Jils Job Shop buys two parts (Tegdiws and Widgets) for use in its production sys

Question

Jils Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppiers. The parts are needed throughout the enire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the recrder level. Widgets are ordered from a supplier who stops by every ive weeks. Data for both products are as fcllows ITEM TEGDIW WIDGET? 14,000 9,000 Hoiding cost {% of item cost) Setup cr ordor $ 110.00 20% 15 % $15.00 6 weeks eeks me Safety 40 units 6 units a. What is the reorder quantry and reorder point for Tegcis? (Round your answers to the nearest whole number.) point b. What is the inventory control system for Widgets? (Round your answer to the nearest wmole number.) Inventory control system for Widgets q I (Inventory on hand)

Explanation / Answer

a) Reorder quantity and reorder point for tegdiws

Q*= square root[{2*14000*110}/0.20*5]

= 1754.99 or 1755 units

R= Dl +ss= ( 14000/52) (6) +40= 1655.38 or 1655 units

Here D is the weekly demand

b) Widget –fixed time period model

Current on hand inventory is not given,we assume it to be 0

Q= d( T+L) + ss –I

=(9000/52)(5+2) + 6-0

=1217.53 OR 1218 units

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