A dog food store uses the order-up-to policy to manage its dog food inventory. The order-u to level S = 360 bags of dog food. Please use the order-up-to policy to determine the order quantity for the two scenarios below. Scenario 1. The store has 120 bags of dog food on-hand and 200 bags of dog food on-orde The store should order bags. (Report 0 if you think the store should not order any more dog food.) Scenario 2. The store has 20 bags of dog food backordered and 400 bags of dog food in transit. The store should order bags. (Report 0 if you think the store should not order any more dog food.)

Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,750 units. His cost to carry one unit is $95 per year per unit, and he has estimated that each order costs $36 to place. Using the EOQ model, how many should Ray order each time? (Round your answer to the nearest whole number.) Optimal order quantity units

Ray wishes to determine the optimal order quantity for its best-selling bike in his bike store. Ray pays the supplier a wholesale price of $118 each for this bike. Ray has estimated the average daily demand for this bike is 23 units. The store opens 304 days a year. The cost to carry one bike in the store for a whole year is 8% of the unit bike cost. Ray has estimated that, on average, the order processing cost, i.e., ordering cost, with the bike supplier each time is $152, and it roughly takes 20 working days to receive the order from the supplier. Ray wishes to avoid the stock-out situation with a probability of 95%, and this requires Ray to carry a safety stock of 30 bikes in the store.   What is the optimal order quantity (EOQ value) that Ray should order each time from the bike supplier to minimize his long-run inventory cost?

With a normal demand and normal lead-time, increasing the order lead-time results in which of the following? Lower expected costs. Higher service levels. Higher stockout probability. All of the above.

The daily demand for printer paper at the School of Business is approximately normal with a mean of 15.2 boxes and a standard deviation of 1.6 per day. The Administrative Assistant reviews the inventory every 30 days, and the lead time is 5 days. The division set a policy of satisfying 96% of the demand for paper. If there are 125 boxes of printer paper in inventory at the beginning of this review period, how many boxes of printer paper should be ordered? What is the variance of demand during the review period plus the lead-time period? What is the standard deviation of demand during the review period plus the lead-time period?   A. Variance = 76.80               Standard deviation = 8.76   B. Variance = 89.60               Standard deviation = 9.47   C. Variance = 9.47               Standard deviation = 89.60   D. Variance = 12.8               Standard deviation = 3.58

ABC analysis is based on the presumption that carefully controlling all items is necessary to produce important inventory savings. A True B False