Question: Given the information below, what is the reorder point (ROP) including safety stock to ensure a 95% service level? (Round to the nearest whole number)

Given the information below, what is the reorder point (ROP) including safety stock to ensure a 95% service level? (Round to the nearest whole number) Annual Requirements 13,500 Setup Cost $180 Holding Rate 21% Unit Cost $32 Order Lead Time 5 days Number of Days per Year 360 Days Standard Deviation of Daily Demand 7 200.00 - 249.99 250.00 - 299.99 ho 300.00 - 349.99 350.00-399.99

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 Finance Questions!

Late in 2018, Felix Machine Company (FMC) management was considering expansion of the company?s international business activities. FMC is a South Carolina?based manufacturer of compound machines for...

Given the information below, what is the reorder point (ROP) including safety stock to ensure a 95% service level? (Round to the nearest whole number) Annual Requirements 13,500 Setup Cost $180...

please answer ASAP PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Data for Questions #: 12, 13,...

Crew Soccer Shoes Company is considering a change of their current inventory control system for soccer shoes. The information regarding the shoes given below: Demand 130 pairs/week Lead time - four...

A golf wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its 1-irons, which have the following characteristics: Note: (1) when you find the value of Z...

You have been hired as a consultant by the Ontario Provincial Government to help identify "efficiencies". One potential area of cost reduction is to centralize the procurement of basic supplies...

Having difficulty with this lab :/ any kind of help would be useful and very much appreciated! Learning Objectives: Deeper understanding about the costs associated with an Ordering policy (i.e. an...

Q1: The information in this paragraph applies to this question and the five questions that follow (so, questions 1-6). The annual demand for the Super Thrive brand plant food manufactured by...

Question 1 The information in this paragraph applies to this question and the 5 questions that follow (so, questions 1-6). The annual demand for the Savonera bar soap, one of the luxury brands...

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...

If D=7,700 per month, S=$43 per order, and H=$2.50 per unit per month, a) What is the economic order quantity? The EOQ is units (round your response to the nearest whole number). b) How does your...

Coastal businesses along the Gulf of Mexico from Texas to Florida worry about the threat of hurricanes during the season from June through October. Businesses become especially nervous when...

Why are managers often unaware of the magnitude of quality costs?

Contributions to Roth IRAs are ____________________. Group of answer choices not tax deductible. used as tax credits. treated as above-the-line deductions. treated as below-the-line deductions

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...