Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost $10.00 VALUE Order cost Annual holding cost Annual demand Average weekly demand Standard deviation of weekly demand Lead time Service probability $250.00 per order 33% of item cost 25,750 units 515 per week 25 units 1 week 95%

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

By finding the z-value through Excel's NORM.S.INV() function, determine the order quantity, reorder point, holding cost, and ordering cost. 

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.
PARAMETER
Item cost
$10.00
VALUE
Order cost
Annual holding cost
Annual demand
Average weekly demand
Standard deviation of weekly demand
Lead time
Service probability
$250.00 per order
33% of item cost
25,750 units
515 per week
25 units
1 week
95%
Transcribed Image Text:Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost $10.00 VALUE Order cost Annual holding cost Annual demand Average weekly demand Standard deviation of weekly demand Lead time Service probability $250.00 per order 33% of item cost 25,750 units 515 per week 25 units 1 week 95%
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.