QUESTION 1 A regional distributor purchases discontinued appliances from various suppliers and then sells them on...

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QUESTION 1 A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 52 weeks per year. Only when it is open for business can orders be received. Management wants to re-evaluate its current inventory policy, which calls for order quantities of 440 counter-top mixers. The following data re estimated for the mixer: Average daily demand (d) = 100 mixer Standard deviation of daily demand (d) = 30 mixers Lead time (L) = 3 days Holding cost (H) = $9.40/unit/year Ordering cost (S) = $35/ order Cycle-service level = 92% The distributor uses a continuous review (Q) system What order quantity (Q) should be used (round to the nearest whole number) What reorder point, R, should be used? (Round to the nearest whole number) What is the total annual inventory cost? (To two decimal places with no dollar signs or commas) If on-hand inventory is 40 units, one open order for 440 mixers is pending, and no backorders exist, what is the inventory position? Should a new order be placed? (Yes or No) QUESTION 2 A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 52 weeks per year. Only when it is open for business can orders be received. Management wants to re-evaluate its current inventory policy, which calls for order quantities of 440 counter-top mixers. The following data re estimated for the mixer: Average daily demand (d) = 100 mixer Standard deviation of daily demand (d) = 30 mixers Lead time (L) = 3 days Holding cost (H) = $9.40/unit/year Ordering cost (S) = $35/ order Cycle-service level = 92% The distributor uses a periodic review (Q) system Calculate the P (in workdays, rounded to the nearest day) that gives approximately the same number of orders per year as the EOQ. What is the Target Inventory Level (T)? (round to the nearest whole unit) [ What is the total annual inventory cost of the P system? (Answer to two decimals) QUESTION 3 In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time (OLT) is 85 units. The desired cycle-service level is 99 percent. The supplier of door knobs streamlined its operations and now quotes a one-week lead time. How much can safety stock be reduced without reducing the 99 percent cycle-service level? (Use Z = 2.33; round to the nearest unit) QUESTION 4 Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 6 weeks, and the lead time for receiving the materials ordered from its wholesaler is 3 weeks. Weekly demand is normally distributed, with a mean of 100 units and a standard deviation of 20 units. 1. What should be the target inventory level if the firm desires 97.5% stockout protection? (Use Z = 1.96; round to the nearest whole unit) 2. If 350 units were in stock at the time of a periodic review, how many units should be ordered? Click Save and Submit to save and submit. Click Save All Answers to save all answers. QUESTION 1 A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 52 weeks per year. Only when it is open for business can orders be received. Management wants to re-evaluate its current inventory policy, which calls for order quantities of 440 counter-top mixers. The following data re estimated for the mixer: Average daily demand (d) = 100 mixer Standard deviation of daily demand (d) = 30 mixers Lead time (L) = 3 days Holding cost (H) = $9.40/unit/year Ordering cost (S) = $35/ order Cycle-service level = 92% The distributor uses a continuous review (Q) system What order quantity (Q) should be used (round to the nearest whole number) What reorder point, R, should be used? (Round to the nearest whole number) What is the total annual inventory cost? (To two decimal places with no dollar signs or commas) If on-hand inventory is 40 units, one open order for 440 mixers is pending, and no backorders exist, what is the inventory position? Should a new order be placed? (Yes or No) QUESTION 2 A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 52 weeks per year. Only when it is open for business can orders be received. Management wants to re-evaluate its current inventory policy, which calls for order quantities of 440 counter-top mixers. The following data re estimated for the mixer: Average daily demand (d) = 100 mixer Standard deviation of daily demand (d) = 30 mixers Lead time (L) = 3 days Holding cost (H) = $9.40/unit/year Ordering cost (S) = $35/ order Cycle-service level = 92% The distributor uses a periodic review (Q) system Calculate the P (in workdays, rounded to the nearest day) that gives approximately the same number of orders per year as the EOQ. What is the Target Inventory Level (T)? (round to the nearest whole unit) [ What is the total annual inventory cost of the P system? (Answer to two decimals) QUESTION 3 In a continuous review inventory system, the lead time for door knobs is 5 weeks. The standard deviation of demand during the lead time (OLT) is 85 units. The desired cycle-service level is 99 percent. The supplier of door knobs streamlined its operations and now quotes a one-week lead time. How much can safety stock be reduced without reducing the 99 percent cycle-service level? (Use Z = 2.33; round to the nearest unit) QUESTION 4 Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 6 weeks, and the lead time for receiving the materials ordered from its wholesaler is 3 weeks. Weekly demand is normally distributed, with a mean of 100 units and a standard deviation of 20 units. 1. What should be the target inventory level if the firm desires 97.5% stockout protection? (Use Z = 1.96; round to the nearest whole unit) 2. If 350 units were in stock at the time of a periodic review, how many units should be ordered? Click Save and Submit to save and submit. Click Save All Answers to save all answers.