2DK 1 EOQ = TC = A retailer's demand for stock keeping unit (SKU) 756-RDU, white towels, is 28,540 per year. The cost of placing an order is $850, and the holding cost per unit per year is $32. If you consistently order at EOQ (rounded to the nearest whole number). what is the annual inventory holding cost? $19.696 $27,056 $39.392 $55.728 Next > 2 DA EO = VW TC = & H + bok A retailer's demand for stock keeping unit (SKU) 756-RDU, white towels, is 28,540 per year. The cost of placing an order is $850, and the holding cost per unit per year is $32. What is the economic order quantity (rounded to the nearest whole number)? 218 3483 2378 1691 None of the above Reorder Point = Lead Time Demand during Lead Time + Safety Stock Reorder Porn = LD+2.VLOD! + D? . $12 Management has instructed you to use a Z value of 2.33 for all safety stock calculations, which corresponds to a 99% service level (chance of running out of safety stock - 1% Solve the following problem. Dan's Dog Diner (DDD) is a low-key restaurant selling hot dogs and a long-time neighborhood favorite. DDD keeps an inventory of its best-selling product, the foot long Frankfurter, in the freezer and reorders as needed when inventory runs low. Specifically, Dan's rule of thumb is to place another order when there are only 100 foot-longs left. Average daily demand for the foot-long Frankfurter is 30 units with a standard deviation of 10 units, and the average replenishment lead time is two days with a standard deviation of 1 day. Lately, Dan has noticed that he runs out of foot-long Frankfurters nearly three times a month, on average Wanting to keep his customers happy, Dan decides to strive for a 99% in-stock rate (service level) moving forward. What should Dan's new reorder point be (Instead of 100)? If your answer has any decimal value, round up. For example, 2.3 rounds up to 3.0 302 189 156 138 None of the above Question 18 Critical Fractile F(0) = 24C ... where Cu is the understocking cost per unit and Co is the cost of overstocking per unit. Order quantity, Q'-D +25D where Dis average demand, z is the z-score for the desired service level and SD is the standard deviation of demand Scenario: Hugo's BBQ foodtruck plans to sell world famous brisket sandwiches that include a heaping % pound of slow smoked brisket at all Detroit Lions home games (you will be able to find his food truck and trailer pulled smoker parked behind the Mike litch School of Business 6 hours before kickoff). In order to get 1 pound of finished smoked brisket, you need to start with 1.0 lb of fresh USDA Prime brisket meat - you loose 50% to trimming and water/fat loss during the smoking process. Since Hugo's BBQ needs to purchase the meat in advance of the event and start the smoking process 24 hours before the game, Hugo must use past sales data to estimate a one-time buy of brisket meat and place his order with the butcher at Costco at least 2 weeks before a game - this is a NEWSVENDOR style inventory problem. Hugo's BBQ sells its mouthwatering sandwiches (made with butter-toasted Brioche buns) for $15 each. Material and variable production costs total $10 per sandwich ($6 for material and $4 for production) resulting in a $5 per sandwich proht. Any unsold sandwiches at the game can be sold in an evening sale in Hugo's neighborhood for $7 each and neighbors line up the street waiting for the food truck to drive up about one hour after the end of a game. There is plenty of demand to offload extra sandwiches in this way. This helps offset some of the losses due to unsold sandwiches but doesn't cover all of the loss since the neighborhood sales price is below the $10 per sandwich cost. During a non-Covid previous season, a similar competitor food truck that sold Philly Steak Sandwiches for the same price near Ford Field would sell 1,600 sandwiches per game with a standard deviation of 300 sandwiches. These numbers can be used to help Hugo's BBQ plan their production Question: How many pounds of brisket should Hugo's BBQ plan on ordering from Costco for the next Lion's game to optimize overall profit with the right number of sandwiches produced? Assume a desired z-value of 0.32 1.571 1696 3,392 3,142 None of the above