Question: 2. You realize that it would be better to compare this fixed interval inventory model with the fixed quantity inventory model. Using the same data

2. You realize that it would be better to compare this fixed interval inventory model with the fixed quantity inventory model. Using the same data as in question 1, That is, your cycle time is still 10 days. Compute (a) to (g) above, especially the safety stock and inventory related costs. Determine the reorder point also. 1. You are working as a supply chain specialist for a distributor of Canadian Crown Royal. Its average weekly demand is 60,000 liters with a standard deviation of 3,000 liters. Your cost for Crown Royal is $12 per liter. Your boss follows a policy of ordering on the 1st, 11th, and 21st of every month. That is, a fixed interval of 10 days. The replenishment lead time is 6 days. Inventory carrying cost is 10% of the cost of goods and replenishment cost is $500 per replenishment. Suppose the stock at hand on a 1st of a month is 6,000 liters. You maintain a customer service level (CSL) of 92 percent. Compute the following: 2. You realize that it would be better to compare this fixed interval inventory model with the fixed quantity inventory model. Using the same data as in question 1, That is, your cycle time is still 10 days. Compute (a) to (g) above, especially the safety stock and inventory related costs. Determine the reorder point also. 1. You are working as a supply chain specialist for a distributor of Canadian Crown Royal. Its average weekly demand is 60,000 liters with a standard deviation of 3,000 liters. Your cost for Crown Royal is $12 per liter. Your boss follows a policy of ordering on the 1st, 11th, and 21st of every month. That is, a fixed interval of 10 days. The replenishment lead time is 6 days. Inventory carrying cost is 10% of the cost of goods and replenishment cost is $500 per replenishment. Suppose the stock at hand on a 1st of a month is 6,000 liters. You maintain a customer service level (CSL) of 92 percent. Compute the following

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!

This exercise uses data from the STAR experiment introduced to illustrate fixed and random effects for grouped data. It replicates Exercise 15.20 with teachers (TCHID) being chosen as the cross...

TABLE 5 1. Complete the 1992 columns of Tables 3 through 6 , disregarding for now the projected data in the 1993 and 1994 columns. If you are using the Lotus model, use it to complete the tables. Be...

Consider the data of a small retail company. One popular SKU has the following critical information: an average annual demand of 15,000 units, each unit costs $3.80, an ordering cost of $45, a...

Problem: Big Al Plastics produces a variety of plastic items for packaging and distribution. One item, container #145, has had a low contribution to profits. Last year, 20,000 units of container #145...

1. Of the cost elements making up total inventory cost, which is the most difficult to estimate? A. Stockout costs. B. Holding costs. C. Carrying costs. D. Item cost. 2. The carrying cost for...

QUESTIONS 1. Complete the 1992 columns of Tables 3 through 6, disregarding for now the projected data in the 1993 and 1994 columns. If you are using the spreadsheet model, use it to complete the...

submitted screenshot of data table within question. How many sweaters should be ordered this year? Compute your answer for each individual school using two methods: (1) based on overall aggregate...

Explain the purpose of the worksheet.

On March 1, 2010, Quality Consulting, Inc., was formed when the owners contributed $35,000 cash to the business in exchange for common stock. On April 1, 2010, the company paid $24,000 cash to rent...

A profit center responsibility report q , . A . does not include revenues since that information only appears on the revenue center responsibility report B . includes traceable foxed expenses C . is...

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...