Tweedy Guitars also sells ski hats on the side and expects to sell 35,000 ski hats...

 

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Tweedy Guitars also sells ski hats on the side and expects to sell 35,000 ski hats this year (yes, an odd pairing of products, but it seems to work), but demand is seasonal and can be uncertain. As a result, stockouts are possible and are estimated to cost $25 per order cycle. Tweedy acquires the hats for $19.00 each from Ouray Sportswear. Ouray charges $10 for processing each order. Jeff estimates that Tweedy's inventory carrying cost is 10 percent annually. Find Tweedy's EOQ for ski hats. (When calculating, round up to the nearest whole number for EOQ). b. Using the following information what is the appropriate level of safety stock for a 97.72% probability of being in stock during the order cycle (2 std. devs)? What about a 99.87% probability (3 std devs)? а. Average lead-time (replenishment cycle) in days = 12 standard deviation of lead-time = 2 Average daily demand = 145 Standard deviation of demand = 3 What is the ROP in units using the safety stock you calculated in part 4.b. at 97.72%? d. What is the ROP in units using the safety stock you calculate in part 4.b. at 99.87%? с. Tweedy Guitars also sells ski hats on the side and expects to sell 35,000 ski hats this year (yes, an odd pairing of products, but it seems to work), but demand is seasonal and can be uncertain. As a result, stockouts are possible and are estimated to cost $25 per order cycle. Tweedy acquires the hats for $19.00 each from Ouray Sportswear. Ouray charges $10 for processing each order. Jeff estimates that Tweedy's inventory carrying cost is 10 percent annually. Find Tweedy's EOQ for ski hats. (When calculating, round up to the nearest whole number for EOQ). b. Using the following information what is the appropriate level of safety stock for a 97.72% probability of being in stock during the order cycle (2 std. devs)? What about a 99.87% probability (3 std devs)? а. Average lead-time (replenishment cycle) in days = 12 standard deviation of lead-time = 2 Average daily demand = 145 Standard deviation of demand = 3 What is the ROP in units using the safety stock you calculated in part 4.b. at 97.72%? d. What is the ROP in units using the safety stock you calculate in part 4.b. at 99.87%? с.

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a EOQ sqrt2annual demandordering costholding cost per unit pe... View the full answer