Question: Question 10 10 points Save Answer Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a

Question 10 10 points Save Answer Sarah's Muffler

Question 10 10 points Save Answer Sarah's Muffler Shop has one standard muffler that fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Annual demand Standard deviation of daily demand Item cost Annual holding cost 5,700 mufflers 5 mufflers per working day 30 per muffler 30 % of the item value Ordering cost Service probability Lead time Working days $ $ 50 per order 90 % 2 working days 300 per year Use the above information to determine the best order size and the reorder point. Order Size = 252, R = 47 Order Size = 243, R = 40 Order Size = 300, R = 46 Order Size = 302, R = 23

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!