Most inventory models attempt to minimize
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- Most inventory models attempt to minimize
a. The likelihood of stockout
b. None of these
c. The numbers of orders placed
d. Total inventory-based cost
e The number of items ordered
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- Given this information:Lead-time demand 600 poundsStandard deviation of lead time demand 52 pounds (Assume normality.)Acceptable stockout risk during lead time 4 percenta. What amount of safety stock is appropriate?b. When should this item be reordered?c. What risk of stockout would result from a decision not to have any safety stock?Describe the 3 differences between a fixed-quantity (Q) and a fixed-period (P) inventory ns4 a. system? Fixed Quality Inventory Fixed Period InventoryAdd two (2) new customers, two (2) old customers and two (2) new POS transactions. SalesID InvoiceNo TransDate Item Description Color Size qty Price StoreID YearID Brand Name Address CurrID YEARVAL 82605 10828 06-Dec-09 8720400000227 REGULAR CIGARS 1 21.74 TCS 2009 HENRI WINTERMANS Yetty BDS 2009 47075 45036325 26-Aug-08 POSTCARDS POSTCARDS 1 1.4 CS 2008 Guenna BDS 2008 4590 60007295 14-Jan-08 3707-11-6 BLOUSES BLK/MLT L 1 586 CC 2008 GOTTEX Yankee CORAL REEF HOTEL USD 2008 4599 60007301 15/1/2008 3007-319-18 PANTS CORAL XS 1 200 CC 2008 CUT LOOSE Quigly YEARWOOD RD BLK ROCK USD 2008
- Q1/ Company produced 700 pieces of ceiling fius per year, the order cost is 1400S, the shortage cost is 15% of order cost and the inventory holding cost is two dollars per item per year. Find 1. Shortage allowable quantity. 2. to. 3. Number of ordering during the year.The following data give monthly Demband >1300 units Ordenng cost Holding lo st to Q - $ 15 pe oder $2/ units peo year 464 Lead time 4 days %3D wha t is the tolal annua / vanable inventory Cost Cie total annus! total aroual ordening) © $968 $ 8 ® $484 D $ I436 1452021- Which one of the following represent FIFO method of inventory evaluation? a. Old items remain in inventory b. Old merchandise is sold first c. New merchandise is sold first d. Average number of goods are sold
- 3. (Ch9) A store has collected the following information on one of its products: Demand = 4,500 units/year Standard deviation of weekly demand = 12 units Ordering costs = $40/order Holding costs = $3/unit/year Cycle-service level = 90% (z for 90% = 1.28) Lead-time = 2 weeks Number of weeks per year = 52 weeks a. If a firm uses the continuous review system to control the inventory, what would be the order quantity and reorder point? b. The firm decided to change to the periodic review system to control the item's inventory. For the most recent review, an inventory clerk checked the inventory of this item and found 300 units. There were no scheduled receipts or backorders at the time. How many units should be ordered? (HINT: Use the EOQ model to derive P, the time between reviews.)___ model of inventory control involves placing an order when inventory levels reach re-order level a. Q b. P c. Fixed-time period d. ABC Analysisb. Forward Thinking Limited (FTL) has used a fixed-time period inventory system that involvedtaking a complete inventory count of all items each month. However, increasing labor costs, areforcing FTL, to examine alternative ways to reduce the amount of labour involved in inventorystockrooms, yet without increasing other costs, such a shortage costs. Table 4 (below) is arandom sample of 20 FTL’s items.6Table 4. Annual Usage by Value of a sample of FTL’s InventoryItem Number Annual Usage ($) Item Number Annual Usage ($)1 10,700 11 2,8502 14,100 12 1,5003 4,100 13 3,3004 16,100 14 2,6005 8,200 15 110,1006 1,900 16 14,9007 84,100 17 9,6008 990 18 1,8009 1040 19 3,80010 94,100 20 12,600 (i) What would you recommend FTL to do to cut back its labor cost? (Illustrate using an ABCplan).
- Q4/ Company produced 1000 pieces of air conditioners per year, the order cost is 6000$, the shortage cost is 10% of order cost and the inventory holding cost is one dollars per item per year. Find 1. number of ordering during the year. 2. The interval between two orders. 3. The annual cost. 4. maximum inventory 5. shortage allowable quantityAt Matthews Car Repair, customer demand for a certain brand of motor oil is normally distributed with a mean of 15 gallons and a standard deviation of 6 work-days. To be 95% sure that Compact Car Repair will not run out of oil, we should reorder when motor oil in stock is less than _______ gallons. a. 24.9 b. 22.6 c. 23.7 d. 20Hi there. can you please help with the following queston Q.1. Differentiate between the two types of counting systems for inventory