Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. The 28-ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data: Demand = 10 boxes per week Store open = 48 weeks/year Order cost = $36/order Lead-time = 5 weeks Item cost = $72/box Std. deviation in weekly demand = 6 Inventory-holding cost = 25 percent per year Service level = 90 percent Brenda wants to consider setting up a fixed-period inventory system for the 28-ounce bottle of Super Algaecide (SA) SKU. At the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 80 units on-hand. There were no scheduled receipts and 35 units were on backorder. What is the review period (T)? Do not round intermediate calculations. Round your answer up to the nearest whole number. [_________-]weeks What is stock replenishment level with safety stock (M)? Do not round intermediate calculations. Round your answer to the nearest whole number. [_________]bottles How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number. [__________-]orders/year
Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. The 28-ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data:
| Demand = 10 boxes per week | Store open = 48 weeks/year |
| Order cost = $36/order | Lead-time = 5 weeks |
| Item cost = $72/box | Std. deviation in weekly demand = 6 |
| Inventory-holding cost = 25 percent per year | Service level = 90 percent |
Brenda wants to consider setting up a fixed-period inventory system for the 28-ounce bottle of Super Algaecide (SA) SKU. At the beginning of the current week, D. J. Kole, the materials manager, checked the inventory level and found 80 units on-hand. There were no
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What is the review period (T)? Do not round intermediate calculations. Round your answer up to the nearest whole number.
[_________-]weeks
-
What is stock replenishment level with safety stock (M)? Do not round intermediate calculations. Round your answer to the nearest whole number.
[_________]bottles
-
How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number.
[__________-]orders/year
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