1. If a company is working under a certain lead time schedule what is the reorder point for the following information?
   1. Lead Time = 12 hours
   2. Demand = 30 per hour

• 360 hours

2. What would the new reorder point be if the company adds a 20% safety stock for this item?

• 366

3. Why would a company consider adding safety stock to their inventory levels?

• Where there is uncertainly in lead times

4. Why would a company use inventory to cover up inefficiencies in their supply chains? Is this a good idea or a bad idea?

• to ensure that the company had sufficient time to walk the process that helps the company to reveal the inefficiencies. And it is a bad idea because it affects the customers

5. Given the following information, calculate the EOQ:
   1. Annual demand = 2,000,000
   2. Cost or ordering = $25
   3. Carrying costs = 45%

• 14907.11

6. Using the information in #7 what is the number of annual orders?

-135 order

10. If the company in #8 uses exponential smoothing (smoothing factor = .6) and the forecast for the year is the figure they use for EOQ calculations, calculate the EOQ using the following information:

• 1. The cost of ordering and carrying cost % are the same as #7
• 2. Starting with 2018, Forecast the 2020 demand using exponential smoothing and then use that forecast as the annual demand.

year	sales
2017	1,000,000
2018	1,200,000
2019	2,000,000
2020

ho. If the company in #8 uses exponential smoothing (smoothing factor = .6) and the forecast for the year is the figure they use for EOQ calculations, calculate the EOQ using the following information: a. The cost of ordering and carrying cost % are the same as #7 b. Starting with 2018, Forecast the 2020 demand using exponential smoothing and then use that forecast as the annual demand. year sales 2017 | 1,000,000 2018 1,200,000 2019 2,000,000 2020 9. Which question of inventory management does the EO