Question: KUMAR Question 3 (a) Calculate the order point where:- Usage = 500 units a week Lead time = 4 weeks Safety stock = 300 units

KUMAR Question 3 (a) Calculate the order point

KUMAR Question 3 (a) Calculate the order point where:- Usage = 500 units a week Lead time = 4 weeks Safety stock = 300 units [4 marks] (b) A hardware shop stocks screw and orders them from a local supplier every 3 weeks (15 working days). Order lead time is 5 days. The average demand for 2.5cm screw is 200 per week (5 working days) and the shop keeps a safety stock of 3 days. An order is to be placed this week, and stock on hand is 150 screws. (i) Calculate the target level inventory and order quantity. [8 marks] (ii) If the objective of the shop is to reduce stock, what are your proposals for the order lead time, safety stock and review period? Do you agree that reducing screw stocks is the correct objective? Justify your answer. [8 marks] ...57 + a 90% ^ C A FO D3 Fto Prisc Delete Insert FIT F12 + Backspa 8 9 o P

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