a) What value of Z should be applied?
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- Based on available information, lead time demand for PC jump drives averages 48 units (normally distributed), with a standard deviation of 5 drives. Management wants a 98% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? 2.06 b) How many drives should be carried as safety stock? your response to the nearest whole number). units (roundBased on available information, lead time demand for PC thumb drives averages 49 units (normally distributed), with a standard deviation of 4 drives. Management wants a 95% service level. Refer to the standard normal table for z-values. a) What value of Z should be applied? b) How many drives should be carried as safety stock? units (round your response to the nearest whole number). c) What is the appropriate reorder point? units (round your response to the nearest whole number).Romulo Drugstore sells 10 bottles of Paracetamol syrup Strawberry flavor 60 mL a day, and 15 bottles on holidays and weekends. It takes 5 days for the supplier to deliver the order; and on peak seasons and certain occasions, the supplier takes 10 days to deliver the ordered items. What should be the safety stock level of the said item? 20 bottles 25 bottles 100 bottles 175 bottles
- Which of the following is one of the assumptions of EOQ model? Group of answer choices Annual demand is known and even throughout the year Orders are received partially There are quantity discounts Multiple items are involved Lead time variesThe john equipment company estimates its carrying cost at 15% and its ordering cost at $90 per order. The estimated annual requirement is 78,000 units at a price of $4 per unit. (i). What is the most economical no. of units to order?(ii). No. of orders to be placed in a year.(iii). About how often will an order need to be placed?Please explain me in brief about Pros and Cons of Re-Order Point Control and Re-Order Cycle Control Inventory control Systems.
- Wood County Hospital consumes 1,000 boxes of bandages per week. The price of bandages is $35 per box, and the hospital operates 52 weeks per year. The cost of processing an order is $15, and the cost of holding one box for a year is 15 percent of the value of the material.a. The hospital orders bandages in lot sizes of 900 boxes. What extra cost does the hospital incur, which it could save by using the EOQ method?b. Demand is normally distributed, with a standard deviation of weekly demand of 100 boxes. The lead time is 2 weeks. What safety stock is necessary if the hospital uses a continuous review system and a 97 percent cycle-service level is desired? What should be the reorder point?c. If the hospital uses a periodic review system, with P = 2 weeks, what should be the target inventory level, T?Part Number Part Unit Value in $ Quantity currently in inventory Average annual usage 1234 2.5 3000 1235 0.2 900 1236 15 1000 1237 0.75 7900 1238 7.6 2800 1239 4.4 5000 1240 1.8 1800 1241 0.05 1200 1242 17.2 2000 1243 2500 1244 7000 300 550 400 50 180 20 200 10 950 160 430 9 3.2 given following table, perform ABC classificationFisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 48,400 units per year, an ordering cost of $3 per order, and carrying costs of $1.50 per unit. a. What is the economic ordering quantity? _____________Units b. How many orders will be placed during the year? _____________Orders c. What will the average inventory be? ____________Units d. What is the total cost of ordering and carrying inventory? $__________
- 6. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use Maximum daily use Minimum daily use E0Q 280 240 180 1.000 200 Cost of placing an order Working days per year P20 250 days Lead time 6 days What is the reorder point?Average demand (µ) 480 Demand Standard deviation (σdLT) 35 Service level 85% Service level alternate 89% 1. What is the required safety stock at a 85 percent service level? ______ units 2. What is the reorder point? ______ units 3.What is the required safety stock at a 89 percent service level? ______ units 4. What is the additional safety stock? ______ unitsFerdows Electronics, Inc. (FEI), produces short runsof custom microwave radios for railroads and other industrial clients.You have been asked to reduce inventory by introducing akanban system. After several hours of analysis, you develop thefollowing data for connectors used in one work cell. How manykanbans do you need for this connector? ~Daily demand = l ,500 radiosProduction lead time = l daySafety stock = l /2 dayKanban size = 250 radios