Question: 5. Suppose that ABC Hotel in Problem 1 uses a periodic review inventory system. The average daily demand is 90/6 = 15 units and the

5. Suppose that ABC Hotel in Problem 1 uses a

5. Suppose that ABC Hotel in Problem 1 uses a periodic review inventory system. The average daily demand is 90/6 = 15 units and the standard deviation of daily demand is = 6.124 units. a. What P (in working days) and I should be used to approximate the cost trade-offs of the EOQ? b. How much more safety stock is needed than with a continuous review system? e. It is time for the periodic review. How much should be ordered? 4. ABC Hotel operates 52 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases cleaning supplies for $11.70 per unit. The following information is available about this product: Demand - 90 units/week (normally distributed) Standard deviation of weekly demand- 15 units Ordering cost-$54/order Annual holding cost-27 percent of cost Desired service level-80 percent Lead time-3 weeks Current on-hand inventory is 320 units, with no open orders or backorders

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!

Calculate the heat loss for a top-floor apartment and an apartment that is below the top floor, using the apartment building in Appendix A. Assume the apartment will be built at the geographical...

Using a periodic review model, given an average daily demand of 9 units, a standard deviation of daily demand of 1 days, 9 days between inventory reviews, 3 days lead time, 49 units of inventory on...

. Suppose the manufacturer in the Problem 7 uses a periodic (P) review system instead of continuous (Q) review system. The average daily demand is = 80/6 = 13 units, and the standard deviation of...

Suppose that No Tell Motel in Problem 5 uses a P system instead of a Q system. The average daily demand is 15 boxes (90/6), and the standard deviation of daily demand is 6.124 boxes. Thus, Order...

give right answer you will be voted Lead time, L, is known and constant. An order of size Q is placed on completion of the review. The size of the order is such that it brings the inventory on hand,...

Suppose that the ophthalmologist in the previous problem uses a P system instead of a Q system. The average daily demand is 1 5 pairs ( 9 0 / 6 ) , and the standard deviation of daily demand is 6 . 1...

Inventory Management: 3. The Italian eatery at the Student Union orders pre-made, frozen calzones from a gourmet food distributor. They cost $2.50 apiece. Ordering costs are $10 per order, and orders...

= Sam's Cat Hotel operates 52 weeks per year, 5 days per week. It purchases kitty litter for $7.00 per bag. The following information is available about these bags: 5 > Demand = 75 bags/week > Order...

2012.07~2015.09 University of Pittsburgh Bachelor of Commerce X Os and o are the standard deviations of the demand and lead time, respectively: . 1 is the on-hand inventory including inventory on...

Please show work in full detail with formulas, i do not have excel and need to understand how the problem is worked by hand 4. a) One of the hot sellers for the Wonka Toy store is the Chocolate...

A retail shop uses a periodic review inventory system. The annual demand for a consumer product sold by the shop is 5500 units, the ordering cost is $43 per order, and the inventory carrying rate is...

As the Chief Executive Officer (CEO) of an international company, I have two data centers housing equipment worth $200,000 and $100,000 respectively. Both data centers, denoted, respectively, as...

Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table summarizes data gathered relative to each of these alternatives. a....

What is the purpose of the statutory notice of deficiency? Used to schedule an appeals conference Glves taxpayer 9 0 days to file closing agreement Informational purposes Gives taxpayer 9 0 days to...

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...