2. A grocery store sells 100 bottles of coke a week. Annual holding cost per bottle...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. A grocery store sells 100 bottles of coke a week. Annual holding cost per bottle is $1. Ordering cost is $20 per order. Assume 52 weeks per year. (Round your answers to 2 decimal places.) a. (5 pts) How many bottles of coke should the store order for each order? b. (3 pts) How many times per year should the store place an order? c. (2 pts) How many weeks will elapse between two consecutive orders? d. (3 pts) Calculate the total annual cost of placing orders and holding inventory. e. (7 pts) It takes 3 weeks to receive the bottles of coke after placing an order. Assume that the weekly demand is normally distributed with mean 100 and standard deviation 20. Calculate the reorder point to achieve the service level of 90% during the lead time. f. (5 pts) The demand distribution is the same as in part e. Suppose that the lead time is 4 weeks. If the store wishes to carry no safety stock, what should the reorder point be? 2. A grocery store sells 100 bottles of coke a week. Annual holding cost per bottle is $1. Ordering cost is $20 per order. Assume 52 weeks per year. (Round your answers to 2 decimal places.) a. (5 pts) How many bottles of coke should the store order for each order? b. (3 pts) How many times per year should the store place an order? c. (2 pts) How many weeks will elapse between two consecutive orders? d. (3 pts) Calculate the total annual cost of placing orders and holding inventory. e. (7 pts) It takes 3 weeks to receive the bottles of coke after placing an order. Assume that the weekly demand is normally distributed with mean 100 and standard deviation 20. Calculate the reorder point to achieve the service level of 90% during the lead time. f. (5 pts) The demand distribution is the same as in part e. Suppose that the lead time is 4 weeks. If the store wishes to carry no safety stock, what should the reorder point be?
Expert Answer:
Posted Date:
Students also viewed these general management questions
-
Please Read Carefully Before start answering this question. Please follow the instructions. This Question is from 'BSBFIM501 Manage budgets and financial plans' course. There are no parts missing for...
-
Your company receives 40 excess copies of a book. You plan to sell these books in two markets: directly in the store or sell them on eBay. Here are the two demand equations: Store Demand: Ps = 200 -...
-
An appointment has been made for the manager of your taxation department to meet the representative of a French Multinational company who is visiting Malaysia. The French Multinational company has...
-
Calculate investment balance four years after acquisition Ray Corporation owns a 40 percent interest in the outstanding common stock of Ton Corporation, having acquired its interest for $2,400,000 on...
-
As you learned in Chapter 17, the Du Pont return on investment formula calculates return on investment (return on assets) using return on sales and asset turnover. Using the following information,...
-
Researchers asked 150 subjects to recall the details of a car accident they watched on video. Fifty subjects were randomly assigned to be asked, About how fast were the cars going when they smashed...
-
Tim Sanderson has the following balance sheet as at 30 November 20-8: LO6 Balance Sheet as at 30 November 20-8 Assets Liabilities Motor vehicle 8,000 Capital 13,750 Stock of goods 700 Creditors...
-
The duller Edge Inc. assembles and sells MP3 players. The company began operations on May 1, 2012, and operated at 100 % of capacity during the first month. The following data summarize the results...
-
What at three most important points should you, the defendant, include in your opening statement ? State Briefly why they are important to your case? Fremont v. Dooley Arthur Dooley, a tenant in a...
-
Consider the function: W) = \"1/06 + 2) The third-order Taylor approximation at the point x=0 is {round answers to two decimal points): a: + x+ x2+
-
Salinger Company estimates that total factory overhead costs will be $70,000 for the year. Direct labor hours are estimated to be 10,000. a. For Salinger Company, determine the predetermined factory...
-
SCS receives on average 1 data package every 1/50 seconds, with a standard deviation of 1/50 seconds, and processes them using its single powerful computing unit, which can process data packages in...
-
Suppose that we pay workers $25 per day.We value processed orders at $4 per order and the number of orders each worker can process is worker 1 - 8 orders, worker 2 - 7 orders, worker 3 - 6 orders,...
-
How do I imagine that I am the administrator of a midsize long-term care facility with an outdated information system and I have been given thetaskto planand managethe integration of a new database...
-
You are negotiating a five - year contract with a new customer. The contract could be larger than any previous contracts your company has had. Which would be your best negotiation style?
-
Do you agree that true innovation can only come from a small group of dedicated professionals? Which of the four kinds of PMOs described in the chapter does Telstra's PMO appear to be? How important...
-
The diameter of a sphere is 18 in. Find the largest volume of regular pyramid of altitude 15 in. that can be cut from the sphere if the pyramid is (a) square, (b) pentagonal, (c) hexagonal, and (d)...
-
Why should upper-level managers be included in the needs assessment process?
-
Explain the process you would use to conduct a root cause analysis of a performance problem.
-
Assume that you have to prepare older employees with little computer experience to attend a training course on how to use the Internet. How will you ensure that they have high levels of readiness for...
Study smarter with the SolutionInn App