Question: Annual demand 1 3 , 0 0 0 5 , 0 0 0 Holding cost ( % of item cost ) 1 0 % 3

Annual demand 13,0005,000 Holding cost (% of item cost)10%30% Setup or order cost $100.00 $15.00 Lead time 7 weeks 4 week Safety stock 65 units 5 units Item cost $5 Problem 11-17(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 52-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: $8 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)

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