Question: The Green Monster baseball team has recently assigned a long-time employee Mr. Ortiz to the grounds crew. One of Mr. Ortiz's responsibilities is ordering the

The Green Monster baseball team has recently

The Green Monster baseball team has recently assigned a long-time employee Mr. Ortiz to the grounds crew. One of Mr. Ortiz's responsibilities is ordering the fertilizer needed to keep the grass playing field in top condition. The grounds crew uses fertilizer at a steady rate 48 pounds per week. The fertilizer costs $12 per pound, and the supplier charges a fixed fee of $100 per order. The delivery lead-time is 2 weeks from the supplier. Green Monster's inventory holding cost is 0.5% per week. Which one of the following is NOT correct? Multiple Choice If Mr. Ortiz chooses an order quantity of 168 pounds, the time between two orders would be 3.5 weeks. Given delivery leadtime of 2 weeks, Mr. Ortiz should place an order when inventory drops to 120 pounds. The optimal order quantity is 400 pounds. If Mr. Ortiz decides to place an order once in every 10 weeks, the average inventory level would be 240 pounds

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!