question #4

2. What is the purpose of classifying items into groups, as the ABC classification does? 3. Almost certainly you have seen vending machines being serviced on your campus and elsewhere. On a predetermined schedule the vending company checks each machine and fills it up with various products. Which category of inventory model is this an example of? 4. Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every three weeks. Data for both products are as follows: IM Tacow WIDGET 5.000 2044 $25.00 Annual demand Holding cost (% of tem cost) Setup or order cost Lead time Safety Stock Item COS 10.000 20% $150.00 4 weeks 55 units $10.00 5 a. What is the inventory control system for Tegdiws? That is, what is the reorder quantity and what is the reorder point? b. What is the inventory control system for Widgets