The optimal number of pairs of shoes per order is 5,280 pair. Requirement 2. Assume each...
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The optimal number of pairs of shoes per order is 5,280 pair. Requirement 2. Assume each month consists of approximately 4 weeks. If it takes 1 week to receive an order, at what point should warehouse OR2 reorder shoes? etermine the formula used to calculate the reorder point for reordering shoes in warehouse OR2, then calculate the reorder point. Demand per week 2,750 Purchasing lead time (wks) = Reorder point 1 2,750 pairs Requirement 3. Although OR2's average weekly demand is 2,750 pairs of shoes (132,000+ 12 months + 4 weeks), demand each week may vary with the following probability istribution: Total demand for 1 week Probability (sums to 1.00) 2,000 pairs 1,950 pairs 0.02 0.10 2,750 pairs 0.76 2,970 pairs 3,260 pairs 0.10 0.02 a store wants shoes and OR2 has none in stock, OR2 can "rush" them to the store at an additional cost of $4 per pair. How much safety stock should Warehouse OR2 hold? How will his affect the reorder point and reorder quantity? The relevant total stockout and carrying costs are the lowest when a safety stock of pairs increase of shoes is maintained. Therefore, Warehouse OR2 This will should the reorder point to hold that number as safety stock. pairs of shoes. The reorder quantity will ncrease. The optimal number of pairs of shoes per order is 5,280 pair. Requirement 2. Assume each month consists of approximately 4 weeks. If it takes 1 week to receive an order, at what point should warehouse OR2 reorder shoes? etermine the formula used to calculate the reorder point for reordering shoes in warehouse OR2, then calculate the reorder point. Demand per week 2,750 Purchasing lead time (wks) = Reorder point 1 2,750 pairs Requirement 3. Although OR2's average weekly demand is 2,750 pairs of shoes (132,000+ 12 months + 4 weeks), demand each week may vary with the following probability istribution: Total demand for 1 week Probability (sums to 1.00) 2,000 pairs 1,950 pairs 0.02 0.10 2,750 pairs 0.76 2,970 pairs 3,260 pairs 0.10 0.02 a store wants shoes and OR2 has none in stock, OR2 can "rush" them to the store at an additional cost of $4 per pair. How much safety stock should Warehouse OR2 hold? How will his affect the reorder point and reorder quantity? The relevant total stockout and carrying costs are the lowest when a safety stock of pairs increase of shoes is maintained. Therefore, Warehouse OR2 This will should the reorder point to hold that number as safety stock. pairs of shoes. The reorder quantity will ncrease.
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Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
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