Question: A convenience store uses the fixed-period inventory control system (FPS) to manage its inventory of distilled water bottles. This system relies on the following information.

A convenience store uses the fixed-period

A convenience store uses the fixed-period inventory control system (FPS) to manage its inventory of distilled water bottles. This system relies on the following information. Average weekly demand 120 bottles per week Lead time 4 days Order cost $20 per order Unit cost $0.80 per bottle 24% for a year Annual inventory holding cost Standard deviation of weekly demand Desired service level with safety stock 15 bottles per week 80% Current on-hand inventory 89 0 Current scheduled receipts Current backorders 0 Number of operating weeks per year Number of operating days per week In the following, please follow hints closely. 52 weeks 7 days (a) [5] Using EOQ (rounded up), what is the time interval between reviews T in operating days? Note that after having the rounded-up EOQ, you should not round up values at intermediate steps; and, you should round T up only after the last calculation. (b)[3] What is the current inventory position (IP) in bottles? (c)[5] Without safety stock, what is the replenishment level without safety stock M(AD) in bottles? Note that the question does not ask for M(ST). (d) [2] If today is the review day and without safety stock, what is the order quantity in bottles given M(AD)

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