Consider a sporting goods store that sells golf clubs. The inventory level of these golf clubs...

 

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Consider a sporting goods store that sells golf clubs. The inventory level of these golf clubs is continuously reviewed. Each time the golf club inventory position drops below the reorder point, an order is placed with the golf club manufacturer. It costs $55 to place an order for clubs. Each golf club costs $25.00, is sold for $35, and the inventory holding cost is $9.00 per club per year. Lead time is 7 days. It is reasonable to assume that the daily demand for golf clubs is normally distributed with mean 20 units and variance 6 units². a. Suppose the sporting goods store has determined an acceptable average time between stockouts would be 1.3 years. Compute the required safety stock and reorder point for an (R.Q) system. When is an order placed? How many golf clubs are ordered each time an order is placed? b. Now suppose the sporting goods store wants the fill rate to be 99%. Compute the required. safety stock and reorder point for an (R,Q) system. When is an order placed? How many golf clubs are ordered each time an order is placed? Consider a sporting goods store that sells golf clubs. The inventory level of these golf clubs is continuously reviewed. Each time the golf club inventory position drops below the reorder point, an order is placed with the golf club manufacturer. It costs $55 to place an order for clubs. Each golf club costs $25.00, is sold for $35, and the inventory holding cost is $9.00 per club per year. Lead time is 7 days. It is reasonable to assume that the daily demand for golf clubs is normally distributed with mean 20 units and variance 6 units². a. Suppose the sporting goods store has determined an acceptable average time between stockouts would be 1.3 years. Compute the required safety stock and reorder point for an (R.Q) system. When is an order placed? How many golf clubs are ordered each time an order is placed? b. Now suppose the sporting goods store wants the fill rate to be 99%. Compute the required. safety stock and reorder point for an (R,Q) system. When is an order placed? How many golf clubs are ordered each time an order is placed?

Answer rating: 100% (QA)

a To compute the required safety stock and reorder point for an R Q system with an acceptable average time between stockouts of 13 years Step 1 Calcul... View the full answer