Robin Is trying to figure out how much extra inventoryof boxes of imported chocolate to keep. During thepast year, the demand per week was variable with amean of 85 and a σR 12. Lead time was also variablewith a mean of 6 weeks and o₁= 2. Riley would like tomaintain a 90% service level.What is the recommended safety stock?What is the ROP?

Given data is Demand (D) = 85 per weel The standard deviation of demand = 12 Lead time = 6 weeks…

Answered: Robin Is trying to figure out how much…

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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Module: Principles of Purchasing & Supplies. Qn: Explain how the Push and Pull factor effect can affect the Purchasing process
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14 To calculate Economic Order Quantity (EOQ =sqrt(D*k/h)
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Average daily demand (d) 130 cases Demand Standard deviation (σd) 20 cases Service level 94.0% Service level alternative 86.0% Lead tme, LT 6 days 1. What is the standard deviation of demand during lead time? Round your answer to one decimal place. _______ cases 2. What is the required safety stock at a 94 percent service level? Round your answer to the nearest whole number. _______ cases 3. What is the reorder point? Round your answer to the nearest whole number. _______ cases 4.What is the required safety stock at a 86 percent service level? Round your answer to the nearest whole number. _______ cases 5. What is the safety stock reduction? Round your answer to the nearest whole number. _______ cases
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Q4// A company producing compressors, decided to make a particular item in batches. The following information is available: • Receiving and inspecting = 10$ per order Verifying and payment of bill = 10$ per order • Other ordering and set up cost = 25$ per order • Consumption rate of item = 65 item per month %3D • Insurance = 3 $ per item in year • Storage and handling cost = 2$ per item in year • Taxes = 3 $ per item in year • Other inventory carrying cost = 4$ per item in year • Item cost = 5$ per item Calculate the Economic Batch Quantity, the number of lots, the total cost of one year requirement and what is the cycle time of order.

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