Question: this is one question which is further divided into various sub parts. Could you please explain these step by step there should be 3 images
this is one question which is further divided into various sub parts. Could you please explain these step by step there should be 3 images



Question 50 (2 points) How much safety stock should they hold to achieve the stockout risk of 5%? Your Answer: Your Answer Question 51 (1 point) How much demand is there during the lead time? Your Answer: Your Answer Question 52 (1 point) What is the reorder point? Your Answer: Your Answer Question 53 (1 point) What is the annual cost of safety stock? Your Answer: Your Answer EOQ Q'Well, located in Guelph, is a large online retailer of rellable water bottles. Q'Well operates 300 days a year and sells an average of 280 one litre water bottles a day. They order bottles from a manufacturer in China. After ordering, bottles are always shipped within exactly 18 days. Annual holding costs per bottle are estimated to be 15% of the cost of bottles. The ordering cost is $100 per order. The cost of a one litre bottle is $4. What is the economic order quantity (EOQ) for Q'Well? What is the average inventory? What is the expected total number of orders per year? What are the total annual holding costs of the stock for Q'Well? What are the total annual ordering costs? If Q'Well orders in quantities of 6,000 or more, it can get a $0.20 discount per bottle. Should Q'Well take the quantity discount? How much should Q'Well order? Now assume that the demand for the water bottles is normally distributed with a variance of 25 bottles per day, and lead time is assumed to be normally distributed with a variance of 4 days (instead of the xed numbers given above). Assume that management has specied that no more than a 5% risk of a stockout is acceptable. What is the standard deviation of demand during lead time? What is the safety stock needed to attain a 5% risk of stockout during lead time? What is the demand during lead time? What should be the reorder point? What is the annual holding cost of maintaining the level of safety stock needed to support a 5% risk of a stockout? Question 42 (2 points) J Saved What is the EOQ? Your Answer: 5291 Your Answer [) Add attachments to support your work Question 43 (1 point) J Saved What is the average inventory? Your Answer: 2646 Your Answer Question 44 (1 point) x/ Saved What is the number of orders per year? Your Answer: 15.87 Your Answer Question 45 (1 point) ~/ Saved What are the annual holding costs? Your Answer: 1587 Your Answer Question 46 (1 point) What are the annual setup costs? Your Answer: Your Answer Question 47 (1 point) ~/ Saved Q'Well should take the quantity discount. Question 48 (2 points) J Saved How many should they order for the question in part c about the quantity discount? Your Answer: 6000 Your Answer Question 49 (2 points) What is the standard deviation of demand over lead time? Your Answer: Your
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
