Question: Using the fixed time period inventory model and given an average daily demand of 300 units, 4 days between inventory checks, 5 days to lead

Using the fixed time period inventory model and given an average daily demand of 300 units, 4 days between inventory checks, 5 days to lead time, 1200 units of inventory on hand, a "z" of 1.96, and a variance standard demand on review and lead time for 12 units, how much should be ordered?

Step by Step Solution

★★★★★

3.23 Rating (144 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the order quantity using the fixed time period inventory model we can u... View full answer

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 Economics Questions!

A local supermarket chain in Lima has a daily shopping program for hydroponic tomatoes in bags, whose stock in gondolas is renewed every day to ensure the premium quality of the product. For this...

1) Assuming no safety stock, what is the re-order point (R) given an average daily demand of 50 units, a lead time of 10 days and 625 units on hand? 550 500 715 450 475 2) If annual demand is 12,000...

OfficePlus (OP) imports a special type of office paper from Germany, through TrazTudo (T&T). Both OP and T&T work 5 days per week (from Monday to Friday), 52 weeks per year. OP owns a central...

Two wires carrying equal and opposite currents are twisted together in the construction of a circuit. Why does this technique reduce stray magnetic fields? Please explain for dummies.

The Z-score bankruptcy prediction model uses balance sheet and income information to arrive at a Z-Score, which can be used to predict financial distress: EBIT is earnings before interest and taxes....

=+a. The initial investment b. Operating cash flow c. Terminal cash flow d. Summary of annual cash flow e. Based on their disposable annual income, what advice would you give Antonio and Alessia...

A random variable has probability density function f (x) = c|x|, 2 x 2. The value of c is (a) 1 (b) 2 (c) 4 (d) 12 (e)14

To test H0: = 45 versus H1: 45, a simple random sample of size n = 40 is obtained. (a) Does the population have to be normally distributed to test this hypothesis by using the methods presented in...

Oak Creek Furniture Factory (OCFF), a custom furniture manufacturer, uses job order costing to track the cost of each customer order. On March 1, OCFF had two jobs in process with the following...

NORDIC LIMITED: WORKING CAPITAL AND CAPITAL BUDGETING Nordic Limited commenced operations on 0 1 January 2 0 2 3 . Its mission was to provide an innovative product whilst ensuring creative customer...

The file contains all relevant information that needs to be solved. Risk-Free Assets Assets Portfolio Allocation Expected Rate of Return Expected Standard Deviation T-Bills 20 2.0% 0 Bonds 60 5.0% 15...

A vertical centrifuge, operating at $100 \mathrm{rpm}$, contains an aqueous suspension of solid particles with $S G=1.3$ and radius of $1 \mathrm{~mm}$. When the particles are $10 \mathrm{~cm}$ from...

The rallying cry of Donald Trump in the US presidential election in 2016 was to Make America Great Again and to focus on policies that protected and boosted US jobs and US workers. On election, Mr...

Compute the variance and the ACF (lag-1 to lag-4) of the following ARMA models with $\operatorname{Var}\left(a_{t} ight)=1$ : (a) $z_{t}=0.7 z_{t-1}+a_{t}$; (b) $z_{t}=0.4 a_{t-1}+a_{t}$; (c)...

The optical system of Figure P33.95 consists of a converging lens and a converging mirror. The focal points of the lens are marked by open dots and the center of curvature of the mirror by a solid...

In testing the cash discounts on vendors invoices, the auditor did not expect to find any errors in the sample and therefore used attributes sampling techniques. Based upon the statistical...

Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,000 Training of machine operators 28,000 Processing returned products 19,000 Scrap processing (disposal) 25,000...

One study found that the elderly who do not have children dissave at about the same rate as the elderly who do have children. What might this finding imply about the reason the elderly do not dissave...

What is implementation, and why is it important?

Provide your own examples of five applications of IP.

What is an activity? What is an immediate predecessor?

A $100,000 mortgage at 7.1% compounded semiannually with a 30-year amortization requires monthly payments. How much will the amortization period be shortened if a $10,000 lump payment is made along...

The MacLellans originally chose to make payments of $1600 per month on a $138,000 mortgage written at 7.4% compounded semiannually for the first five years. After three years they exercised their...

The monthly payments on the Wolskis $166,000 mortgage were originally based on a 25-year amortization and an interest rate of 7% compounded semiannually for a five-year term. After two years, they...