Lowes keeps rock walls in stock for their swing sets in their store. It sells approximately...
Lowes keeps rock walls in stock for their swing sets in their store. It sells approximately 2000 walls per year. Each wall costs $40 and the ordering cost is $12 per wall. The holding cost is $8 per wall. It takes one week for an order to arrive. Weekly demand is 40 walls with a standard deviation of 10 walls. Lowes would like to satisfy 85% of their customers who order this wall.
A) What is the economic order quantity for Lowes to order?
B) What is the reorder point?
C) How many customers will be backordered each year?
D) How many customers will be backordered each order?
E) Write a paragraph to explain the above numbers.
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Lowes keeps rock walls in stock for their swing sets in their
store. It sells approximately...
Consider a distributor of TV sets that orders from a manufacturer and sells to retailers. The...
Consider a distributor of TV sets that orders from a manufacturer and sells to retailers. The distributor is trying to set an inventory policy for one of the TV models she sells. Assume that whenever the distributor places an order for this TV set, there is a fixed ordering cost of $500. The distributor buys this TV set for $250. The annual inventory holding cost for this TV set is 18% percent of the product cost. Replenishment time is four...
menu iterm. The pizza is ordered frozen from a local pizza establishment and baked at the...
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Exon Revrew Department of Accounting, Finance & Economics Bowie State University ECON 483 Spring 2018 In-Class...
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) The demand during the lead time is normally distributed with a méan of 40 and...
) The demand during the lead time is normally distributed with a méan of 40 and a standard deviation of 4. If they have calculated a reorder point of 46.60 units, what service level are they assuming? 9505 Service leve 2) The annual demand for a product has been projected at 2,000 units. This demand is assumed constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent purchase cost. The purchase cost...
A local store sells toilet paper to people in the surrounding communities. The demand for the...
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Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 390 units. Ordering cost is $49; holding cost is $5 per unit per year.a) To minimize the total cost, how many units should be ordered each time an order is placed?
1. (12-8) Jacqueline’s Sleep store sells water beds and assorted supplies. Her best selling bed, the...
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2. A specialty coffee house sells Colombian coffee at a steady rate of 285 pounds per...
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A manufacturer keeps a continuous inventory review system on the key component, part X. The annual...
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23. (10 points) An electronics store sells tablets and laptops that are currently supplied by two...
how
do you get these answers?
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menu iterm. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks a 4) Judith Thompson is the manager of the student center cafeteria. She is introducing piza year, 5 days a week. The ordering cost is $15 and the holding cost is $0.40 per pizza per year What is the optimal number of pizzas Judith should order? 5) The annual...
Exon Revrew Department of Accounting, Finance & Economics Bowie State University ECON 483 Spring 2018 In-Class Review 1) The annual demand for a product has been projected at 2,000 units. to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. The purchase cost is $40 per unit. There are 250 working days per year. Currently, the company is ordering 500 units.cach time an order is placed....
) The demand during the lead time is normally distributed with a méan of 40 and a standard deviation of 4. If they have calculated a reorder point of 46.60 units, what service level are they assuming? 9505 Service leve 2) The annual demand for a product has been projected at 2,000 units. This demand is assumed constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent purchase cost. The purchase cost...
2. A specialty coffee house sells Colombian coffee at a steady rate of 285 pounds per year. The beans are purchased from a local supplier for $3.00 per pound. An estimated $38 are spent in paperwork and labor each time an order is placed for the coffee beans, and holding costs are based on a 20 percent annual interest rate. The lead time for an order to arrive from the supplier is exactly 1 month after it is placed. a....
how
do you get these answers?
23. (10 points) An electronics store sells tablets and laptops that are currently supplied by two different manufacturers in Asia. They are considering aggregating these orders by obtaining both products from a single supplier who will charge $10,000 per delivery. Annual holding costs are 25%. The monthly demand and unit cost for each product are summarized below. Tablets Laptops Monthly Demand 12,000 5000 Unit Cost of Product $100 $400 If you aggregate all products,...
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