A local retailer anticipates an annual demand that product, and these shortages are backordered at a rate of 2 OMR per unit backordered. The co ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 30C per year. What is the optimal time between two consecutive order in weeks, assume 52 weeks in a y Round-up to the nearest integer a. 11 b. О O c. 13 d. None is correct O e. 10 Of. 12

A local retailer anticipates an annual demand that product, and these shortages are backordered at a rate of 2 OMR per unit backordered. The co ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 30C per year. What is the optimal time between two consecutive order in weeks, assume 52 weeks in a y Round-up to the nearest integer a. 11 b. О O c. 13 d. None is correct O e. 10 Of. 12

Name: A local retailer anticipates an annual demand 12000 units of a produc
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Description: A local retailer anticipates an annual demand 12000 units of a product. The retailer allows shortages forthat product, and these shortages are backordered at a rate of 2 OMR per unit backordered. The cost ofordering is 200 OMR, whereas, the annual h

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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The chapter presented various approaches for the control of inventory investment. Discuss three additional approaches not included that might involve supply chain managers.
The company uses 150,000 gallons of alcohol per month. The cost of carrying the alcohol in inventory is P0.50 per gallon per year, and the cost of ordering is P150 per order. The firm uses the alcohol at a constant rate throughout the year. It takes 18 days to receive an order once it is placed. The reorder point is?
A local retailer anticipates a daily demand of 50 units of a product. The retailers] allows shortages for that product, and these shortages are backordered at a rate of 1.75 times the annual unit holding cost per unit backordered. The cost of ordering is 200 OMR, whereas, the annual holding cost is 1 OMR per unit. The retailer operates 300 days per year. What is the optimal maximum inventory level?? Round-up to the nearest integer O a. 2000 Ob. 1000 O c. None is correct O d. 1955 O e. 1898
Daily demand for product sample kits is normally distributed with a mean of 35 units and a standard deviation of 4. Supply is virtually certain with a lead time of 9 days. The cost of placing an order is $20, and annual carrying costs for one kit is 25 percent. The price of one kit is $12.50. Assume a year has 365 days.If a 99% service level is desired, what is average inventory on hand? If demand had no variation, what would the reorder point be?
Dunstreet's Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 150 sheets on-hand. How many sheets should you order? Note: Use Excel's NORM.S.INV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole number.
Dunstreet's Department Store would like to develop an inventory ordering policy with a 95 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. Demand for white percale sheets is 3,200 per year. The store is open 365 days per year. Every four weeks (28 days) inventory is counted and a new order is placed. It takes 15 days for the sheets to be delivered. Standard deviation of demand for the sheets is three per day. There are currently 180 sheets on-hand. How many sheets should you order? Note: Use Excel's NORM.S.INV() function to find the z value. Do not round intermediate calculations. Round z value to 2 decimal places and final answer to the nearest whole number. Number of sheets
Dunstreet’s Department Store would like to develop an inventory ordering policy with a 95 percent probability of not sticking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets. The demand for white percale sheets is 5,000 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the sheets to be delivered. The standard deviation of demand for the sheets is 5 per day. There are currently 150 sheets on-hand.How many sheets should you order?
The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $0.80 per six-pack (each case of Stein beer contains four six-packs). Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer.At what point should he reorder Stein beer?
Dunstreet's Department Store would like to develop an inventory ordering policy of a 90 percent probability of not stocking out. To illustrate your recommended procedure, use as an example the ordering policy for white percale sheets.Demand for white percale sheets is 3,400 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 12 days for the sheets to be delivered. Standard deviation of demand for the sheets is five per day. There are currently 170 sheets on hand. How many sheets should you order?
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 97,200 units per year, an ordering cost of $4 per order, and carrying costs of $1.50 per unit. What is the economic ordering quantity? How many orders will be placed during the year? What will the average inventory be? What is the total cost of ordering and carrying inventory?
Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 3,000 rolls. The cost per roll is $1,000, and the annual holding cost is 28 percent of the cost. Each order costs $75. Part 2 a. How many rolls should Yellow Press order at a time? Yellow Press should order enter your response here rolls at a time. (Enter your response rounded to the nearest whole number.) Part 3 b. What is the time between orders? (Assume 200 workdays per year.) The time between orders is enter your response here days. (Enter your response rounded to one decimal place.)
A firm requires 90,000 units (D) over a 120-day production period and is placing 2-orders of equal quantity (O). Inventory is used at a constant daily rate. Ordering and Holding Costs are accounted for at end of the production period. Ordering Costs (OC) are $5,000/order and Holding Costs (HC) are $4.00/unit based on average inventory. The price per unit of inventory is $50 (C"). The firm pays for the inventory 5-days after delivery. The firm's cost of capital is 10% (1). For the inventory system, the SECOND order is delivered at f= and payment for that order is made at f= Total Cost Ordering Costs + Holding Costs + Item Cost Total Cost OCx (D/Q)] + [HC (0/2)] + (C x D) Order Number 1 2 - Delivered At t= ORDERING COSTS HOLDING COSTS 5, 120 60, 65 120, 125 5, 10 0 Order Quantity 45,000 Cost $10,000 Payment Due At t= Ⓒ 5 150 PVF 0.998632 0.960526 PV $9,605