Question: E 8 11 5 D P301 - Problem 10 The Purchasing manager at the Hotel Chain in problem 9 has also decided to calculate a

E 8 11 5 D P301 - Problem 10 The Purchasing

E 8 11 5 D P301 - Problem 10 The Purchasing manager at the Hotel Chain in problem 9 has also decided to calculate a reorder point. Additional research revealed that the standard deviation of the daily demand is 120 gallons. The lead time to receive an order from the supplier is 10 days. The table from problem 9 e is provided below for your convenience. Inventory Information for Shower Cleanser The cost of a Gallon of the Cleanser $9.95 Annual Holding Cost (as a % of Cost) 18% Cost to place an Order $15.00 Average Daily Demand (in gallons) 1000 Current Order Quantity 6000 10 1. If the manager wanted a 95% customer service level what would be its reorder point? 2. Assume the manager decides to go with a 95% customer service level and use the EOQ quantity from 1 problem 9. What is the total cost associated with ordering and holding inventory for this item? 12 13 7 8 9 15 16 17

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Info from Previous problem Inventory Information for Shower Cleanser The Cost of a Gallon of the Cleanser Annual Holding Cost (as a % of Cost). Cost to place an Order Average Daily Demand in gallons)...

Ballard Integrated Managed Services, Inc., Part 2 QNT/351 Version 4 1 Ballard Integrated Managed Services, Inc., Part 2 The initial survey effort led by Debbie Horner, HR manager of Ballard...

uiz Note: It is recommended that you save your response as you complete each question. Question 1 (1 point) You and your colleague are designing a study to try to determine the ideal mean cost for a...

Group: PERON A+ PERSON B +PERSON C 1- Introduction 2- Literature a. Definition of operation management b. Definition of operation strategy and why it is important c. Components of operations strategy...

Final Backgrounder Saskatchewan 831 489.6 420.2 14.2% Alberta 1,569 2,214.4 1,791.5 19.1% British Columbia 3,277 2,591.1 2,215.0 14.5% Yukon 167 73.1 66.3 9.3% Northwest Territories 99 53.4 44.9...

Joshi was at a crossroads: should he borrow money to ramp up the growth of the business through new capacity building or see ServiceForce grow through more and more franchises? Evaluate financial...

Chapter 5 Summary: A. Identify and discuss five or six standards that could be established; include how variance from such standards could be measured. C. From the perspective of a hotel's general...

Financial crisis analysis. Find a current (within the last year) article on a company that has been faced with a significant financial crisis or challenge. It could be downsizing, starting up,...

Need stakeholder analysis, swot analysis and pestle analysis for the below case study- Bella Beverages Inc. 1 Bella Beverages Inc. Overview Bella Beverages Inc. (BB) is a Canadian company traded on...

Please help with the case analysis. Need the answers in the next 4 hours. Questions to be answered: Based on the information and assumptions provided in the case, calculate the market potential for...

Illustration 28 (Reissue of forfeited shares at a discount which were issued at par Ram Co. Ltd., issued 10,000 equity shares of t 10 each. The issue was fully subscribed The amount on shares is...

2. (a) Define Epilepsy (3mks) (b) Enumerate four (4) classifications of epilepsy (3mks) (c) Describe the stages of grand mal epilepsy and the nursing management at each stage. (5mks) (d) Identify...

A company purchases $ 5 , 0 0 0 of equipment by signing a twelve - month note payable with an interest rate of 5 % . This transaction will be recorded with a: ( Check all that apply. ) Multiple...

Economics. How does an increase in autonomous expenditure change real GDP in the short run? Does real GDP change by the Price level (GDP deflator, 2007 = 100) same amount as the change in aggregate...