Question: Annual demand 1 3 , 0 0 0 5 , 0 0 0 Holding cost ( % of item cost ) 1 0 % 3
Annual demand Holding cost of item cost Setup or order cost $ $ Lead time weeks week Safety stock units units Item cost $ Problem Algo Jill's Job Shop buys two parts Teddies and Widgets for use in its production system from two different suppliers. The parts are needed throughout the entire week year. Teddies are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every three weeks. Data for both products are as follows: $ a What is the reorder quantity and reorder point for Teddies? Note: Round your answers to the nearest whole number. ces Optimal reorder quantity Reorder point units units b What is the inventory control system for Widgets? Note: Round your answer to the nearest whole number. Inventory control system for Widgets q Inventory on hand
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
