Question: help answerring 9 & 10 Problem: A food store consumes an average of 4,000 units each month of a specific product. Customer demand is normally

help answerring 9 & 10 help answerring 9 & 10 Problem: A food store
Problem: A food store consumes an average of 4,000 units each month of a specific product. Customer demand is normally distnbuted with the standard deviation of the month of demand being 200 units. The store pays $10 for each unit to the supplier. The cost of ordering and receiving a shipment is $14 per order. The annual inventory carrying cost is 30% of the value of this product. The supplier lead time is 2 operating days. The shop operates 240 days per year or 20 days each month. Each order is recoived from a supplier in a single delivery. Fixed order quantity inventory system is used, and the suppher is paid when the order is delivered (cash on delivery). There are no quantity discounts, Please answer the below questions Math Questions: 1. What quantity should the store order with each order? 2. How many times per year will the shop order on ang? 3. How many operating days will elapse between 2 consecutive orders? 4. What is the store's minimum total annual cost of placing orders and carrying inventory (cycle stock)? 5. The company carries 50 units of satety stock. What is the annual cost to carry that safoty stock? 6. What is the standard deviation of demand during the lead-time period? 7. What is the safety stock if the store maintains a service level of 959 ? 8. What is the reorder point it the store maintains a service level of 95% ? 9. Story Problem. How would reorder points be impacted if supplier lead time was extended? 10. Story Problem. If the supplier negotiates payment at the time of order instead at the time of dolivery, how would that impact the total invontory cost at the store? "For question 9 and 10, please limit your response to fewer than 5 sentences

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!