Question: 1) Using the fixed-time-period inventory model, and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time,

1) Using the fixed-time-period inventory model, and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time, 120 units of inventory on hand, a z of 1.96, and a standard deviation of demand of 3 units, which of the following is the order quantity?

2)Demand for an item is 1000 units per year. A processing fee of $10 will be charged for each order placed. The purchasing cost of the item is $20. The annual cost to carry an item in inventory is 20% of the item costs.

a)What is the optimal ordering quantity?

b)What is the annual ordering costs if the firm orders 75 units in each order?

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!

Using the fixed - time - period inventory model, and given an average daily demand of 2 0 0 units, 4 days between inventory reviews, 5 days for lead time, 1 2 0 units of inventory on hand, a z of 1 ....

Question 2 0 Using the fixed - time - period inventory model, and given an average daily demand of 7 5 units, 1 0 days between inventory reviews, 2 days for lead time, 5 0 units of inventory on hand,...

Using the fixed - time - period inventory model, and given an average daily demand of 7 5 units, 1 0 days between inventory reviews, 2 days for lead time, 5 0 units of inventory on hand, a service...

Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 10 days between inventory reviews, 2 days for lead time, 50 units of inventory on hand, a service...

Using the fixed-time-period inventory model, and given an average daily demand of 75 units, 7 days between inventory reviews, 2 days for lead time, 50 units of inventory on hand, a service...

Using the fixed - time - period inventory model, and given an average daily demand of 7 5 units, 1 0 days between inventory reviews, 2 days for lead time, 5 0 units of inventory on hand, a service...

Using the fixed-time-period inventory model, and given an average daily demand of 15 units, 3 days between inventory reviews, 1 day for lead time, 30 units of inventory on hand, a service probability...

Using a periodic review model, and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time, 120 units of inventory on hand, and a standard deviation of...

QUESTION 20 Using the fixed-time period inventory model, and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time, 120 units of inventory on hand, a z of...

Submit to complete this assessment Question 22 using the five-me period inventory model and given an average daily demand of 200 units, 4 days between inventory reviews, 5 days for lead time 120...

As of January 1, 2021, the City of Summerville began operating a municipal bus operation. The adjusted trial balance below was prepared as of December 31, 2021: Cash Investments in debt securities...

ChimneySweep provides cleaning services for residential chimneys and fireplaces. The cleaning service requires $12 in variable costs for cleaning materials. The fixed costs of labor, the company's...

All of the following statements about collateralized reinsurance are true EXCEPT a . Collateralized reinsurance contract is usually one - year contract; b . Collateralized reinsurance allows non -...

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...