ABC Company sell their cleaning kits in 12 x 10 boxes and it is normally distributed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC Company sell their cleaning kits in 12 x 10 boxes and it is normally distributed demand during the reorder point. Mean demand during the reorder period is 40 kits and the standard deviation is 10 kits. The policy is to have stockouts only 10 percent of the time. What reorder point should be used at this service level? Ans 1) Question 2 (4 points) Woods Sisters sells inexpensive doorbell systems. They have determined its ROP is 70. Holding cost per doorbell system per year is $10 and stockout cost is $15 per system. The optimum number of orders per year is 4. Based on historical experience, the probability distribution for inventory during the reorder period has been calculated as: # of Units Probability 50 60 .2 .2 70 .3 80 .2 90 .1 What is the best reorder point for routers using safety stock logic? Your answer must include the total cost for each reorder point and you must state which reorder point you recommend. In other words, just stating the reorder point will not be sufficient. Question 3 (3 points) You have recently hired a new operations manager and she wants to remove the EOQ system for ordering tires and instead order them 4 times a year. You explain to the new manager that using EOQ will save the organization money. She asks you to explain how?. Use the following information to explain: Annual Demand = 4000 units per year Annual Holding Cost = $25.00 per unit Ordering Cost = $70.00 per order a) What is the EOQ? b) What is the total Annual Cost using EOQ? c) What is the total annual cost not using the EOQ method but rather using the new manager's system of ordering 4 times a year? d) What, if any, is the difference in total annual cost between using the EOQ method and using the manager's method of ordering 4 times a year? Question 4 (3 points) Data for the following activities for The Green Project are below. The times are in weeks. The critical path for the project is A-D. The expected completion time is 36 weeks. Determine the probability of completing the project by the 38 week deadline. Ensure you show all your work including the variance calculations. When applying the final formula for z, just round to two places for the chart. Activity Optimistic Time Most Likely Time Pessimistic Time A B C D E 7 2 8 3 4 19 2 12 5 14 18 16 10 8 ABC Company sell their cleaning kits in 12 x 10 boxes and it is normally distributed demand during the reorder point. Mean demand during the reorder period is 40 kits and the standard deviation is 10 kits. The policy is to have stockouts only 10 percent of the time. What reorder point should be used at this service level? Ans 1) Question 2 (4 points) Woods Sisters sells inexpensive doorbell systems. They have determined its ROP is 70. Holding cost per doorbell system per year is $10 and stockout cost is $15 per system. The optimum number of orders per year is 4. Based on historical experience, the probability distribution for inventory during the reorder period has been calculated as: # of Units Probability 50 60 .2 .2 70 .3 80 .2 90 .1 What is the best reorder point for routers using safety stock logic? Your answer must include the total cost for each reorder point and you must state which reorder point you recommend. In other words, just stating the reorder point will not be sufficient. Question 3 (3 points) You have recently hired a new operations manager and she wants to remove the EOQ system for ordering tires and instead order them 4 times a year. You explain to the new manager that using EOQ will save the organization money. She asks you to explain how?. Use the following information to explain: Annual Demand = 4000 units per year Annual Holding Cost = $25.00 per unit Ordering Cost = $70.00 per order a) What is the EOQ? b) What is the total Annual Cost using EOQ? c) What is the total annual cost not using the EOQ method but rather using the new manager's system of ordering 4 times a year? d) What, if any, is the difference in total annual cost between using the EOQ method and using the manager's method of ordering 4 times a year? Question 4 (3 points) Data for the following activities for The Green Project are below. The times are in weeks. The critical path for the project is A-D. The expected completion time is 36 weeks. Determine the probability of completing the project by the 38 week deadline. Ensure you show all your work including the variance calculations. When applying the final formula for z, just round to two places for the chart. Activity Optimistic Time Most Likely Time Pessimistic Time A B C D E 7 2 8 3 4 19 2 12 5 14 18 16 10 8
Expert Answer:
Answer rating: 100% (QA)
Question 1 Reorder Point Calculation To determine the reorder point for ABC Companys cleaning kits given a service level of 90 stockouts only 10 of the time we can use the formula for the reorder poin... View the full answer
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
Posted Date:
Students also viewed these general management questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Cadmium is a highly toxic substance with lethal effects on the human body in concentrations greater than 4.4 x 10-mol/L. Cadmium (II) carbonate has a Kp of 5.2 x 10-12 at 25C. Calculate the...
-
Suppose a suspension action is induced by 3/4 in. (1.91 cm) bolts on 5 ft (1.52 m) centers (high strength) installed in the roof shown in the sketch. If the sag is then 40% of the unsupported sag of...
-
If S1, S2 are intervals of a chain, S1 S S2, inf S1 inf S2 and sup S1 sup S2
-
A loop of wire carries a current \(l\) as shown in Figure P28.13. Determine the direction of the magnetic field at the points labeled. Data from Figure P28.13 L x 2 3
-
Assigning activity-based costs in manufacturing, unused capacity, income Halifax Brass Company manufactures pumps and valves and uses a time-driven activity-based cost (TDABC) system. Last year,...
-
6. For an SHM oscillator, the amplitude is 5 cm and its time period is 4 seconds. The minimum time taken by the particle to pass between points which are at distances 4 cm and 3 cm from the centre of...
-
CVS Health Corporation showed 2019 net income from continuing operations of $6,631 million. The following is an excerpt from a disclosure note to CVS Healths 2019 financial statements: Required: 1....
-
0, there is Suppose we have a simple LC circuit with no battery. At time t no current in the circuit, but the capacitor has charge Qo. (a) For what value of Q will the energy stored in the capacitor...
-
Often it is necessary to validate data input by the user and repeat the request for the data in the case where the input of the user is not valid. This can be done by using a do loop, while loop, or...
-
< Career Preparation Assignment Start Date Jan 15, 2024, 12:00 AM Assessment Traits Requires Lopeswrite Due Date Jan 21, 2024, 11:59 PM Points 25 Assessment Description The purpose of this assignment...
-
Write the slope-intercept form of the equation of the line described. 4) through: (-5, 0), parallel to y=-- 3 5 5) through: (2,-4), perp. to y=2x-1
-
4) The mass of the seesaw shown is negligible, and the pivot is frictionless (2 pt) A. Is there a magnitude of force of F2 for which the seesaw will be in equilibrium (yes/no):__ B. If yes, what is...
-
Music Matters are interested in understanding how their earnings relate to the overall Musical Instrument market. Your manager has asked you to explore the market earnings to support the developments...
-
2. Consider the routing table and ARP table below from a Cisco router. This router has two Ethernet interfaces: Ethernet0/0 and Ethernet0/1. R S Routerfeshow ip route 192.168.10.0/24 is directly...
-
XYZ Inc. a calendar year, accrual basis corporation, had the following items during 2021: Gross revenue from operations Cost of goods sold $420,000 ($180,000) $9,000 LT capital gain .LT capital...
-
A Florida coastal community experiences a population increase during the winter months, with seasonal residents arriving from northern states and Canada. Staffing at a local post office is often in a...
-
Assume that the activity time estimates (in days) for the swimming pool construction project in Problem 11 are as follows: a. What are the critical activities? b. What is the expected time to...
-
Expedition Outfitters manufactures a variety of specialty clothing for hiking, skiing, and mountain climbing. They have decided to begin production on two new parkas designed for use in extremely...
-
Suppose events elsewhere in the world lead to an increase in demand for Japanese yen, as investors seek a safe haven for their funds. How would this development affect Japanese exporters and Japans...
-
If the Chinese renminbi appreciated against the U.S. dollar, what would you expect to happen to: a. U.S. exports to China? b. U.S. imports from China? c. the U.S. trade deficit with China? Explain...
-
Different areas and countries of the world use different currencies in their transactions. a. The nominal exchange rate is the rate at which the currency of one country can be exchanged for the...
Study smarter with the SolutionInn App