Problem 20-13 "periodic review system - similar to Alt-Cat 20.4* Dunstreet's Department Store would like to...
Dunstreet's Department Store would like to develop an inventory ordering policy of a 98 percent probability of not stocking out To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 3.900 per year. The store is open 365 days per year. Every three weeks (21 days) inventory is counted and a new order is placed. It takes 15 days for the sheets to be delivered. Standard deviation of...
Dunstreet's Department Store would like to develop an inventory ordering policy of a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 3,400 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 9 days for the sheets to be delivered. Standard deviation of...
Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability of not stocking out. To Wustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 3.400 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 12 days for the sheets to be delivered. Standard deviation of...
Dunstreet's Department Store would like to develop an inventory ordering policy with a 99 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 4,300 per year. The store is open 365 days per year. Every four weeks (28 days) inventory is counted and a new order is placed. It takes 12 days for the sheets to be delivered. Standard deviation of...
Dunstreets Department store would like to develop an inventory ordering policy of 95% probability of not stocking. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets Demand for white percale sheets is 5,000 per uear. The store is open 365 days per year. Every 2 weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheet to be delivered. Standard deviation of demand for the...
Palin’s Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). Annual demand 3,770 mufflers Ordering cost $ 50 per order Standard deviation of daily demand 6 mufflers per working day Service probability 83 % Item cost $ 28.00 per muffler Lead time 2...
Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). Annual demand Standard deviation of daily demand Item cost Annual holding cost Review period 2,750 mufflers 6 mufflers per working day $28.00 per muffler 22 % of item value 21 working days Ordering...
Annual demand for a product is 10,920 units; weekly demand is 210 units with a standard deviation of 40 units. The cost of placing an order is $155, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.70 per unit. a. To provide a 90 percent service probability, what must the reorder point be? (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations....
The manager at the local store of a national home improvement chain is studying their inventory system. He has chosen one high volume product as the first product to examine. The historical supply and demand data for this item has indicated a constant lead time of 16 days. Demand per day (d) is normally distributed with a mean demand of 2000 per day and standard deviation of 240 per day. He plans to set the in-stock probability (or service level)...
A local store sells toilet paper to people in the surrounding communities. The demand for the toilet paper has been increasing and management needs to ensure that enough rolls are available to meet the increasing demand. The daily demand for the toilet paper is 400 rolls. The store operates 250 days per year. The following information is also available about the product. The cost of each roll……………………….…..$2. Ordering costs………………………………..……$100 per order Annual holding costs per unit…………… 10% of the costs...