Question: In using Continuous Review Policy for an inventory, it is given that the average weekly demand of iPhone7 is 44.58, the Standard deviation of weekly

In using Continuous Review Policy for an inventory, it is given that the average weekly demand of iPhone7 is 44.58, the Standard deviation of weekly demand is 32.08. The fixed ordering cost is $4,500, the Cost of one iPhone7 is $250. The Annual inventory holding cost is 18% of the product cost; Replenishment lead time is 2 weeks what would be the average inventory level? State all your assumptions carefully.

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!

The Western Plumbing Company (Western) started as a family business... The Western Plumbing Company (Western) started as a family business by three brothers in Kamloops in 1998 who left their general...

Hey i would like to answer these three questions 1. What is the expected customer lifetime value of a newly acquired customer? Use an annual discount rate of 10%. Do you think this value is likely to...

Northwoods Living is a country store specializing in knickknacks suitable for afarm-house decor. One item experiencing a considerable buying frenzy is a miniature Holstein cow. Average weekly demand...

In using Continuous Review Policy for an inventory, it is given that the average weekly demand of iPhone 7 is 44.58, the Standard deviation of weekly demand is 32.08. The fixed ordering cost is...

Suppose Walmart, Sells Samsung Galaxy cell phones Uses continuous review policy Suppose for Galaxy cell phones at Walmart, Average weekly demand is 800 phones Standard deviation of weekly demand is...

Product Orders (Demand) Information The company provides you with the following information for the past two fiscal years: Demand Characteristic 2019 2020 Annual Demand, sets 26,918 31,763 Average...

Average weekly demand is 800phones Standard deviation of weekly demand is 500phones Lot size (Q)is 2000 phones Now suppose that the lead time is reduced to the average lead time of 2weeks but the...

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Item cost $10.00, order cost $250.00, Annual holding cost rate 33%, Annual demand...

Dave's Auto Supply custom mixes paint for its customers. The shop performs a weekly inventory count of the main colors used for mixing paint. Average weekly demand 29 gallons Standard deviation of...

Use Thevenins theorem to find Vo(t),t>0 in the network. Discuss.

Siegel discusses victims and victimization. Victimization theories argue that victims are sometimes responsible for their own victimization. There are three primary theories of victimization that...

This semester, you will be creating a small business plan through the Lean Canvas Buniness Model. The frit stipp in ehis process will be iscontilying a promising opportunity for your venture. Finding...

1) The diagram shows the first two hills of a frictionless rollercoaster ride, marked A and B (the diagram is not to scale). At A the 1100 kg carriage is moving at 0.5 m/s, and at B it is moving at...

E8-16 E8-17 Determining Budgeted Overhead The overhead application rate for a company is $10 per unit, made up of $6 per unit of fixed overhead and $4 per unit of variable over- head. Normal capacity...

A list of financial statement items for Crane Corporation includes the following: accounts receivable $15,000; cash $14,600; inventory $7,400; supplies $5,100: prepaid insurance $5,300; accumulated...

The Budda-Bing Manufacturing Company Preparing Pro Forma Financial Statements for 2019 Budda-Bing Manufacturing is planning to implement a major plant-modernization program to improve its competitive...

1. In your completed lab report, review the recorded values in the table in Part 3. Answer and explain the following: 2. How did the charge change when the voltage supplied was changed? Compare at...

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

Government subsidy is intended to reduce the cost of living for the people. Government subsidies may be in the form of cash or goods for people. Suppose a governments records shows that 20% of the...

A local survey indicated that 81% of shoppers conducted online research before buying. It also found that 30% of shoppers are under the age of 40, and that 20% of shoppers are under the age of 40 and...

Summit Projects provides marketing services and website management for many companies that specialize in outdoor products and services. To understand customer Web behavior, the company experiments...