A company normally orders the EOQ of 120 units and the reorderpoint is 30 units. However, due to changing conditions, it has become necessary for the company to carry safety stock to prevent stock outs. Which of the following should occur?
a. the order quantity will increase.
b. the order quantity will decrease.
Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplie
A bakery uses 700 bags of flour per week and works 45 weeks per year. The flour costs $25 per bag. Each time that order is issued it will cose the bakery $100. Carrying costs of the inventory are 15% of unit costs. Determine the economic order quantity, reorderpoint, and the average inventory for this bakery.
A company is studying the inventory stocking policy for a product (#A123). The company uses a fixed-order quantity system to manage inventory. Demand per day is normally distributed with a demand per day of 210 and a standard deviation of 5 per day. Based on historical lead time of 4 days the current reorderpoint is set at 85
Annual demand for the notebook binders at Duncan's Stationery Shop is 10,500 units.
Dana Duncan operates her business 300 days per year and finds that deliveries from her supplier generally take 21 working days. Calculate the reorderpoint for the notebook binders that she stocks.
Round your answer to the nearest whole n
The Super Discount store (open 24 hours a day, every day) sells 8-packs of paper towels, at the rate of approximately 420 packs per week. Because the towels are so bulky, the annual cost to carry them in inventory is estimated at $.50 per pack. The cost to place an order for more is $20 and it takes four days for an order to arr
A distributor of large appliances needs to determine the order quantities and
reorderpoints for the various products it
carries. The following data refer to a
The president of the wholesale distributor is concerned about the possibility of stockouts causing a loss of customer confidence and loyalty and is interested in maintaining safety stock in inventory to prevent potential stockouts.
Assuming demand is normally distributed with a mean of 15 units and a standard deviation of 3