A small copy center uses 4 550-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by normal distribution with a mean of 4 boxes per week and a standard deviation of 40 box per week. 3 weeks are required to fill an order for letterhead stationery. Ordering cost is $4, and annual holding cost is 33 cents per box Use Table a. Determine the economic order quantity, assuming a 52-week year. (Round your answer to the nearest whole number.) EOQ boxes . If the copy center reorders when the supply on hand is 13 boxes, compute the risk of a stockout. (Round "z" value to 2 decimal places and final answer to 4 decimal places.) Risk

A small copy center uses 4 550-sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by normal distribution with a mean of 4 boxes per week and a standard deviation of 40 box per week. 3 weeks are required to fill an order for letterhead stationery. Ordering cost is $4, and annual holding cost is 33 cents per box Use Table a. Determine the economic order quantity, assuming a 52-week year. (Round your answer to the nearest whole number.) EOQ boxes . If the copy center reorders when the supply on hand is 13 boxes, compute the risk of a stockout. (Round "z" value to 2 decimal places and final answer to 4 decimal places.) Risk

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.
Nelson’s Hardware Store stocks a 19.2 volt cordless drill that is a popular seller. Annual demand is 5,000 units, the ordering cost is $15, and the inventory holding cost is $4/unit/year.a. What is the economic order quantity?b. What is the total annual cost for this inventory item?
Please do not give solution in image format thanku Carousel Restaurant in Coquitlam is using perpetual inventory control method. Determine the reorder quantity of chickpeas cans if the par stock is 25 cans, delivery takes 5 days, the daily usage is 2 cans and the desired safety factor is 1.5 a. 10 b. 20 c. 25 d. 15
Consider the following data: Annual Usage in units -- 62,500; Working days per year -- 360; Cost to Carry -- P 5; Cost to Order -- P 2.50; Reorder Point -- 120. 1.What is the average inventory?2. How much is the total ordering cost?3. How much is the total cost to order and cost to carry
All Seasons Flower Shop uses 870 clay pots a month. The pots are purchased at $ 6 each. Annual holding cost per pot is estimated to be 35% of purchase cost. Ordering cost is $ 40 per order. The shop operates 12 months in a year. What is the economic order quantity (EOQ)?
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, and carrying costs are 40 cents per roll a year. Lead time is three days.a. What is the EOQ?
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
An office supply store open five days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant at 210 boxes. When orders are placed, the entire shipment arrives at once. The cost per box is $29, and the inventory holding cost is 33%. Orders are placed at a cost of $43 each, including preparation time and communication charges, and the lead time is two days. (Assume the store operates 52 weeks per year.) (a) Find the optimal order quantity. (Round your answer to the nearest whole number.) (b) What is the total annual cost (in dollars)? (Round your answer to two decimal places.) $ (c) What is the reorder point? (d) What is the cycle time (in days)? (Round your answer to two decimal places.) days
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 $1, and carrying costs are 40 cents per roll a year. Lead time is three days.a. What is the EOQ?b. What ROP will provide a lead time service level of 96 percent?
Weekly Average Demand 110 Standard deviation of (weekly) demand 30 Setup cost ($) 1400 Lead time (in weeks) 2 Procurement cost ($) 200 Holding cost /unit/week ($) 3 You are given the demand and inventory related information about a grocery store’s product in the table. The store is open for 46 weeks in a year. What is the reorder point if it wants to achieve a service level of 97%? (Do not round your intermediate calculations. Round your final answers to the nearest whole number.
What is the inventory position if the on-hand quantity is 762 units, scheduled receipts are 225 units, and 230 units are on backorder? Rapallo Sneakers, Inc. sells a pair of LG sneakers for $42. Due to the recent fitness craze, these shoes are in high demand: 52 pairs of shoes are sold per week. The ordering cost is $42 per order, and the annual holding cost is 25 percent of the selling price. If the store operates 48 weeks a year, what can you say about the size of the current order quantity of 225 pairs?
The demand of paper box every year is 6,400 boxes. Storage and handling costs for the paper are $40 a year per box, and it costs approximately $80 to order and receive a shipment of a paper box. a. What order size would minimize the sum of annual ordering and carrying costs? b. Compute the total annual cost using your order size from part a.