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?

Daily demand for a product is 138 units, with a standard deviation of 36 units. The review period is 10 days and the lead time is 6 days. At the time of review, 58 units are in stock. If 98% service probability is desired (corresponding z = 2.05), how many units should be ordered? (please rounded to integer)

A daily newspaper is stocked by a coffee shop so its patrons can purchase and read it while they drink coffee. The newspaper costs $1.14 per unit and sells for $1.55 per unit. If units are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand is approximately normally distributed with µ = 150 and σ = 30. (a) What is your recommended daily order quantity for the coffee shop? (Round your answer to the nearest integer.) (b) What is the probability that the coffee shop will sell all the units it orders? (Round your answer to four decimal places.) (c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Find the recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.) What happens to the coffee shop's order quantity as the rebate is reduced? The higher rebate ---Select--- ▾ the quantity that the coffee shop should order.

A store sells university coffee mugs. Daily demand is 25 mugs with a standard deviation of 4 mugs per day. Each mug costs $7.85. Ordering costs are $11. The carrying costs are $2 per year. The store is open 250 days per year. Lead time is 6 days with a standard deviation of 1.6 days. Desired service level is 98%. Calculate the EOQ  (round your answer to the nearest whole number)       2. CAREFUL! YOUR NUMBERS HAVE CHANGED A store sells university logo hats. Daily demand is 22 hats with a standard deviation of 4 hats per day. Each hat costs $7.85. Ordering costs are $12. The carrying costs are $1 per year. The store is open 250 days per year. Lead time is 4 days with a standard deviation of 1.6 days. Desired service level is 98%. Calculate the ROP with safety stock.

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You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to the printer and buy the day's paper for $0.25 a copy. You sell a copy of the San Pedro Times for $1.30. Daily demand is distributed normally with mean = 260 and standard deviation = 46. At the end of each morning, any leftover copies are worthless and they go to a recycle bin. a. How many copies of the San Pedro Times should you buy each morning? Note: Use Excel's NORM.S.INV() function to find the z value. Round your z value and service level to 2 decimal places and final answer to the nearest whole number. Optimal order quantity b. Based on a, what is the probability that you will run out of stock? Note: Round your answer to the nearest whole percent. Probability %

Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the occasional fixer-upper who would prefer to get the job done fast rather than investing in a well-appointed tool box. Weekend Projects wants to find a supplier for a particular tool set that promises to be a big seller. Expected annual sales are 100,000 units (D). Weekend's warehouses operate 50 weeks a year. Management collected data on the two suppliers, which are contained in the table below: Annual Price/Unit Holding Cost/Unit Lead Time (L) (p) (wks) Supplier 10,000 25,000 50,000 Bradley $40,000 $26,000 $19,000 Alexander $30,000 $28,000 $17,000 $7.15 $7.15 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? and a shipping quantity of Using Annual Freight Costs Shipping Quantity (Q) -w an example Get more help. (H) $1.43 $1.43 6 4 Annual…

Bradley Solutions and Alexander Limited are two well-established suppliers of inexpensive tools. Weekend Projects is a national chain of retail outlets that caters to the occasional fixer-upper who would prefer to get the job done fast rather than investing in a well-appointed tool box. Weekend Projects wants to find a supplier for a particular tool set that promises to be a big seller. Expected annual sales are 100,000 units (D). Weekend's warehouses operate 50 weeks a year. Management collected data on the two suppliers, which are contained in the table below: Annual Freight Costs Shipping Quantity (Q) Price/Unit Annual Holding Lead Time (L) (p) $7.15 $7,15 Annual Supplier Bradley Alexander 10,000 25,000 $40.000 $26.000 50,000 $18.000 Cost/Unit (H) (wks) Administrative Cost $15.000 $1.43 $1.43 $30,000 $25,000 $17,000 6 $10,000 a. Which of the two suppliers would provide the lowest annual cost to Weekend Projects? What shipping quantity would you suggest? Using V and a shipping…

Peter Sagan is in charge of maintaining hospital supplies at Champs Hospital. During the past year the mean weekly demand for a special type of tubing was 186 packages of this tubing with a standard deviation of 13 packages of tubing. The lead time for receiving this tubing from the supplier is 1.5 weeks. Peter would like to maintain a 95% service level and places an order for 750 packages every time an order is placed. d) If the weekly demand is 186 and there is a 1.5 week lead time - what is the reorder point (99%      service level)? e) If the carrying cost per year is $0.50/unit/year - what is the additional cost associate with the      99% service level compared to 95% service level (i.e. cost of safety stock at 99% level - cost of      safety stock at 95% service level)?

A company has been approached by their supplier who would be willing to offer a discount of 5% on orders over 500 units. Information regarding current inventory costs is as follows: Holding cost per unit per annum 10% of purchase price Ordering costs = $2 per order Annual demand = 15,000 units Purchase price 200 units Identify which option is better for the company. $15 per unit Current EOQ quantity = = =