Question: I need it now IM.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part:

I need it now

IM.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part:

Cost per case = $565

Parts per case = 48

Daily usage of parts per day (demand) = 53

Standard deviation of daily demand = 13

Purchasing lead time (in days) = 18

Desired service level = 89%

Ordering (administrative) costs = $390

Annual interest earned on cash = 6%

Assume that Boeing operates 365 days per year

What should be the safety stock for this part (in parts, not cases)? (Display your answer to two decimal places.)

What should be the reorder point (in parts, not cases)? (Display your answer to two decimal places.)

What is the economic order quantity (in parts, not cases)? (Display your answer to the nearest whole number.)

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:

If someone could be my hero and answer these within an hour please! :) IM.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part: Cost...

Q:

IM.73 Porter's purchases specialized glass for their custom mirrors for $175 for each case of 30 units. Annual demand is estimated to be 3,700 units per year. It costs $45 to process and receive an...

Q:

IM.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part: Cost per case = $555 Parts per case = 56 Daily usage of parts per day...

Q:

IM.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part: Cost per case = $570 Parts per case = 52 Daily usage of parts per day...

Q:

IM.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part: . Cost per case = $445 . Parts per case = 44 . Daily usage of parts per day...

Q:

IM.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part: Cost per case = $570 Parts per case = 52 Daily usage of parts per day...

Q:

IM . 6 5 Boeing orders a small part ( component ) used in many of its wing assemblies. Below is some information on this part: Cost per case = $ 4 1 5 Parts per case = 5 6 Daily usage of parts per...

Q:

IM . 6 5 Boeing orders a small part ( component ) used in many of its wing assemblies. Below is some information on this part: Cost per case = $ 4 1 5 Parts per case = 6 0 Daily usage of parts per...

Q:

IM.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part: Cost per case = $500 Parts per case = 40 Daily usage of parts per day...

Q:

IM.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part: - Cost per case =$550 - Parts per case =52 - Daily usage of parts per day...

Q:

Resequence patient record numbers in straight numeric order (column 2) and terminal-digit order (column 3). Straight Numeric Order Terminal-Digit Order 031950 031950 878912 101075 061946 884325...

Q:

Identify the five components that comprise pension expense. Briefly explain the nature of each component.

Q:

o: Business Planning Assistant ate: 20th September 2024. rom: Christina, Operations Manager ubject: 7 Seas Onboard Restaurants - Financial Information ou are aware that senior management is concerned...

Q:

As the manager of Smith Construction, you need to make a decision on the number of homes to build in a new residential area where you are the only builder. Unfortunately, you must build the homes...