Question: 1. High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse. Customer orders are placed; the order is picked

1. High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse. Customer orders are placed; the order is picked and packaged, and then shipped to the customer. A fixed order quantity inventory control system (FQS) helps monitor and control these SKUs. The following information is for one of the calculators that they stock, sell, and ship.

Average demand 12.5 calculators per week

Lead time 3 weeks

Order cost $20/order

Holding cost $1.20/calculator/year

Number of weeks 52 weeks per year

Standard deviation of weekly demand3.75 calculators

SKU service level90 percent

Current on-hand inventory35 calculators

Scheduled receipts20 calculators

Backorders 2 calculators

a. What is the Economic Order Quantity?
b. What is the total annual order and inventory-holding costs for the EOQ?
c. What is the reorder point without safety stock?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse.Customer orders are placed; the order is picked and packaged, and then shipped to the customer.A fixed order...

Q:

Question 17 to Question 21 are based on the problem below. High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse. Customer orders are placed; the order is picked...

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged, and then orders are shipped to the customers....

Q:

What duration of annuity paying $5000 at the end of every quarter can be purchased with $200,000 if the invested funds earn 5.5% compounded semiannually?

Q:

Assume that the two circuits in Fig. 19.135 are equivalent. The parameters of the two circuits must be equal. Using this factor and the z parameters, derive Eqs. (9.67) and (9.68) 73 te

Q:

Molly sells her car, valued at $ 3 0 , 0 0 0 , to her nephew Todd for $ 1 8 , 0 0 0 . Molly has made a taxable gift. Question content area bottom Part 1 True False

Q:

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...