Wear A Mask (WAM) uses a continuous review system and operates52 weeks per year. One of the SKUs has the followingcharacteristics.▪ Demand (D) = 20,600 units/year▪ Ordering cost (S) = $55.00/orderHolding cost (H) = $4.4/unit/year▪ Lead time (L) = 3 week(s)Cycle-service level = 90%, z = 1.28H.▪ Demand is normally distributed, with a standard deviation ofweekly demand of 103 units.▪ Current on-hand inventory is 1,040 units, with no scheduledreceipts and no backorders.What is the annual cost of holding the cycle inventory? (Please waitand round at the end of the calculations, enter your responserounded to 2 decimal places.)880

The annual cost of holding the cycle inventory can be calculated using the Economic Order Quantity…

Answered: What is the annual cost of holding the…

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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Wear A Mask (WAM) uses a continuous review system and operates 52 weeks per year with the following characteristics: Demand (d) = 52,505 units/week Ordering cost (S) = $55.00/order Holding cost (H) = $2.50/unit/year ■ Lead time (L) = 3 week(s) Cycle-service level = 90%, z = 1.28 ▪ Demand is normally distributed, with a standard deviation of weekly demand of 103 units. ■ ▪ Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders. What is the optimal order quantity? (Enter your response rounded to nearest whole number.)
Given Information Service Level - 95% (z value= 1.6649) Order Cost - $125Order Cycle (weeks) - 4, 5, 6, 7, 8Lead Time (weeks) - 2 weeksOperating Time - 52 weeks Standard deviation = 69.3237 Variable Holding Cost - 12.019% Fixed Holding Cost - 1,659,317.307 COMPUTE FOR ECONOMIC ORDER QUANTITY (EOQ) PER ORDER CYCLE. THANK YOUUUUU
The Rocky Corporation Sells fresh tomatoes at the Rutland Farmer's Market, the tomatoes cannot be carried over to the next order cycle (spoilage). The company purchases this product from a supplier for $12/unit. The product is then resold for $24/unit. Any product unsold, is sold to an organic farmer for pig feed and Rocky receives $2/unit. a. What is the cost of under supply? b. What is the cost of over supply? c. What percentage of the time during the reorder period should Rocky be able to satisfy demand for this product (SLP)?
A pharmacist is trying to determine the inventory order and stock levels for a particular drug. The following information is available about the drug. Demand (D) 85 tablets/week Working weeks per year 52 weeks Unit holding cost per year (H) $6 Order cost (S) $44/order Standard deviation of weekly demand (sd) 15 tablets Lead time (L) 2 weeks Desired cycle service level 95% If the pharmacist uses the continuous review (Q) system to control the inventory of the drug, what would be the order quantity and reorder point? If the pharmacist uses the periodic review (P) system to control the inventory of the drug, what would be the review interval and target inventory level? (Hint: Use the EOQ model to derive the review interval P)
Please do not give solution in image format thanku Yuliia is Guest Experience Director at the Lego store. Daily demand averages 450 kits, with a standard deviation of 50 kits. Lead time to receive new shipments is 12 days. Currently, the store policy is to have a level of service of 99.65%. How many units of safety stock will they need to carry? NOTE: This question is asking for SAFETY STOCK, not Reorder Point.
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
Average demand (µ) 480 Demand Standard deviation (σdLT) 35 Service level 85% Service level alternate 89% 1. What is the required safety stock at a 85 percent service level? ______ units 2. What is the reorder point? ______ units 3.What is the required safety stock at a 89 percent service level? ______ units 4. What is the additional safety stock? ______ units
Given the following information, determine the amount to order.d¯ = 30 units per day Desired service level = 99 percentσd = 3 units per day Amount on hand at reorder time = 71 unitsLT = 2 days OI = 7 days
Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 48,400 units per year, an ordering cost of $3 per order, and carrying costs of $1.50 per unit. a. What is the economic ordering quantity? _____________Units b. How many orders will be placed during the year? _____________Orders c. What will the average inventory be? ____________Units d. What is the total cost of ordering and carrying inventory? $__________
The Always Fresh Grocery Store carries a particular brand of tea that has the following characteristics:Sales = 8 cases per week Ordering cost = $10 per order Carrying charge = 20 percent per year Item cost = $80 per casea. How many cases should be ordered at a time?b. How often will tea be ordered?c. What is the annual cost of ordering and carrying tea?d. What factors might cause the firm to order a larger or smaller amount than the EOQ?
L. Houts Plastics is a large manufacturer of injection-molded plastics in North Carolina. An investigation of the company's manufacturing facility in Charlotte yields the information presented in the table below. How would the plant classify these items according to an ABC classification system? (Round individual dollar volumes to two decimal places. Also round percentage of dollar volume to two decimal places.) L. Houts Plastics Charlotte Inventory Levels Item Code Avg. Inventory (units) Value ($/unit) Dollar % of Dollar Volume Volume 1289 360 4.00 2347 300 4.00 1,200 36.20 2349 120 2.50 300 9.05 2363 75 1,50 2394 60 1.75 105 3.17 2395 35 2.00 6782 20 1.15 23 0.69 7844 12 2.05 24.6 0.74 8210 5 1.60 8310 7 2.00 14 0.42 9111 3.00 18 0.54 3,315.1 For the following three questions, consider only items 1289, 2349, and 8210 from the above table for relative classification (these are some of the items for which you computed the metrics). Based on the percentages of dollar volume, item number…
First Printing has contracts with legal firms in SanFrancisco to copy their court documents. Daily demand is almost constantat 12,500 pages of documents. The lead time for paper delivery isnormally distributed with a mean of 4 days and a standard deviationof I day. A 97% service level is expected. Compute First's ROP

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What is the annual cost of holding the cycle inventory? (Please wait and round at the end of the calculations, enter your response rounded to 2 decimal places.)