David Rivera Optical has determined that its reorder point for eyeglass frames is 50 (d x...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
David Rivera Optical has determined that its reorder point for eyeglass frames is 50 (d x L) units. Its carrying cost per frame per year is $5, and stockout (or lost sale) cost is $40 per frame. The store has experienced the following probability distribution for inventory demand during the lead time (reorder period). The optimum number of orders per year is six. Number of Units 30 40 50 60 70 ROP-> Probability .2 2 .3 2 .1 1.0 How much safety stock should David Rivera keep on hand? David Rivera Optical has determined that its reorder point for eyeglass frames is 50 (d x L) units. Its carrying cost per frame per year is $5, and stockout (or lost sale) cost is $40 per frame. The store has experienced the following probability distribution for inventory demand during the lead time (reorder period). The optimum number of orders per year is six. Number of Units 30 40 50 60 70 ROP-> Probability .2 2 .3 2 .1 1.0 How much safety stock should David Rivera keep on hand?
Expert Answer:
Answer rating: 100% (QA)
To determine the safety stock that David Rivera Optical should keep on hand we can use the following ... View the full answer
Related Book For
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt
Posted Date:
Students also viewed these general management questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Freeport Corporation finds that demand for surfboards has average demand of 10 units per day, with a standard deviation of 3 units. Lead time from the supplier averages 12 days, with a standard...
-
The Home and Garden (HG) chain of superstores imports decorative planters from Italy. Weekly demand for planters averages 1,500 with a standard deviation of 800. Each planter costs $ 10. HG incurs a...
-
Consider the following differential equation describing a plug flow bioreactor: dy --Dy+py dt dz -(4-2)D-2uy dt where D = 0.4, 0.52/(0.1+),and the initial conditions are y(0) = 1 and z(0) = 4. a)...
-
A sociologist or anthropologist might suggest that the culture in U.S. firms simply reflects the dominant culture in the society as a whole. Therefore, to change the organization culture of a...
-
How many grams of sucrose (C12H22O11) must be added to 552 g of water to give a solution with a vapor pressure 2.0 mmHg less than that of pure water at 20C? (The vapor pressure of water at 20C is...
-
Verify that in Example 9.6 the momentum transferred to the ball by the gravitational force is \(\Delta p_{x}=m_{\mathrm{b}}\left(v_{x, \mathrm{f}}-v_{x, \mathrm{i}} ight)\). Data from Example 9.6 A...
-
Mary Decker is suing the manufacturer of her car because of a defect that she believes caused her to have an accident, and kept her out of work for a year. She is suing the company for $3.5 million....
-
11 12 13 14 Height of a plant is regulated by: a) DNA which is directly influenced by growth hormone. b) Genes which regulate the proteins directly. Growth hormones under the influence of the enzymes...
-
Given two arrays each of length n, arr1, and arr2, in one operation, any two elements of an array can be swapped. This can occur any number of times. Find the maximum possible sum of i*(arr2[1]-...
-
We generally know that IQ scores are a strong statistical predictor of multiple future life outcomes - income, education levels, health, even longevity. There are hundreds of studies that confirm...
-
The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Invested Assets Retail Division Commercial Division Internet Division...
-
FORMATIVE ASSESSMENT 2 Read the case study below and answer ALL the questions that follow [100 MARKS] When Two Employees on the Senior Team Hate Each Other Barker Sports Apparel recently conducted...
-
a) Define in your own words what is meant by a static method. Show with an example how static methods are called. b) Given the following class DitMath write a control program which calls the static...
-
make UML and relational Schema of those tables ? create table students ( ID int auto _ increment , first _ name varchar ( 5 0 ) , last _ name varchar ( 5 0 ) , primary key ( ID ) ) ; CREATE TABLE...
-
Modify your contact manager program to separate all implementation of your classes from the header files. You should have a .cpp file and a .h file for each class you create. Currently, the program...
-
A 12.4 g sample of P4 (molar mass= 123.9g/mol) and 64.0 g sampleof O2 (molar mass = 32.0 g/mol) are placed in a 2.0 L container andthe reaction is allowed to reach equilibrium at a giventemperature....
-
Smthe Co. makes furniture. The following data are taken from its production plans for the year. Required: 1. Determine the hazardous waste disposal cost per unit for chairs and for tables if costs...
-
Excalibur, Inc., received an order for a piece of special machinery from Rex Company. Just as Excalibur completed the machine, Rex Company declared bankruptcy, defaulted on the order, and forfeited...
-
I dont understand this cost report at all, exclaimed Jeff Mahoney, the newly appointed administrator of Valley General Hospital. Our administrative costs in the new pediatrics clinic are all over the...
-
Refer to the product costs developed in requirement (2) of the preceding problem. Prepare a table showing how Madison Electric Pump Corporations traditional volume-based product-costing system...
-
A platypus foraging for prey can detect an electric field as small as 0.002 N/C. To give an idea of the sensitivity of the platypuss electric sense, how far from a +10 nC point charge does the field...
-
Honeybees accumulate charge as they fly, and they transfer charge to the flowers they visit. Honeybees are able to sense electric fields; tests show that they can detect a change in field as small as...
-
Raindrops acquire an electric charge as they fall. Suppose a 2.5-mm-diameter drop has a charge of +15 pC; these are both typical values. If the strength of the earths electric field is 100 N/C, how...
Study smarter with the SolutionInn App