Question: Question 49 (5 points) Brenda opens a pool and spa store in a lively shopping mall and finds business to be booming, but she often

Question 49 (5 points) Brenda opens a pool and
Question 49 (5 points) Brenda opens a pool and spa store in a lively shopping mall and finds business to be booming, but she often stocks out of key items customers want. She decides to experiment with inventory control methods such as using a fixed order quantity (FQS) and/or fixed order period (FPS) systems. The 28-ounce bottle of Super Algaecide (SA) is a high margin stock keeping unit (SKU), but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor 160 miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collects the following data with respect to these SA sales, Demand - 10 boxes per week Store operates 50 weeks/year Order cost = $40/order Lead time = 3 weeks Item cost $80/box Std. deviation in weekly demand - 6 Inventory-holding cost-15% per year Service level - 96%, Z-1.75069 If the current order quantity for SA is 20 boxes per order, how much money can she save per year by adopting an economic order quantity (EOQ) ordering policy? More than 8400 More than $300 but less than or equal to 5400 More than 100 but less than or equal to $200 Less than $100 None of the responses

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