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1. Tax Preparers Inc. works 280 days per year. The company uses adding machine tape at a rate of 5 rolls per day. Usage is
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Tax Preparers Inc. works 280 days per year. The company uses adding machine tape at a rate of 5 rolls per day. Usage is believed to be normally distributed with a standard deviation of 3 rolls during lead time. The cost of ordering the tape is $18 and holding costs are $0.21 per roll per year. Lead time is 2 days. (a) Calculate the economic order quantity. (Round up your answer to the nearest whole number, e.g. 125.) (b) What reorder point will provide an order cycle service level of 97 percent? (Round up your answer to the nearest whole number, e.g. 125.) 16 tapes (c) How much safety stock must the company hold to have a 97 percent order-cycle service level? (Round up your answer to the nearest whole number, e.g. 125.) 6 units (d) What reorder point is needed to provide an order-cycle service level of 99 percent? (Round up your answer to the nearest whole number, e.g. 125.) 17 tapes (e) How much safety stock must the company hold to have a 99 percent order-cycle service level? (Round up your answer to the nearest whole number, e.g. 125.) 7 unitsA local nursery, Greens, uses 1.840 bags of plant food annually. Greens works 52 weeks per year. It costs $12 to place an order for plant food. The annual holding cost rate is $7 per bag. Lead time is one week. V Your answer is correct. Calculate the economic order quantity. (Round your answer to 1 decimal place, e3.,50.2} Economic order quantity = 794 units Attempts: 2 of 3 used (b) Calculate the total a nnual costs. [Round your answer to 2 decimal places, eg.,50.12. Do not round intermediate results used to achieve this answer.) Total annual costs = 35 Save for Later Attempts: 0 0f 3 USEd Submit Answer (C) The parts of this question must be completed in order. This part will be available when you complete the part aboveStep by Step Solution
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