Bads, Inc , sells an average of 1 , 0 0 0 1 , 0 0 0 food processors each year Each order for food processors placed by Bads costs $ 5 0 5 0 The lead time is one month It costs $ 1 0 1 0 to hold a food processor in inventory for one year Annual demand for food processors is normally distributed, wit...

To determine the reorder point ROP for different service levels we can use the formula Demandduringl ...

Bads, Inc., sells an average of 1 , 0 0 0 1 , 0 0 0 food

Fantastic news! We've Found the answer you've been seeking!

Question:

Bads, Inc., sells an average of

1, 000

food processors each year. Each order for food processors placed by Bads costs $

50 .

The lead time is one month. It costs $

10

to hold a food processor in inventory for one year. Annual demand for food processors is normally distributed, with a standard deviation of

69.28 .

For each of the following values of

,

determine the reorder point:

95 %, 99 %, 99.9 % .

What will be the annual cost of holding safety stock?

Then, try to find

with

80 %,

and

90 % .

Related Book For answer-question

Financial Management for Public Health and Not for Profit Organizations

ISBN: 978-0132805667

4th edition

Authors: Steven A. Finkler, Thad Calabrese

See More Books

Posted Date: Jan 28, 2024 02:43 AM

See More Questions

. A vertical pole that is 2 meters tall casts a shadow that is 1.5 meters long. Nearby, at the same time, another vertical pole casts a shadow that is 6.5 meters long. How tall is this pole? a. Make...
The preceding problem describes the factors involved in making a managerial decision on the service level L to use. It also points out that for any given values of L, h (the unit holding cost per...
Inventory Planning . Rowers North, Inc. (RNI) would like to develop an inventory policy that will minimize the total cost associated with the companys inventory of rowing machines, while ensuring...
Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1...
In a sales-type capital lease, does a lessor report profit or loss on the sale of the leased asset at the inception of the lease? Explain.
Taxpayer Mavis Marble was involved in an auto accident in which she hit a pedestrian and that pedestrian later died. The pedestrian s estate sued Ms . Marble for wrongful death and her insurance...
Lester Corporation has 30,000 shares of $\$ 1$ par value common stock outstanding. The company has $\$ 250,000$ of retained earnings. At year-end, the company declares a cash dividend of \(\$...
Determine the price of a $200,000 bond issue under each of the following independentassumptions: Maturty Interest Paid Stated Rate Effective Rate 10 years annually 2. 10 years emiannually 3. 20 years...
Scenario: Maritime Security Experts are concerned about the complexities and vulnerabilities that exist in the Maritime Sector. Further, they have developed threat scenarios to assist with measures...
The following events concern Anita LeTourneau, a Manitoba law school graduate, for March 2021: 1. On March 4, she spent $20 on a lottery ticket. 2. On March 7, she won $250,000 in the lottery and...
1. Does your CAFR have a letter of transmittal? 2. Is the letter of transmittal signed by the chief financial officer? 3. What is the chief financial officer's name and position? 4. Does the report...
Demonstrate use of the analytic hierarchy process (AHP) tool to select project suppliers.
What are the strategies that can be deployed to integrate project supply chains?
What is system interoperability?
From your experience or observation, identify the procurement problems unique to your organization and how you would go about resolving them from a supply chain perspective.
What is system compatibility?
Marketable Securities $ 100,000 $ - $ 60,000 Inventory $ 100,000 $ - $ 85,000 Land $ 125,000 $ - $ 450,000 Building (class 4) $ 140,000 $ 95,000 $ 300,000 Instruments (class 8) $ 70,000 $ 52,000 $...
Explain five different cases of income exempt from tax with clear examples.
Using the information from Problem 4-54, allocate the costs using the step- down method. Compare the results with Problem 4-54. Do they differ? Allocation Statistics Direct Cost (S) Purchasing...
You are the manager of the Corn is Not Just for Ethanol (CNJE) relief organization, which works with a coalition of countries to help provide corn, wheat, and other food staples to countries where...
Should cash on hand and in bank accounts be maximized or minimized?
Bernard Ruegel has drawn up a trial balance which is presented below. You have the following extra information: 1. Closing inventory is 13,206. 2. There are the following amounts owing: advertising...
Two partners, Peter Tom and Sheila Thumb, have the following details of their accounts for the year ended 31 December 2012. Required: Prepare the relevant income statement and statement of financial...
Discuss the view that the accounts of partnerships are much like those of sole traders except for the need to share out the equity and profi t between more than one partner.

Bads, Inc., sells an average of 1 , 0 0 0 1 , 0 0 0 food

Question:

Expert Answer:

To determine the reorder point ROP for different service levels we can use the formula Demandduringl... View the full answer

Financial Management for Public Health and Not for Profit Organizations

Students also viewed these general management questions