Question: Question 1 (5 points) A company operates 50 weeks in a year. The average demand during a week for a certain product is 100 units

Question 1 (5 points) A company operates 50 weeks

Question 1 (5 points) A company operates 50 weeks in a year. The average demand during a week for a certain product is 100 units with a standard deviation of 5 units. The lead time for supplier to deliver the orders is 4 weeks. Assuming that the holding cost is $10 per unit and the ordering cost is $40 per order, answer to the following questions. (Use a continuous review system with a cycle service level of 92 %) 1) What is the annual demand? 2) What is the economic order quantity? 3) What is the standard deviation of demand during lead time? 4) What is the safety stock? 5) What is the reorder point

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!

Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will receive their annual payments for as long as they live....

Question 24 (15 points) A company operates 50 weeks per year. The average demand during a week is 200 units, with a standard deviation of 5 units. The lead time is constant at 4 weeks. The holding...

Please solve the attached questionCASE STUDY Shall It Be Postponed? Foxcompany ( Fox ) Co . Ltd . was founded in 1 9 7 4 in Taiwan as a manufacturer of electrical components for computers. With...

Should Packing Be Postponed to the DC? Foxcompany (Fox) Co. Ltd. was founded in 1974 in Taiwan as a manufacturer of electrical components for computers. With strong research and development efforts,...

Supply Chain Q1: please answer the Q on detials and steps: QUESTION 1 5 points Angolia's Bar and Restaurants open all the year (365 days) it uses an average of 30 water bottles per week. The demand...

The Western Plumbing Company (Western) started as a family business... The Western Plumbing Company (Western) started as a family business by three brothers in Kamloops in 1998 who left their general...

1.0 Points Question 1 of 23 A company operates four machines during three shifts each day. From production records, the data in the table below were collected. At the .05 level of significance test...

### Question 1 : Which of the following best describes the concept of "Just - in - Time" ( JIT ) in operations management? A ) A strategy that focuses on producing large quantities of inventory to...

### Question 2 u 1 : Which of the following best describes the concept of "Just - in - Time" ( JIT ) in operations management? A ) A strategy that focuses on producing large quantities of inventory...

Find the Economic Order Quantity and reorder point, given Annual demand ( D ) = 1 , 0 0 0 units Average daily demand ( d ) = 1 , 0 0 0 / 3 6 5 Ordering cost ( S ) = $ 5 per order Holding cost ( H ) =...

The crime index refers to the number of incidents of crime. The numbers of burglaries, aggravated assaults, and all types of crime per 100,000 Americans are shown in Table 27 for various years. a....

Bob & Kate are purchasing a new home. The house they've selected has a price of $350,000. The mortgage interest rate is currently 5% (regardless of the option they pick below). They are considering...

The advantages of a _ _ _ _ include limited liability, ease of raising capital, ease of transfer of ownership, perpetual life and specialized management. Question 2 options:

Case Greenbuilders Pte Lid ("GPL") is a local construction company which specialises in providing bespoke Design and Build construction services for private residential homes that are designed to be...