Question: Use the 50-day Hypothetical Demand Data (in the table below) and the other Hypothetical data included here: Hypothetical Data: . Assume 365 days per year.

Use the 50-day Hypothetical Demand Data (in the

Use the 50-day Hypothetical Demand Data (in the table below) and the other Hypothetical data included here: Hypothetical Data: . Assume 365 days per year. Use the Hypothetical Demand Data below, not the actual demand data in the simulation. Assume that management considers physical cost of holding inventory negligible compared to the financial costs. Assume that Littlefield earns 18 percent interest on all cash balances (annual interest rate, compounded daily), so cash spent on materials purchases represents a financial opportunity cost. Assume that material costs are $20 per kit. Assume that Littlefield incurs $1,300 in fixed administrative costs each time an order is placed. Assume a supplier lead time of 6 days. Assume a service level of 95%. Use the normsinv function in Excel to get the correct z-value. Use the stdev.s function in Excel for the standard deviation calculation. Make sure your answers are in kits. For this hypothetical exercise, assume that one batch consists of 45 kits and that one order requires 45 kits. What is the correct economic order quantity (EOQ) in kits? (Display your answer to the nearest whole number.) EOQ = Number kits What is the correct reorder point (ROP) in kits? (Display your answer to the nearest whole number.) ROP = Number kits Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 M Hypothetical Demand (# of Orders) 8 15 15 7 15 19 10 21 10 10 12 10 14 19 7 4 9 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 | 4 47 48 49 50 19 7 4 9 11 17 6 7 5 10 8 11 6 11 13 6 7 20 13 3 4 5 15 9 18 6 12 12 14 12 10 10 14 9 17 19 15 Use the 50-day Hypothetical Demand Data (in the table below) and the other Hypothetical data included here: Hypothetical Data: . Assume 365 days per year. Use the Hypothetical Demand Data below, not the actual demand data in the simulation. Assume that management considers physical cost of holding inventory negligible compared to the financial costs. Assume that Littlefield earns 18 percent interest on all cash balances (annual interest rate, compounded daily), so cash spent on materials purchases represents a financial opportunity cost. Assume that material costs are $20 per kit. Assume that Littlefield incurs $1,300 in fixed administrative costs each time an order is placed. Assume a supplier lead time of 6 days. Assume a service level of 95%. Use the normsinv function in Excel to get the correct z-value. Use the stdev.s function in Excel for the standard deviation calculation. Make sure your answers are in kits. For this hypothetical exercise, assume that one batch consists of 45 kits and that one order requires 45 kits. What is the correct economic order quantity (EOQ) in kits? (Display your answer to the nearest whole number.) EOQ = Number kits What is the correct reorder point (ROP) in kits? (Display your answer to the nearest whole number.) ROP = Number kits Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 M Hypothetical Demand (# of Orders) 8 15 15 7 15 19 10 21 10 10 12 10 14 19 7 4 9 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 | 4 47 48 49 50 19 7 4 9 11 17 6 7 5 10 8 11 6 11 13 6 7 20 13 3 4 5 15 9 18 6 12 12 14 12 10 10 14 9 17 19 15

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