Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at...
Leaky Pipe, a local retailer of plumbing supplies, faces demand
for one of its SKUs at a constant rate of 30,000 units
per year. It costs Leaky Pipe $10 to process an order to
replenish stock and $1 per unit per year to carry the item
in stock. Stock is received 4 working days after an order is
placed. No backordering is allowed. Assume 300 working
days a year.
a. What is Leaky Pipe’s optimal order quantity?
b. What is the optimal number of orders per year?
c. What is the optimal interval (in working days) between
orders?
d. What is the demand during the lead time?
e. What is the reorder point?
f. What is the inventory position immediately after an order
has been placed?
Homework Answers
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Leaky Pipe, a local retailer of plumbing supplies, faces demand
for one of its SKUs at...
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Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUS at a constant rate of 18,700 units per year. It costs Leaky Pipe $15 to process placed. No backordering is allowed. Assume 250 working days a year. an order to replenish stock and $2.00 per unit per year to carry the item in stock. Stock is received 2 working days after an order is a. What is Leaky Pipe's optimal order quantity= 775 units b....
Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUs at...
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QUESTION 26 A local retailer purchased inventory from an overseas supplier and believes the assumptions of...
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Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of its SKUS at a constant rate of 18,700 units per year. It costs Leaky Pipe $15 to process placed. No backordering is allowed. Assume 250 working days a year. an order to replenish stock and $2.00 per unit per year to carry the item in stock. Stock is received 2 working days after an order is a. What is Leaky Pipe's optimal order quantity= 775 units b....
At Dot Com, a large retailer of popular books, demand is constant at 34,000 books per year. The cost of placing an order to replenish stock is $5, and the annual cost of holding is $2.00 per book. Stock is received 15 working days after an order has been placed. No backordering is allowed. Assume 325 working days a year. a. Dot Com's optimal order quantity is 1130 books. (Enter your response rounded to the nearest whole number.) b. The...
At Dot Com, a large retailer of popular books, demand is constant at 20,400 books per year. The cost of placing an order to replenish stock is $75, and the annual cost of holding is $5.00 per book. Stock is received 15 working days after an order has been placed. No backordering is allowed. Assume 250 working days a year. a. Dot Com's optimal order quantity is books. (Enter your response rounded to the nearest whole number.) b. The optimal...
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QUESTION 26 A local retailer purchased inventory from an overseas supplier and believes the assumptions of the EOQ model are met reasonably well. Data from their accountant show annual demand (D) =19,951 units, ordering cost (S) - $42 per order, and holding cost (11) - 54 per unit per year How many times per year will she replenish her inventory of this material? (or 'How many orders will she place in one year?) Demand 19,951 unit per year ordering cost...
Solve with Dynamic Programing
A retailer wishes to plan the purchase of a certain item for the next five months. Suppose that the demand in these months is known and given by: MonthDemand (units) Month Demand (units) 30 10 20 30 20 The retailer orders at the beginning of each month. Initially he has no units of the item. Any units left at the end of a month will be transferred to the next month, but at a cost of...
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