ZuoTi.Pro
Question

The local Mars grocery store uses a periodic review model to stock their paper towels. After...

The local Mars grocery store uses a periodic review model to stock their paper towels. After collecting some data, the firm was able to establish that the daily demand for paper towels is 17 packs. The store reviews its inventory once a week and places an order on Sunday. The lead time to get the product from the local distribution center is 4 days and 16 packs are held as safety stock. What should be the order quantity if the inventory at the time of order placement is 71 packs? Note: answer with the number only. For example, answer like 12

business   Operations-Management   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Average daily demand (d) = 17 packs

Review period(R) = 1 week = 7 days

Lead time(L) = 4 days

Safety stock (S) = 16 packs

On hand inventory (I) = 71 packs

Order quantity = d(R+L) + S - I

= 17(7+4) + 16 - 71

= (17×11) + 16 - 71

= 187 + 16 - 71

= 203-71

= 132

0 0
Add a comment
Know the answer?
Add Answer to:
The local Mars grocery store uses a periodic review model to stock their paper towels. After...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A local store sells toilet paper to people in the surrounding communities. The demand for the...

    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...

  • Problem 14-35 (Algorithmic) Statewide Auto Parts uses a four-week periodic review system to reorder parts for...

    Problem 14-35 (Algorithmic) Statewide Auto Parts uses a four-week periodic review system to reorder parts for its inventory stock. A one-week lead time is required to fill the order. Demand for one particular part during the five-week replenishment period is normally distributed with a mean of 22 units and a standard deviation of 8 units. a. At a particular periodic review, 9 units are in inventory. The parts manager places an order for 17 units. What is the probability that...

  • A company manages its inventory for a specific item using the periodic review inventory model with...

    A company manages its inventory for a specific item using the periodic review inventory model with 10 days between orders. It is currently time to place an order, and the company notes that there are 140 items on hand. The item to be replenished has a lead time of 6 days with a daily demand of 440 units. The standard deviation of demand during the uncertainty period has been calculated to be 65. If the company wants to have at...

  • The manager at the local store of a national home improvement chain is studying their inventory...

    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)...

  • only a and b pt 2 for reference newsvendor model 3. The warehouse store in Problem...

    only a and b pt 2 for reference newsvendor model 3. The warehouse store in Problem #2 has a lot of market power. It has convinced its supplier to build a warehouse nearby and to provide vendor-managed-inventory (VMI) services - including delivery-- for free, with inventory being delivered on consignment. Under a vendor-managed inventory system, the warehouse store no longer sends orders to the supplier. Instead the supplier is responsible for managing the inventory according to some rules that are...

  • Bob’s apple store utilizes a continuous review system. Current on had inventory is 295 bags of...

    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...

  • #8 7. Suppose that Sam's Cat Hotel in the problem above uses a P system instead...

    #8 7. Suppose that Sam's Cat Hotel in the problem above uses a P system instead of a system. The average daily demand is d = 96/6 = 16 bags, and the standard deviation of daily demand is 0, od = 16 = To = 6.142 bags "week_15 a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ? b. How much more safety stock is needed with a P system than...

  • Your firm uses a periodic review system for all SKUs classified, using ABC analysis, as B or C it...

    please this is my last chance Your firm uses a periodic review system for all SKUs classified, using ABC analysis, as B or C items. Further, it uses a continuous review system for all SKUs classified as A items. The demand for a specific SKU, currently classified as an A item, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year,...

  • Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review invento...

    Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.25 per bag. The following information is available about these bags. Refer to the for z-values. >Demand 96 bags/week > Order cost $58/order > Annual holding cost 28 percent of cost >Desired cycle-service level 90 percent > Lead time #2 week(s) (10 working days) >Standard deviation of weekly demand 10 bags >Current on-hand inventory is 300...

  • Questions:  For Kroger deposits in transit: What is the account titled Store deposits in-transit (refer to footnote...

    Questions:  For Kroger deposits in transit: What is the account titled Store deposits in-transit (refer to footnote 1)? This is not an account you will find on the majority of company financial statements. Why does Kroger include this account? Is it odd that this account is larger than the cash balance? How do you explain this? Information Needed to Answer Questions: Jan. 28, 2017 Jan. 30, 2016 $322 910 1,649 7,852 (1,291) 898 $ 277 923 1,734 7,440 (1,272) 790 9,892...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT