1. What is the difference between P and Q inventory systems?
2. Consider a particular Dubai-based x-ray film dealer supplied by a film manufacturer. Suppose that the manufacturer announces a price increase for a product X-101 from $28/box to $30/box. The dealer uses approximately 80 boxes per year and estimates the fixed cost per order to be $1.50 and the carrying charge as 0.20 $/$/year. Find the economic order quantity after the price rise. What is the impact of increase in unit price from $28/box to $30/box on one-time procurement quantity?
3. Item MTX is being managed using a fixed-order quantity model with safety stock. The annual demand for MTX is 1000 units and order quantity are 300 units. If the management decides to keep a safety stock of 40 units, determine the average inventory level and inventory turn for item MTX.
4. A firm wishes to allocate a fixed amount of safety stock among a number of products to keep the total value of backorders per year as low as possible. Management feels that it is reasonable to use a specified fractional charge (B₂) value of 0.25; that is, each unit short incurs a cost equal to 25% of its unit value. The replenishment quantity of an item under consideration has been predetermined at 85 units. This value is determined from annual demand of 200, a fixed order cost of $21.50, a carrying charge of 20%, and a unit cost of $6. Given that forecast (or expected) demand over a replenishment lead time in units ()=50 units and the standard deviation of errors of forecasts over a replenishment lead time in units ()=10 units. What is the expected total cost of this policy?
5. How can RFID technology be used for inventory management?

1. What is the difference between P and Q inventory systems? 2. Consider a particular Dubai-based x-ray film dealer supplied by a film manufacturer. Suppose that the manufacturer announces a price increase for a product X-101 from $28/ box to $30/ box. The dealer uses approximately 80 boxes per year and estimates the fixed cost per order to be $1.50 and the carrying charge as 0.20$/$/year. Find the economic order quantity after the price rise. What is the impact of increase in unit price from $28/ box to $30/ box on one-time procurement quantity? 3. Item MTX is being managed using a fixed-order quantity model with safety stock. The annual demand for MTX is 1000 units and order quantity are 300 units. If the management decides to keep a safety stock of 40 units, determine the average inventory level and inventory turn for item MTX. 4. A firm wishes to allocate a fixed amount of safety stock among a number of products to keep the total value of backorders per year as low as possible. Management feels that it is reasonable to use a specified fractional charge (B2) value of 0.25 ; that is, each unit short incurs a cost equal to 25% of its unit value. The replenishment quantity of an item under consideration has been predetermined at 85 units. This value is determined from annual demand of 200 , a fixed order cost of $21.50, a carrying charge of 20%, and a unit cost of $6. Given that forecast (or expected) demand over a replenishment lead time in units (x^L)=50 units and the standard deviation of errors of forecasts over a replenishment lead time in units (L)=10 units. What is the expected total cost of this policy