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: ------------------------------------------------------------ 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....
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...
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...
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...
Using a computerized Inventory Management System, a Paint Supply Store franchise continuously monitors the inventory of all the paint located at each of their 15 stores and their distribution warehouse. The Paint Supply Store franchise sells an average of 64 gallons of Green Paint every week (for 52 weeks per year). They purchase Green Paint from their supplier at a price of $3.50 per gallon. [The company does not hold Safety Stock] It takes 2.25 weeks to receive an order...