PROBLEM 02.The fine Garment company sells fashion clothing. The forecasted annual demand for its premium leather jacket is 1200. The order processing cost per order is $25, and the inventory holding cost is $50/item/year. How many leather jacket should it order in one shipment?The fine garment company want to use re-order point system. It has the order quantity set at 34.64. To allow uncertainties in delivery and it customer demand, it wishes to hold 4 week of demand as safety stock. What should be re-order point if the delivery lead time is 2 weeks?

Demand(D)=1200 units Setup Cost(S)=$25 Holding Cost(H)=$50

Answered: The fine Garment company sells fashion…

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...

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PROBLEM 02.

The fine Garment company sells fashion clothing. The forecasted annual demand for its premium leather jacket is 1200. The order processing cost per order is $25, and the inventory holding cost is $50/item/year. How many leather jacket should it order in one shipment?

The fine garment company want to use re-order point system. It has the order quantity set at 34.64. To allow uncertainties in delivery and it customer demand, it wishes to hold 4 week of demand as safety stock. What should be re-order point if the delivery lead time is 2 weeks?

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