Question: Inventory management Duane Reade is determining its inventory policy for tissues. The weekly demand for tissues at Duane Reade is 400 packs. Each time that

Inventory management Duane Reade is determining
Inventory management Duane Reade is determining
Inventory management Duane Reade is determining its inventory policy for tissues. The weekly demand for tissues at Duane Reade is 400 packs. Each time that Duane Reade places an order for more tissues, they must pay a processing fee of $250 regardless of the order size. A pack of tissues costs Duane Reade $1.5 to purchase and the holding costs for a pack of tissues are $0.5 per pack per week. The lead time for delivery is 0.5 week. Every time, Duane Reade places an order of 1600 packs. Question 25 (4 points) Saved Suppose that each time that Duane Reade's inventory of tissues reaches 400 packs, an order is placed. Please calculate what will be Duane Reade's long run average inventory holding costs (dollars) per week. Please only write the numerical value with no unit (ex: 0 or 1 or 2 etc...). Please input an integer value (round your answer if needed). Your Answer: 500 Answer Question 26 (3 points) Saved How many orders on average will Duane Reade place per year? Please only write the numerical value with no unit (ex: 0 or 1 or 2 etc...). Please keep one digit after the decimal. Assume 1 year = 50 weeks. Your Answer: 12.5 Answer Question 27 (2 points) Saved What is the optimal order size in order for Duane Reade to minimize its average total inventory costs per week? In other words, what is the EOQ level for Duane Reade? Please only write the numerical value with no unit (ex: 0 or 1 or 2 etc...). Please keep exactly two digits after the decimal. Assume 1 year = 50 weeks. Your Answer: 632.45 Answer Question 28 (3 points) Saved Assuming that Duane Reade orders according to the EOQ quantity from the previous question. What is the optimal reorder point (ROP) for Duane Reade? Choose only one of the answers below. 100 packs 150 packs 200 packs 300 packs 400 packs

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!