Question: Q2. All facts from Q1 remain the same except now Supplier A due to a labor strike requires 3 weeks to send the order from

Q2. All facts from Q1 remain the same except now Supplier A due to a labor strike requires 3 weeks to send the order from the time the order is placed. Assume that there are 48 weeks in a year and answer the following question: 2A. When will you place an order for jackets? Why? Show your calculation. (4 pts) 8 Page 2 of 5 W P (A) Q3. Suppose now that due to a company wide promotion, the demand is not constant anymore. Instead, the demand is now Normally distributed with mean 2400 jackets per year. The standard deviation of yearly demand is 400 jackets. Supplier A still needs 3 weeks to deliver the order. Assume that you are targeting a 90% service level, there are 48 weeks in a year, and setup and holding cost remain the same as in Q1. Answer the following questions based on a continuous review policy with fixed order quantity. 3A. What is the mean of the lead time demand? Show your calculations (2 pts) 3B. What is the standard deviation of the lead time demand? Show your calculations (3 pts) 3C. What is the safety stock? Show your calculations. (2 pts) 3D. When will you place an order for jackets? Show your calculations. (2 pts) 3E. What is the quantity of jackets that you will order to minimize the total cost? (1 pt) Q4. Suppose now that the lead time demand is discrete. Using historical lead time demand data, you find that the lead time demand has the following demand distribution Lead Time demand Freq. 110 1 120 130 140 150 160 170 5 15 17 8 3 1 Supplier A still needs 3 weeks to deliver the order. Assume that you are targeting a 90% service level, there are 48 weeks in a year, setup and holding cost remain the same as in Q1, and you use a continuous review policy with fixed order quantity. Answer the following questions. (Hint: See the calculations for Practice Problem 7 in these slides) NOTE: There is a question on the next page as well. 4A. When will you place an order for jackets? Show your calculations. (10 Pts) Q1. Let's say you work at The North Face retail store, and you have the following facts. Demand for jackets is constant and is equal to 2400 jackets per year. You can purchase jackets from a supplier named Supplier A at $400 per jacket. Every time you place an order, you incur $1500. You receive the jackets as soon as you place an order for jackets with Supplier A. Holding Cost to keep a jacket in the retail store is 20% of the jacket cost. Answer the following questions based on the above facts. 1A. When will you place an order for jackets? Why? (2 pts) 18. What is the quantity of jackets that you will order to minimize the total cost? Show your calculations. (3) pts) 1C. What is the minimum total cost that you can achieve? Show your calculations. (3 pts) Page 1 of 5

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. Lets say you work at The North Face retail store, and you have the following facts. Demand for jackets is constant and is equal to 2400 jackets per year. You can purchase jackets from a supplier...

Q1. Let's say you work at The North Face retail store, and you have the following facts. Demand for jackets is constant and is equal to 2400 jackets per year. You can purchase jackets from a supplier...

Choose machine F and create tables for Sales Budget, Production Budget, Direct Materials Budget, Overhead Budget, SGA Budget, Income Statement, Cash Budget, and Balance Sheet For the six months ended...

Choose Information for Machine F and fill in all the tabs ftom Exel Sheet. please make sure to enter all the correct numbers for each tab!! tou have to create a master budget using the information...

hello, I need help with this. these are the labor materials. Before you attempt this assignment, you will need to read the labor materials and watch the two videos on the history of the labor...

I need help figuring this ratio ASAP. The 10K I am using is attached. I would like an explanation if possible, not just an answer. I need to figure out where this information is even at. Thank you so...

Need the following info with explanations as soon as possible. using the attached 10K Prepare a horizontal analysis of your company's Income Statement over the past two years. Calculate the following...

Expanding Public-Sector Collective Bargaining In Illinois Would Restrict Worker Freedom And Increase The Cost Of Government (forbes.com) Use a minimum of two additional references from the course...

Write an engagement letter of no more than 1,050 words for a Section 404 audit of Apollo Shoes. Assume that Apollo Shoes is a publicly traded company for which the SEC requires an audit of internal...

In a study of how managers attempt to manage earnings, researchers analyzed a sample of 515 earnings-management attempts from a survey of experienced auditors. The frequency of effects is summarized...

A nonprofit organization had the following transactions in the year 2022: Donations received: $50,000 Grant received: $25,000 Program expenses: $30,000 Administrative expenses: $10,000 Fundraising...

A metric or measure is a representation of a . a company's factory overhead rate method. b . something that meets IRS tax guidance. c . something that complies with GAAP. d . something a person or...

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...