The manufacturer uses ROP method to control the inventory of this item. The manufacturer operates 52...
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The manufacturer uses ROP method to control the inventory of this item. The manufacturer operates 52 weeks a year. a What is the economic order quantity? b. What is the reorder point? c. What's the expected number of units out of stock annually? d. What is the annual service level? e. What's the total annual cost including annual fixed ordering cost, inventory holding cost, and stockout cost? f. If the lead time is normally distributed with a standard deviation of 0.5 weeks, what's the ROP? Problem 3. (Chapter 9: Inventory Policy Decisions) Suppose that an auto part in a manufacturer's inventory has the following characteristics: Forecast of demand Forecast error, std. dev. Lead time Carrying cost Purchase price, delivered Replenishment order cost - 900 cases per week -125 cases per week -4 weeks -30% per year = $60 per case $40 per order -$10 per case Stockout cost Probability of being in stock during the lead time -85% The manufacturer uses ROP method to control the inventory of this item. The manufacturer operates 52 weeks a year. a What is the economic order quantity? b. What is the reorder point? c. What's the expected number of units out of stock annually? d. What is the annual service level? e. What's the total annual cost including annual fixed ordering cost, inventory holding cost, and stockout cost? f. If the lead time is normally distributed with a standard deviation of 0.5 weeks, what's the ROP? Problem 3. (Chapter 9: Inventory Policy Decisions) Suppose that an auto part in a manufacturer's inventory has the following characteristics: Forecast of demand Forecast error, std. dev. Lead time Carrying cost Purchase price, delivered Replenishment order cost - 900 cases per week -125 cases per week -4 weeks -30% per year = $60 per case $40 per order -$10 per case Stockout cost Probability of being in stock during the lead time -85%
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Answer rating: 100% (QA)
a Economic Order Quantity EOQ EOQ 2900403060 EOQ 1440018 EOQ 48 cases b Reorder Point ROP ROP Lead T... View the full answer
Related Book For
Business Logistics Supply Chain Management
ISBN: 978-0130661845
5th edition
Authors: Ronald H. Ballou
Posted Date:
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