Inventory Management
Not what you're looking for?
A store has collected the following information on one of its products (10 pts):
Demand = 10,000 units/year
Standard deviation of weekly demand = 25 units
Ordering costs = $30/order
Holding costs = $4/unit/year
Cycle-service level = 95% (z for 90% = 1.28)
Lead time = 2 weeks
Number of weeks per year = 50 weeks
a.If a firm uses the continuous review system to control the inventory, find the following:
Economic Order Quantity (EOQ):
Appropriate Safety Stock:
Reorder Point:
Annual Order Costs:
Annual Holding Costs:
Total Annual Costs (including safety stock):
b.If the firm decided to change to the periodic review system to control the item's inventory, find the following:
Review Interval (Time Between Orders):
Appropriate Safety Stock:
Target Inventory Level:
Annual Order Costs:
Annual Holding Costs:
Total Annual Costs (including safety stock):
Purchase this Solution
Solution Summary
Solution contains calculations of Economic Order Quantity (EOQ), appropriate Safety Stock, reorder Point, annual Order Costs, annual Holding Costs and total Annual Costs (including safety stock):
Purchase this Solution
Free BrainMass Quizzes
Lean your Process
This quiz will help you understand the basic concepts of Lean.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.