Hint(s) Check My Work Brenda opened a pool and spa store in a lively shopping mall...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hint(s) Check My Work Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. She decides to experiment with inventory control methods, such as using a continuous review (fixed-order quantity) and/or periodic review (fixed-order period) system. The 28-ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data: Demand = 6 boxes per week Order cost = $50/order Item cost $100/box Inventory-holding cost = 15 percent year Store open 48 weeks/year Lead-time = 2 weeks Std. deviation in weekly demand = 4 Service level = 90 percent a. What is the economic order quantity (EOQ) rounded to the next highest number? Round to the nearest whole number. bottles b. What is the reorder point for SA with safety stock? Use Appendix A to determine z-value. Round z-value to two decimal places. Do not round intermediate calculations. Round your answer to one decimal place. bottles c. What is the average number of orders per year using the EOQ? Do not round intermediate calculations. Round your answer to two decimal places. orders/year C Hint(s) Check My Work Hint(s) Check My Work Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. She decides to experiment with inventory control methods, such as using a continuous review (fixed-order quantity) and/or periodic review (fixed-order period) system. The 28-ounce bottle of Super Algaecide (SA) is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data: Demand = 6 boxes per week Order cost = $50/order Item cost $100/box Inventory-holding cost = 15 percent year Store open 48 weeks/year Lead-time = 2 weeks Std. deviation in weekly demand = 4 Service level = 90 percent a. What is the economic order quantity (EOQ) rounded to the next highest number? Round to the nearest whole number. bottles b. What is the reorder point for SA with safety stock? Use Appendix A to determine z-value. Round z-value to two decimal places. Do not round intermediate calculations. Round your answer to one decimal place. bottles c. What is the average number of orders per year using the EOQ? Do not round intermediate calculations. Round your answer to two decimal places. orders/year C Hint(s) Check My Work
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
For each description below, decide whether the researcher is committing a Type I error or a Type II error. There is a slight but real tendency for taller people to be more intelligent. A Psych 45...
-
finalized in early 2020. Marsha received $3,000 of employer-provided adoption benefits. For part (a), assume that any adoption credit is not limited by modified AGI or by the amount of tax liability....
-
TEMOC Stores Inc. began life as a two-man operation named TEMOC Batteries in 1948 by its founder, Ethan Gilchrist, an engineer, as a business charging up batteries for customers' bulky wireless...
-
Coronado Industries has adopted the following production budget for the first 4 months of 2022. Each unit requires 4 pounds of raw materials costing $6 per pound. On December 31, 2021, the ending raw...
-
Alley Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $ 56,000. In addition, Alley received cash for 2,000 shares of its...
-
Many people believe that gender, weight, drinking habits, and many other factors are much more important in predicting blood alcohol content (BAC) than simply considering the number of drinks a...
-
Self-employment income is the net income of a trade or business owned and run by an individual. True/False
-
You have recently accepted a position with Vitex, Inc., the manufacturer of a popular consumer product. During your first week on the job, the vice president has been favorably impressed with your...
-
Calculate EFN The most recent financial statements for Reply, Inc., are shown here: Income Statement Balance Sheet Sales Costs $28,200 20,100 Assets $57,500 Debt $25,300 Equity 32,200 Taxable income...
-
a Y-connected three-phase, eight-pole, interior permanent magnet synchronous motor: the stator coil resistance is 5.67 m2, L= 110 pH and L=190 H, and the open-circuit phase voltage is Voc 20.1 Verms)...
-
What is a Coverdell Education Savings Account? What is a mutual fund expense ratio? What is a load fee? What is a no-load fund? What is a share class? What is a prospectus? What is a stock index?...
-
= A membrane process is being designed to recover solute X from a dilute solution where c 3x102kg mol X/m by dialysis through a membrane to a solution where c2 = 0.5 x 102kg mol X/m. The membrane...
-
How do credit rating agencies employ complex analytical models to assess the creditworthiness of corporate entities, and what impact does their evaluation have on the cost of borrowing and capital...
-
What are some factors to consider when choosing a financial advisor? What is the best way to save for retirement, and how much should I be saving each month? How can I improve my credit score, and...
-
what ways do financial institutions utilize advanced risk management techniques such as value-at-risk (VaR), stress testing, and scenario analysis to quantify and mitigate potential credit risk...
-
1. The table below shows delivery charges by a courier company. Mass (g) 200 400 600 Charges (Pesos) 550 1150 2950 Using linear interpolation or extrapolation, find the: (a) Delivery charges of a...
-
Suppose the market is semistrong form efficient. Can you expect to earn excess returns if you make trades based on? a. Your brokers information about record earnings for a stock? b. Rumors about a...
-
Alexa Inc. purchased equipment in 2018 for \(\$ 50,000\) with no residual value. On December 31,2020 , accumulated depreciation using the straight-line method for financial reporting was \(\$...
-
On December 31, 2020, Lexxus Inc. recorded an unrealized gain in income of \(\$ 5,000\) related to its trading debt securities originally purchased on December 15,2020 , for \(\$ 20,000\). Lexxus...
-
Underwood Co. had current tax expense of \(\$ 20,000\) for the year ended December 31, 2020. The ending deferred tax asset balance was \(\$ 6,000\), which was a \(\$ 4,000\) increase from January...
Study smarter with the SolutionInn App