Question: Annual demand 3 , 0 0 0 mufflers Standard deviation of daily demand 6 mufflers per working day Item cost $ 3 0 per muffler

Annual demand 3,000 mufflers
Standard deviation of daily demand 6 mufflers per working day
Item cost $30 per muffler
Annual holding cost 25% of item value
Review period 15 working days
Ordering cost $50 per order
Service probability 90%
Lead time 2 working days
Working days 300 per year
What is the optimal target level (order-up-to level)?

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!

Q:

Sarahs Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Use the following...

Q:

Palins Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information...

Q:

Question: Reem's Muffler Shop has one standard muffler that fits a large variety of cars. Reem wishes to establish a reorder point system to manage inventory of this standard muffler.Annual demand 3...

Q:

QUESTION 25 (10 points) - Fixed-Period Inventory Systems (FPS) A corner store carries milk jugs with current and average information presented in the table below. The store follows a fixed-period...

Q:

Change the value in yellow highlighted cells to observe how changing the parameter affects the calculated values. Blue highlighted cells contain formulas that calcuate certain values based upon the...

Q:

QUESTION 25 (10 points) - Fixed-Period Inventory Systems (FPS) Average demand 32 jugs per week Lead time 3 days Order cost $15 per order Unit cost $1.6 for a jug Annual inventory holding cost 840%...

Q:

ComfyShoes is an online retailer which carries various shoe lines. For simplicity, we are only interested in the number of pairs of shoes (the unit is a pair of shoes), not in differences amongst...

Q:

6.1. Carbondale Company has the following credit policy 2/10, net 30. Carbondale also charges 1% per month interest on all accounts after 30 days. The following table shows the collection schedule of...

Q:

Chapter 9 Problems Solve all three (3) of these problems below for a possible total of 10 points. 1. Joe's Tasty Burger has determined that its production facility has a design capacity of 650...

Q:

1. A manager must set up inventory ordering systems for two new items, Gadget and Widget. Gadget is ordered from a supplier and is delivered at once, while Widget is produced in-house in batches of...

Q:

Wind Beneath My Wings Inc. employs one person to run its wind energy company and July is the first pay period for this employee. The employees gross income for the month of July is $6,900. FUTA taxes...

Q:

Select two organizations that you are interested in. Research information about the firms or talk with an employee if possible. What types of cultures do they have? Write a paragraph that describes...

Q:

What is one of the outreach, coordination, and research programs in fintech? Question 2 5 options: OCC Proposed Innovation Pilot Program CFPB Office of Innovation OCC Special Purpose National Bank...

Q:

estion 32 t yet Mention the type of purchasing when small industrial units join to pool their requirements and then place bulk orders with dealers. swered arked out of nog estion O a. Group...