Question: Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A

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Oakwood Hospital is considering using ABC analysis to classify laboratory SKUs into three categories: those that will be delivered daily from their supplier (Class A items), those that will be controlled using a continuous review system (B items), and those that will be held in a two bin system (C items). The following table shows the annual dollar usage for a sample of eight SKUs. Fill in the blanks for annual dollar usage below. (Enter your responses rounded to the nearest whole number.) SKU Unit Value Demand (units) Annual Dollar Usage 1 5 GA 2 3 $0.35 $0.20 $0.02 $0.70 $ 4 80 50,000 125,000 400 700 40,000 150 GA 5 $4.50 $ 6 $1.10 GA 7 $1.40 $ 8 $0.01 1,300 GA At Dot Com, a large retailer of popular books, demand is constant at 18,700 books per year. The cost of placing an order to replenish stock is $15, and the annual cost of holding is $2.00 per book. Stock is received 6 working days after an order has been placed. No backordering is allowed. Assume 325 working days a year. a. Dot Com's optimal order quantity is | books. (Enter your response rounded to the nearest whole number.) Nationwide Auto Parts uses a periodic review inventory control system for one of its stock items. The review interval is 4 weeks, and the lead time for receiving the materials ordered from its wholesaler is 1 weeks. Weekly demand is normally distributed, with a mean of 150 units and a standard deviation of 30 units. Refer to the standard normal table for z-values. a. What is the average and the standard deviation of demand during the protection interval? The average demand during the protection interval is units. (Enter your response as an integer.) Osprey Sports stocks everything that a musky fisherman could want in the Great North Woods. A particular musky lure has been very popular with local fishermen as well as those who buy lures on the Internet from Osprey Sports. The cost to place orders with the supplier is $30/order, the demand averages 5 lures per day, with a standard deviation of 1 lure, and the inventory holding cost is $1.00/lurelyear. The lead time form the supplier is 10 days, with a standard deviation of 3 days. It is important to maintain a 95 percent cycle-service level to properly balance service with inventory holding costs. Osprey Sports is open 350 days a year to allow the owners the opportunity to fish for muskies during the prime season. The owners want to use a continuous review inventory system for this item. Refer to the standard normal table for z-values. a. What order quantity should be used? lures. (Enter your response rounded to the nearest whole number.)

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