Question: Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming. Her 28-ounce bottle of Super Algaecide (SA)

Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming. Her 28-ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. She collected the following data:

Demand = 9 boxes per week Store open = 48 weeks/year Order cost = $105/order Lead-time = 2 weeks Item cost = $210/box Inventory-holding cost = 10 percent year

What is the economic order quantity (EOQ) rounded to the next highest number for the SA boxes? Round to the nearest whole number.

Question 2 options:

62

66

70

74

Using Brenda's business data above, calculate the reorder point using Fixed Quantity System (FQS) with no safety stock. When should Brenda call her supplier to make a next order?

Question 3 options:

15 boxes

16 boxes

17 boxes

18 boxes

Using Brenda's business example above, how often would Brenda need to order SA boxes from her supplier in a year? Calculate the average number of orders per year.

Question 4 options:

6 orders per year

6.5 orders per year

7 orders per year

7.5 orders per year

If Brenda decides to use Fixed Period System (FPS) instead of FQS, how long should she wait between orders? In other words, what would be the Time Between Orders (T)? Express in weeks.

Question 5 options:

5 weeks

7 weeks

10 weeks

12 weeks

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