Question: please answer operations management question above D E F G H A Bc 1 The new office supply discounter, Peter Clips Etc. (PCE), sells a

please answer operations management question

please answer operations management question above

D E F G H A Bc 1 The new office supply discounter, Peter Clips Etc. (PCE), sells a certain type of 2 ergonomically correct office chair that costs $300. The annual holding cost rate is 40%, 3 annual demand is 600, and the order cost is $20 per order. The average lead-time is 4 days 4 with a standard deviation of 1.2 days. Because demand is also variable (standard deviation 5 of daily demand is 2.7), PCE has decided to establish a customer service level of 92%. The 6 store is open 300 days per year (15 points). 9 8 a. What is the optimal order quantity? b. What is the safety stock? c. What is the reorder point? 10 d. What is the safety stock, if required service level is increased to 97%? What is the safety stock, if required service level is decreased to 88%? 112 E. What is the service level, if safety stock in part b is increased by 2? 313 g. Service level, if safety stock in part b is decreased by 1? 14 11

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!

Q1 (16 points): The new office supply discounter, Peter Clips Etc. (PCE), sells a certain type of ergonomically correct office chair that costs $300. The annual holding cost rate is 40%, annual...

PLEASE TYPE OUT ANSWERS Using the appropriate model (EOQ or EPQ) answer the following questions: (10 points) a) In the basic EOQ model, if the cost of placing an order is reduced by half, and all...

Please show step by step thanks 5. Using the appropriate model (EOQ or EPQ) answer the following questions: (10 points) a) In the basic EOQ model, if the cost of placing an order is reduced by half,...

1. The annual demand for refrigerators has been about 8,000 units a year and constant throughout the year. Assuming there are 250 working days per year, what is the daily demand of this product? 2....

5. Using the appropriate model (EOQ or EPQ) answer the following questions: (10 points) a) In the basic EOQ model, if the cost of placing an order is reduced by half, and all other values remain...

5. Using the appropriate model (EOQ or EPQ) answer the following questions: a) In the basic EOQ model, if the cost of placing an order is reduced by half, and all other values remain constant, will...

answer all please The new office supply discounter, Paper Clips, Etc. (PCE, sells a certain type of ergonomically correct office chair which costs $300. The annual holding cost rate is 40%, annual...

Question 6 (1 point) The new office supply discounter, Paper Clips, Etc. (PCE), sells a certain type of ergonomically correct office chair which costs $300. The annual demand is 900 chairs with a...

(a) What are the null hypothesis and alternate or research hypothesis that you would state in order to assess the effectiveness of the course in deterring acceptability of academic offences? (b) What...

The Town of Thomaston has a Solid Waste Landfill Enterprise Fund with the following trial balance as of January 1, 2012, the first day of the fiscal year. During the year, the following transactions...

Under GAAP, accounting for nonmonetary transactions should be based on which of the following ? The initial purchase price of the assets The fully depreciated value of the assets The lowest available...

When older adults have difficulty with transportation and communication, or may be reluctant to request needed assistance to which they are entitled, they may be in need of: Group of answer choices...