A warehouse supplies a single retailer with a product. The warehouse's purchasing lead time is 3...
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A warehouse supplies a single retailer with a product. The warehouse's purchasing lead time is 3 weeks and the lead time for the retailer (from the warehouse) is 1 week. Assume that forecast errors are normally distributed with the σ for 1 week being 70 units, and that o = √to₁. The annual demand rate is 12,000 units, and the following data have been gathered: Vw = $32/unit, VR = $38/unit, r = 0.22 $/$/year, n = 2, or the warehouse orders two batches of the retailer's order quantity at one time. The retailer's order quantity is QR = 500 units. Finally, suppose that the fractional charge per unit short, B₂, is set at 0.65. Find the reorder point for both locations. A warehouse supplies a single retailer with a product. The warehouse's purchasing lead time is 3 weeks and the lead time for the retailer (from the warehouse) is 1 week. Assume that forecast errors are normally distributed with the σ for 1 week being 70 units, and that o = √to₁. The annual demand rate is 12,000 units, and the following data have been gathered: Vw = $32/unit, VR = $38/unit, r = 0.22 $/$/year, n = 2, or the warehouse orders two batches of the retailer's order quantity at one time. The retailer's order quantity is QR = 500 units. Finally, suppose that the fractional charge per unit short, B₂, is set at 0.65. Find the reorder point for both locations.
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In this question you are asked to find the reorder point for both the warehouse and the retailer considering factors like demand lead time cost and safety stock Lets go step by step for each location ... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
Posted Date:
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