Name cnapter 15 (0) Assignment variety on nsard muttier Sara 3 Sarah\'s Mutfier
ID: 399621 • Letter: N
Question
Name cnapter 15 (0) Assignment variety on nsard muttier Sara 3 Sarah's Mutfier Shop has one standard muffler that fits a large variety standar wishes to establish a reorder point system to manage inventory of this Use the following information to answer the questions. Annual demand Ordering cost 3.500 muffier $50 per order Standard deviation of dally demand- 6 mufflers per working day Item cost ·Annual holding cost Service probability Lead time Working days $30 per muffler 25% of item (muffler) value 90% 2 working days 300 per year a. Determine the best order size b. What is the reorder point?Explanation / Answer
a) Economic Order Size EOQ = SQRT(2*D*S/H) = SQRT(2*3500*50/(0.25*30)) = 216 mufflers
b) ROP = Average demand during Lead Time + Safety Stock = d*L+SS = d*L+z**L
ROP = 6*2+(1.282*6*2) = 23 mufflers (approx)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.