You want to have a 97% chance that you do not run out of inventory while you wait for an order to come in.  Demand per day is 19 units per day, with a standard deviation of 3.  The lead time is 4 days.  What should your reorder point be? Round to the closest integer.

A medical equipment has an average monthly demand is 134 units. Its unit cost is $385. It costs $486 to place an order, and the inventory carrying cost is $44 per unit per year. The equipment requires a 95% of service level with a safety stock requirement of 20 units. What is the equipment's minimum annual total inventory cost?

A company orders 100 units of a raw material every time its inventory level drops to 50 units. The lead time for the delivery of the raw material is 5 days. Currently, the inventory level is at 80 units. Assuming constant demand, calculate the reorder point for the raw material.

A company has the demand of 1800 units per year (demand rate is constant), holding costs of $13 per unit and setup costs (ordering cost) of $27 per order. The order lead time is 1 days, and the company operates 245 days every year. To avoid a stockout, they need to place an order at least ______ days before the inventory runs out.

The demand for a particular part called SKU 005 is 1,200 units a year. The cost of one SKU 005 is $40.00. It costs $60.00 to place an order SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume that there are 250 working days in the year where SKU 005 is used. Once the purchasing manager for SKU 005 places an order, it always takes the vendor 5 working days to deliver that order. What should the purchasing manager's reorder point be? O A. 24 O B. 36 O C. 30 O D. 5 O E. 12

A manufacturer’s annual demand is 6000 units. The current units per order is $100. The setup cost is $50 per order and the holding cost is $7 per unit. The cost per unit is $2.50. The  Number of work days is 250 per year.   What is the annual setup cost? What is the annual holding cost?  What is the optimal order quantity (EOQ)? Using the EOQ, how many orders should be placed per year? What is the interval between orders? What is the inventory administration cost? What is the total cost of inventory?

1- The number of orders in the inventory system (called A) is total demand (called D) divided D by order size per replenishment (called S) or A =". D follows a normal distribution with a mean of 100,000 and standard deviation of 5000. While S is a continuous uniform distribution between 20,000 and 30,000. Generate 500 A random number and find the average.

With a normal demand and normal lead-time, increasing the order lead-time results in which of the following? Lower expected costs. Higher service levels. Higher stockout probability. All of the above.

You would like to use the fixed-time period inventory model to compute the desired order quantity for a company. You know that vendor lead time is 10 days and the number of days between reviews is 15. Which of the following is the standard deviation of demand over the review and lead time period if the standard deviation of daily demand is 10? -25 -40 -50 -73 -100