Question: PLEASE MAKE IT EAY TO UNDERSTAND WHAT GOES IN WHAT BOX. THABNK YOU Problem 10-29 (Algorithmic) Floyd Distributors, Inc., provides a variety of auto parts

PLEASE MAKE IT EAY TO UNDERSTAND WHAT GOES INPLEASE MAKE IT EAY TO UNDERSTAND WHAT GOES IN WHAT BOX. THABNK YOU

Problem 10-29 (Algorithmic) Floyd Distributors, Inc., provides a variety of auto parts to small local garages. Floyd purchases parts from manufacturers according to the EOQ model and then ships the parts from a regional warehouse direct to its customers. For a particular type of muffler, Floyd's EOQ analysis recommends orders with Q* = 30 to satisfy an annual demand of 200 mufflers. Floyd's has 250 working days per year, and the lead time averages 15 days. Note: Use Appendix B to identify the areas for the standard normal distribution. a. What is the reorder point if Floyd assumes a constant demand rate? If required, round your answer up to the nearest whole number. r= b. Suppose that an analysis of Floyd's muffler demand shows that the lead-time demand follows a normal probability distribution with y = 11 and g = 1.5. If Floyd's management can tolerate one stock-out per year, what is the revised reorder point? If required, round your answer up to the nearest whole number. r= c. What is the safety stock for part (b)? If Ch = $6/unit/year, what is the extra cost due to the uncertainty of demand? Safety Stock = units Added Cost = $ / year

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