b. Determine the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do notround Intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)Reorder pointtires Problem 20-30 (Algo)It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities forthe various items have been correctly established. You decide to test one Item and choose Michelin tires, XW size 185 x 14 BSW. Aperpetual inventory system has been used, so you examine this, as well as other records, and come up with the following data:Cost per tireHolding costDemandOrdering costStandard deviation of daily demandDelivery lead timeOrder quantity$tires50 eachpercent of tire cost per yearBecause customers generally do not wait for tires but go elsewhere, you decide on a service probability of 90 percent. Assume thedemand occurs 365 days per year.a. Determine the order quantity. (Round your answer to the nearest whole number.)151,100per year$ 22 per order4 tires5 days

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Answered: Problem 20-30 (Algo) It is your…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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University Drug Pharmaceuticals orders its antibiotics every two weeks (14 days) when a salesperson visits from one of the pharmaceutical companies. Tetracycline is one of its most prescribed antibiotics, with average daily demand of 2,000 capsules. The standard deviation of daily demand was derived from examining prescriptions filled over the past three months and was found to be 800 capsules. It takes f ive days for the order to arrive. University Drug would like to satisfy 99 percent of the prescriptions. The salesperson just arrived, and there are currently 25,000 capsules in stock.How many capsules should be ordered?
Investigate the effects of demand variability on the overall effectiveness of the Wilson approach in inventory management.
Paulin’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 table to determine the optimal inventory target level (or order-up to level). Annual demand 3,910 mufflers ordering cost $75 per order S/D of daily demand 6 mufflers/wk. day service probability 87% Item cost $ 27.00 per muffler lead time 2 wk. Days Annual holding cost 36 % of item value wk. Days 230 per year Review period 18 working days What is the optimal target levels (order up to levels) use excels NORMSINVI() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round value 2 decimal places and final answer to the nearest whole number If the service probability is 90%, the optimal target level will increase, decrease or…
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1. What are some of the advantages of using sage 50 inventory system 2. Identify the steps to set up inventory item in sage 50 3. Explain the implication of sage 50 as an integrated system Plagiarism =o Write in good English language with examples
The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Relevant ordering costs per purchase $550 order Relevant carrying costs per year for each package: Required annual return on investment Required other costs per year 17% $7 Annual demand is 30,000 packages per year. The purchase price per package is $53. Which of the following statements is true of Allianz's EOQ system costs? O At EOQ, the annual relevant ordering costs is exactly the half of annual relevant carrying costs. O At EOQ, the annual relevant carrying costs is exactly the half of the annual relevant total costs. O At EOQ, the annual relevant carrying costs is higher than the annual relevant ordering costs. O At EOQ, the annual relevant carrying costs is equal to the annual relevant total costs.
Please do not give solution in image format thanku Regional Supermarket is open 360 days per year. Daily use of cash register tape averages 10 rolls. Usage appears normally distributed with a standard deviation of 2 rolls per day. The cost of ordering tape is $1 per order, and carrying costs are 40 cents per roll a year. Lead-time is three days. a) Ignoring the demand uncertainty (i.e., looking only at average values), find the economic order quantity (EOQ) and the reorder point (ROP). b) Consider now the uncertainty. The order quantity remains the same. If the target is to have a 99% annual service level, what should be the ROP
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