Question: High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers. A fixed-order-quantity inventory control system (FQS) helps monitor and control these SKUs. The following information is for one of the calculators that High Tech stocks, sells, and ships.

Average demand 12.5 calculators per week

Lead time 3 weeks Order cost $20/order

Unit cost $8.00

Carrying charge rate 0.25

Number of weeks 52 weeks per year

Standard deviation of weekly demand 3.75 calculators

SKU service level 95 percent

Current on-hand inventory 35 calculators

Scheduled receipts 20 calculators

Backorders 2 calculators.

a.What are the economic order quantity?

b.What are the total annual order and inventory-holding costs for the EOQ?

c.What is the reorder point without safety stock?

d.What is the reorder point with safety stock?

e.Based on the previous information, should a fixed-order quantity be placed, and if so, for how many calculators?

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!

Q:

High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse. Customer orders are placed, the order is picked and packaged, and then shipped to the customer. A fixed...

Q:

Question 17 to Question 21 are based on the problem below. High Tech, Inc. is a virtual store that stocks a variety of calculators in their warehouse. Customer orders are placed; the order is picked...

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged, and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed; the orders are picked and packaged; and then orders are shipped to the customers....

Q:

Critically discuss the role of leadership and management in ensuring that Magnitude Technologies new performance management system is effective.

Q:

One common issue with most traditional Association Rule Mining (ARM) algorithms (e.g., Apriori, CARMA) is their inability to mine numerical data without first converting them into categorical ones....

Q:

The range of the sampling period T for which the closed-loop system is stable is: a. T1.12 b. The system is stable for all T> 0. c. 1.12 T 10 d. T 4.23

Q:

When older adults have difficulty with transportation and communication, or may be reluctant to request needed assistance to which they are entitled, they may be in need of: Group of answer choices...