Demand for an item is Normally distributed with a mean of 400 units a week and a standard deviation of 60 units. Ordering and delivery cost $300, holding cost is $12 a unit a year and lead time is constant at 3 weeks. Describe an ordering policy that gives a 95 per cent cycle-service level. (Note: Z 95 = 1.64) 1. What is the cost of holding the safety stock in this case? 2 Lee Brothers advertise a 90 per cent cycle-service level for all stock items. Stock is replenished from a single supplier who guarantees a lead-time of 4 weeks. (Note: Z 90 = 1.28) What reorder level should they use for an item that has a Normally distributed demand with mean 2,000 units a week and standard deviation of 200 units? 5. What is the effect of moving to a periodic review method with interval of two weeks? What would their ordering policy be? Julie paid JD100 a unit for items which she sold for JD200. The last delivery of 100 units arrived when there were 100 units left in stock, and the supplier told Julie that the unit cost had risen to JD125. She immediately raised her price to JD250, and at the end of the financial year she had sold 140 units. Answer the following: Closing stock = opening stock + purchases - sales = 2 Revenue = sales * unit price Average cost per unit Assuming FIFO: Cost of sales 4 3. Average cost per unit Assuming FIFO: Cost of sales Value of stock Gross profit Assuming LIFO: Cost of sales Value of stock Gross profit Assuming weighted value: Cost of sales = 1. Value of stock 12 Gross profit 10. Complete the MPS table below. The order policy is to produce in lots of 45 units. Lead time is 2 weeks. Week unity on hand Focal stomer orders hooked) Projected co-lond very MS MPS 11. Complete the MRP record below. XKZ set 120 Landel . 110.0 20 TO 130 12. Viola Products produces one item with the following bill of materials End munca A () tem Mom Home tem2 tem hem A recent check of their inventory reveals the following quantities on hand. Quantity Quantity 3 Item Quantity A 7 B 6 3 Item D E F Item G H 22 15 11 5 Currently no scheduled receipts exist for any of the dependent demand items. How many additional units of H are needed to produce 10 end items