In Problem 1 in Chapter 15, the Saki motorcycle dealer in Minneapolis–St. Paul orders the Saki Super TXII motorcycle it sells from the manufacturer in Japan. Using the 3-month moving average forecast of demand for January as the monthly forecast for the next year, an annual carrying cost of $375, an ordering cost of $3,200, and a lead time for receiving an order of 1 month, determine the optimal order size, the minimum total annual inventory cost, the optimal time between orders, the number of orders, and the reorder point.
Answer to relevant QuestionsIn Problem 2 in Chapter 15, Carpet City orders Soft Shag carpet from its own mill. Using the 3-month moving average forecast of demand for month 9 as the monthly forecasts for all of next year, a production rate at the mill ...The Laurel Creek Lawn Shop sells Fastgro Fertilizer. The annual demand for the fertilizer is 270,000 pounds. The cost to order the fertilizer from the Fastgro Company is $105 per order. The annual carrying cost is $0.25 per ...The Spruce Creek Vegetable Farm produces organically grown greenhouse tomatoes that are sold to area grocery stores. The annual demand for Spruce Creek’s tomatoes is 270,000 pounds. The farm is able to produce 305,000 ...The 23,000-seat City Coliseum houses the local professional ice hockey, basketball, indoor soccer, and arena football teams, as well as various trade shows, wrestling and boxing matches, tractor pulls, and circuses. Coliseum ...The daily demand for Sunlight paint at the Rainbow Paint Store in East Ridge is normally distributed, with a mean of 26 gallons and a standard deviation of 10 gallons. The lead time for receiving an order of paint from the ...
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