Supply Chain 14. A large hospital uses a certain intravenous solution that it maintains in inven-...
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...
need C, D, and F completed
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...
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...
Eagle Insurance is a large insurance company chain with a central inventory operation. The company’s fastest-moving inventory item has a demand of 80,000 units per year. The cost of each unit is $200, and the inventory carrying cost is $15 per unit per year. The average ordering cost is $60 per order. It takes about 2 days for an order to arrive. This is a corporate operation, and there are 250 working days per year. (Please show all work including...
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...
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...
E15-3 Mama Leone's Frozen Pizzas uses 50,000 units of cheese per year. Each unit costs $2.50. The ordering cost for the cheese is $250 per order, and its carrying cost is $0.50 per unit per year. Calculate the firm's economic order quantity (EOQ) for the cheese. Mama Leone's operates 250 days per year and maintains a minimum inventory level of 2 days' worth of cheese as a safety stock. If the lead time to receive orders of cheese is 3...
A sporting goods company has a distribution center that maintains inventory of fishing rods. The company uses continuous review policy. The fishing rods have the following demand, lead time, and cost characteristics: Average demand =100 units per day Desired cycle service level=91% Lead time = 3 days Standard deviation for demand during lead time = 41 What is the reorder point (ROP)? 341 300 329 355
periodic inventory system merchandise inven LO2 • P6-2A. Inventory Costing Methods-Periodic Method Tally Stores uses the periodic inventory for its merchandise inventory. The April 1 inventory for one of the items in the merchandise tory consisted of 120 units with a unit cost of $330. Transactions for this item during April follows: April 9 Purchased 40 units @ $345 per unit. 14 Sold 80 units @ $550 per unit. 23 Purchased 20 units @ $360 per unit. 29 Sold 40...
TEST Assignment 1 A computer-supply mail- order house has a memory chips in inventory that it sells to customers around the coutry. A Japanese manufacture supplies theitem using airfreigt. It has following characteristics:m Annual demand 1.200 units Leadtime Holding costs -25% per year Purchase price, delivered 75 USD per unit Ordering cost 25USD per unit - 1 week 1. Design a reorder point method of control for this item. Plot orders time diagramme. 2. What are the annual ordering and...