ZuoTi.Pro
Question

Question 29 3 pts Annual demand for an item is 13,000 units with the cost per unit at $243. The holding rate is 10% and the o

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer would be 8

Please find below table useful to compute desired results: -

A B 1 Annual Demand for an item 13000 Formula Used: - 2 Number of days in a year 260 3 Lead Time 4 Standard Deviation of dail

End results would be as follows: -

А 1 Annual Demand for an item 2 Number of days in a year 3 Lead Time 4 Standard Deviation of daily demand 5 Average Daily Dem

Therefore the required Safety Stock would be 8. (after rounding off)

0 0
Add a comment
Know the answer?
Add Answer to:
Question 29 3 pts Annual demand for an item is 13,000 units with the cost per...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The annual demand for a product is 64,000 items and the holding cost is $0.50 item/year....

    The annual demand for a product is 64,000 items and the holding cost is $0.50 item/year. 1) What will be the Economic Order Quantity and the total annual cost if the cost of placing each orde is $250? b) If the company operates 300 days per year and the lead time is 9 days, find the recorder point assuming that the daily demand is constant c) Now suppose that the daily demand is Normal with mean as implied from the...

  • Compute the safety stock (S.S.) and reorder point (ROP) for the following situation: Annual Demand =...

    Compute the safety stock (S.S.) and reorder point (ROP) for the following situation: Annual Demand = 6570 units Unit Price = $11 and no quantity discounts Ordering Cost = $25/order Holding Cost = $1.50/unit Lead Time = 5 days Desired Customer Service Level = 97.5% Assume 365 days/year and that demand and lead time are constant. Safety Stock = 10; ROP = 90 Safety Stock = 0; ROP = 90 Safety Stock = 5; ROP = 150 Safety Stock =...

  • Item Cost: $8.00 Order Cost: $287 Annual Holding Cost: 33% of item cost Annual Demand: 27,400...

    Item Cost: $8.00 Order Cost: $287 Annual Holding Cost: 33% of item cost Annual Demand: 27,400 Average Weekly Demand: 548 Std. Dev. of Weekly Demand: 20/week Lead Time: 3 weeks Service Probability: 99% Previously found Info: Optimal order quantity = 2441 units. Reorder point = 1725 units. Annual Holding Cost: $3222.12. Annual Order Cost: $3221.55. Assume a price break of $55 per order was offered for purchase quantities of 2,500 or more units per order. If you took advantage of...

  • 5 points Consider an item with item cost 100. The cost per order is 75 and...

    5 points Consider an item with item cost 100. The cost per order is 75 and holding cost is 30% of the item cost. Daly demand is 10 units. The supplier takes 12 days to deliver the products. Assume that demand is constant. Also assume that working days in a year are 300 1. What shall be economic order quantity? 2. What shall be reorder point to run this inventory system? 3- What shall be total annual cost to run...

  • The Walmart distribution center has a constant demand for SKU #T35M of 10 units per day....

    The Walmart distribution center has a constant demand for SKU #T35M of 10 units per day. Walmart is very particular and wishes a 98% service level. The lead time is normally distributed with a mean of 4 days and a standard deviation of 2 days. Holding cost is $2 per unit per year. A) What is the standard deviation of demand for the lead time? B) How much safety stock should be carried and what is the reorder point? C)...

  • An automobile manufacturer stocks a certain inventory item. The daily demand for the inventory item is...

    An automobile manufacturer stocks a certain inventory item. The daily demand for the inventory item is 20 units. The company estimates its annual holding cost for this item to be $10 per unit. The cost to place and process an order from the supplier is $200. The company operates 300 days per year, and the lead time to receive an order from the supplier is 3 working days on average. (a)    Find the economic order quantity. (b)    Find...

  • Annual demand for an item is 1,250,000 units. The holding cost rate is 20% of the...

    Annual demand for an item is 1,250,000 units. The holding cost rate is 20% of the item cost. Ordering costs are $4 per order. Quantity discounts are available according to the schedule below: Quantity Price per Unit ($) 1-999 1.15 1,000-2,499 1.10 2,500-4,999 1.08 5,000+ 1.05 What is the total annual cost of your policy? ~$1,313,949 ~$1,351,540 ~$1,377,276 ~$1,422,620 Assume 52 5-day weeks per year. If the lead-time is 1 weeks, what should the reorder point be? If necessary, round...

  • Ye' Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like...

    Ye' Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like to reduce her oak lumber inventory by determining the optimal number of oak boards to order. the annual demand averages 50,000 boards and the order cost is $15.00 per order. Holding cost is estimated to be 10%. the purchase cost of each board is $6.00. The standard deviation of daily demand is 4 boards. The standard deviation of lead time is 2.0 days. Assume...

  • 4) S uppose that lead-time demand is normally distributed with a mean of 100 units and...

    4) S uppose that lead-time demand is normally distributed with a mean of 100 units and a standard deviation of 20 units, If the firm wants to maintain 92% service Jevel, what should the reorder point be? 2-1.88 Pop-137.6units 5) We use 1,500 per year of a certain subassembly that has an annual holding cost of $45 placed costs us $150. We operate 300 days per year and have found that an order must be placed with our supplier 6...

  • If annual demand is 24,000 units, and the order quantity is 3,000 units, which of the...

    If annual demand is 24,000 units, and the order quantity is 3,000 units, which of the following accurately describes the decision-making environment? a. The annual number of order placements will be 8, and average inventory levels will be 1,500 b. The annual number of order placements will be 8, and average inventory levels will be 3,000 c. The annual number of order placements will be 12, and average inventory levels will be 12,000 d. The annual number of order placements...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT