SKU Optimus Prime Bumblebee Starscream Mean demand (units/month) 15000 10000 10000 ToysInc Std. Deviation (units/month) 2000...

   

Transcribed Image Text:

SKU Optimus Prime Bumblebee Starscream Mean demand (units/month) 15000 10000 10000 ToysInc Std. Deviation (units/month) 2000 3000 1500 Unit cost ($/unit) $16 The reorder point for Optimus Prime in units should ideally be closest to? $20 $14 Unit Sale Price ($/unit) $20 $23 $16 For the data provided above for ToysInc, suppose the holding cost per unit per month is 3% of the cost of the item, and the backorder cost is 20% of the profit margin per month. The lead time to replenish the toys from the manufacturer in South Eastern China is two months. The fixed cost of an order is $500 for any toy order. SKU Optimus Prime 15000 Bumblebee Mean demand (units/month) Starscream 10000 10000 Std. Deviation (units/month) 2000 3000 1500 Unit cost ($/unit) $16 $20 $14 Unit Sale Price ($/unit) $20 $23 $16 For the data provided for ToysInc, suppose the holding cost per unit per month is 3% of the cost of the item, and the backorder cost is 20% of the profit margin per month. The lead time to replenish the toys from the manufacturer in South Eastern China is two months. The fixed cost of an order is $500 for any toy order. The average inventory for Optimus Prime will be: SKU Optimus Prime Bumblebee Starscream Mean demand (units/month) 15000 10000 10000 ToysInc Std. Deviation (units/month) 2000 3000 1500 Unit cost ($/unit) $16 The reorder point for Optimus Prime in units should ideally be closest to? $20 $14 Unit Sale Price ($/unit) $20 $23 $16 For the data provided above for ToysInc, suppose the holding cost per unit per month is 3% of the cost of the item, and the backorder cost is 20% of the profit margin per month. The lead time to replenish the toys from the manufacturer in South Eastern China is two months. The fixed cost of an order is $500 for any toy order. SKU Optimus Prime 15000 Bumblebee Mean demand (units/month) Starscream 10000 10000 Std. Deviation (units/month) 2000 3000 1500 Unit cost ($/unit) $16 $20 $14 Unit Sale Price ($/unit) $20 $23 $16 For the data provided for ToysInc, suppose the holding cost per unit per month is 3% of the cost of the item, and the backorder cost is 20% of the profit margin per month. The lead time to replenish the toys from the manufacturer in South Eastern China is two months. The fixed cost of an order is $500 for any toy order. The average inventory for Optimus Prime will be:

Answer rating: 100% (QA)

SOLUTION To calculate the average inventory for Optimus Prime we need to consider the demand lead ti... View the full answer