W = 40. Each setup of production line cost approximately $135 and takes 1 week. The manufacturing

Question:

W = 40.  Each setup of production line cost approximately $135 and takes 1 week. The manufacturing cost per case is $4.50 and the annual holding cost is figured at 24% rate. Assuming the company operates 52 weeks a year and wish to maintain a 98% cycle service level. What is annual safety stock cost (rounded to dollar) under optimal order quantity and reorder point?s Beauty Bar Soap is produced on a production line that has an annual capacity of 60,000 cases. The annual demand is estimated at 26,000 cases. The weekly demand is normal distribution with µW = 500 and

a. $89

b. $370

c. $629

d. $2,073

e. None of the above

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

Question Posted: