uses reorder point
method to control the inventory of this item. Pertinent data about
this item are as follows:
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Forecast of demanda = 1,000 units per week
Forecast errora, std. dev. =100 units per week
Lead time = 4 weeks
Carrying cost = 25 % per year
Purchase price, delivered = $52 per unit
Replenishment...
Sam's Cat Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $12.50 per bag. The following information is available about these bags: Demand 80 bags/week Order cost $58.00/order Annual holding cost 40 percent of cost Desired cycle-service level 80 percent Lead time 4 weeks (24 working days) Standard deviation of weekly demand 15 bags Current on-hand inventory is 320 bags, with no open orders or backorders. a....
1. Basic EOQ Question: The inventory manager of ABC, Ltd., wants to order flour for its bakery in a cost effective manner. The bakery uses an average of 12,000 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $40 per order. Annual carrying costs are $37.50 per bag. REQUIRED: A. Determine the economic order quanity. B. What is the average number of bags on hand? C How many orders will there be per...
Bob’s apple store utilizes a continuous review system. Current on had inventory is 295 bags of apples, with no open orders or backorders. He buys apples year round, 52 weeks a year, 5 days a week. He buys apples for $10.20 a bag. The following information is available about these bags of apples: Demand = 80 bags/week Order cost = $48/order Annual Holding cost = 32 percent of the cost of a bag Desired cycle-service level = 87 percent Lead...
Sam's Cat Hotel operates 52 weeks per year and uses a continuous review inventory system. It purchases kitty litter for $10.75 per bag. The following information is available about these bags. Demand = 85 bags/week Order cost = $57/order Annual holding cost = 26% of cost per bag Desired cycle-service level = 90% Lead-time = 2 weeks Standard deviation of weekly demand = 18 bags What is the economic order quantity (EOQ) for kitty litter? What would be the average...
Petty House operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system (i.e. Q system). It purchases kitty litter for $ 10 per bag. The following information is available about these bags. Demand = 102 bags/ week Order cost = $ 49/ order Annual holding cost = 25 percent of cogs Desired cycle service level = 80 percent Lead time = 3 weeks Standard deviation of weekly demand = 15 bags Current on-hand inventory...
A construction equipment dealer is facing a difficult inventory problem. Low inventory turnover is squeezing profit margins and causing cash-flow problems. One of the top-selling SKUs in the storage is a special small appliance. Sales are 18 units per week, and the supplier charges $60 per unit. The cost of placing an order with the supplier is $45. Annual holding cost is 25 percent of a product’s value, and the shop operates 52 weeks per year. Management chose a 390-unit...
Sam's Cat Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags: follows≻Demandequals=85 bags/week follows≻Order cost=$50.00/order follows≻Annual holding costequals=35 percent of cost follows≻Desired cycle-service levelequals=80 percent follows≻Lead time=4 weeks (24 working days) follows≻Standard deviation of weekly demand= 15 bags follows≻Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand...
Daily sales 325 units Std. deviation of daily demand 39 Cost to place an order $30 Freight cost $250 Avg. Inventory (last 12 months) 2,750 units Cost of 1 unit of inventory $125 Cost of Goods Sold $14,828,125 Selling price of 1 unit $250 Avg. replenishment cycle 11 days Average inventory value $343,750 Re-stock fee is $55 Cost of capital = 22.5% Inventory Risk = 1.5% Storage space 5.5% =0.75% Insurance Current number of warehouses = 24 Prime interest rate...