Question: A retail store operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases apples for $11.50 per

A retail store operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases apples for $11.50 per bag. The following information is available about these bags. Demand = 96 bags/week Order cost = $58/order >Annual holding cost = 26 percent of cost Desired cycle-service level=92 percent Lead time = 2 week(s) (14 working days) Standard deviation of weekly demand = 10 bags

What is the EOQ? bags.

What would be the average time between orders (in weeks)? weeks.

What is the safety stock ? bags

What should ROP be? bags.

The store currently uses a lot size of 505 bags

What is the annual holding cost of this policy? $

What is the annual ordering cost? $

What are the costs if the store uses EOQ for ordering ?

The annual holding cost with the EOQ is $

The annual ordering cost with the EOQ is $

How much would the store save by ordering EOQ? $

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!

Homework: Homework #9 Question 8, Problem 13 Part 1 of 10 > HW Score: 70%, 7 of 10 points O Points: 0 of 1 Save Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous...

Sams Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.75 per bag. The following information is available about...

Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about...

Sam's Cat Hotel operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases kitty litter for $12.00 per bag. The following information is available about...

i will uplike and get more people to uplike if this is answered soon A retail store operates 52 weeks per year, 7 days per week, and uses a continuous review inventory system. It purchases apples for...

Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2,750 rolls. The cost per roll is $1,000, and the annual holding cost is 28 percent of the cost. Each order costs...

Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $12.00 per bag. The following information is available about...

Effects of Stockholders Equity Transactions on Statement of Cash Flows Refer to all of the facts in Problem 11-1. Required Indicate how each transaction affects the cash flow of Peeler Company by...

Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products (that is, the quantity supplied at each...

Which of the following statements regarding individual retirement accounts ( IRAs ) is true? Group of answer choices Traditional IRAs can be opened by anyone with a modified adjusted gross income (...

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...