1. Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about two days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of five per day (seven days per week). If he currently has 35 chips in inventory and maintains a safety stock of 12 chips, how many should he order? (P model) 2. It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 x 14 BSW. A perpetual inventory system has been used, so you examine this as well as other records and come up with the following data: Because customers generally do not wait for tires but go elsewhere, you decide on a safety stock of 12 units. Assume the demand occurs 365 days per year. a. Determine the optimal order quantity. b. Determine the reorder point. (Qmodel problem) 3. Dunstreet's Department Store would like to develop an inventory ordering policy with a safety stock of 55 units to avoid a potential stock out. Demand for white percale sheets is 3,400 per year. The store is open 365 days per year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 9 days for the sheets to be delivered. There are currently 120 sheets on hand. How manysheets should you order? 4. Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every eight weeks to take orders. Because the orders are shipped directly from Italy, they take seven weeks to arrive. Charlie's Pizza uses an average of 150 pounds of pepperoni each week, with a safety stock of 69 pounds of pepperoni to ensure a 90 percent probability of not stock out on pepperoni. Assume that the sales representative just walked in the door and there are currently 450 pounds of pepperoni in the walk-in cooler. How many pounds of pepperoni would you order? 5. Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Item cost $ 9.00 Standard deviation of weekly demand 30 units Order cost $ 230.00 /order Lead time 3 week Annual holding cost (%) 34 % of item cost Service probability 98 % Annual demand 27,500 units Safety stock 107 units Average demand 550 /week a. Determine the order quantity and the reorder point. b. Determine the annual holding cost and the order cost. 6. 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 supplier who stops by every four weeks. Data for both products are as follows: ITEM TEGDIW WIDGET Annual demand 10,000 5,000 Holding cost (% of item cost) 25 % 30 % Setup or order cost $ 150.00 $ 10.00 Lead time 4 weeks 5 week Safety stock 60 units 8 units Item cost $ 5 $ 4 a. What is the inventory control system for Tegdiws? ai. What's the order quantity? aii. When to reorder (rough estimate)? b. What is the inventory control system for Widgets? (How much to order?)