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6 . Demand for a popular dress shirt at a Brooks Brothers distribution center ( DC ) is normally distributed with a mean of 8

6. Demand for a popular dress shirt at a Brooks Brothers distribution center (DC) is normally distributed with a mean of 81 units/day and standard deviation of 27 units/day. Brooks Brothers orders the shirts at a unit cost of $28. The annual cost of carrying inventory at the DC is 39% of the purchase cost per unit per year. It takes 12 days to receive a delivery. The DC reviews its inventory continuously. Assume 52 weeks/year,7 days/week and 364 days/year.
Compute the reorder point required to maintain a cycle service level of 98%.
Carry your calculations to at least 3 decimal places.
Round your answer to the nearest tenth of a unit (one decimal place).
7. Demand for a popular dress shirt at a Brooks Brothers distribution center (DC) is normally distributed with a mean of 74 units/day and standard deviation of 18 units/day. Brooks Brothers orders the shirts at a unit cost of $43. The annual cost of carrying inventory at the DC is 44% of the purchase cost per unit per year. It takes 32 days to receive a delivery. The DC reviews its inventory continuously. Assume 52 weeks/year,7 days/week and 364 days/year.
Compute the safety stock required to maintain a cycle service level of 98%.
Carry your calculations to at least 3 decimal places.
Round your answer to the nearest tenth of a unit (one decimal place).
8. Demand for a popular dress shirt at a Brooks Brothers distribution center (DC) is normally distributed with a mean of 97 units/day and standard deviation of 17 units/day. Brooks Brothers orders the shirts at a unit cost of $38. The annual cost of carrying inventory at the DC is 30% of the purchase cost per unit per year. It takes 13 days to receive a delivery. The DC reviews its inventory continuously. Assume 52 weeks/year,7 days/week and 364 days/year.
Suppose that Brooks Brothers is considering a new third-party logistics provider (3PL) that promises a lead time of 3 days.
Compute the associated savings in the annual holding cost of the safety stock (in $) needed to maintain a cycle service level of 98%.
Carry your calculations to at least 3 decimal places.
Round your answer to the nearest tenth of a unit (one decimal place).
9. Demand for a popular hospital bed from a Hill-Rom warehouse in the US is normally distributed with a mean of 431 units/week and standard deviation of 81 units/week. Lately, Hill-Rom\'s contract manufacturer has been unreliable with its deliveries. Hill-Rom estimates the lead time is normally distributed with a mean of 5 weeks and standard deviation 3 weeks. Hill-Rom orders the beds at a unit cost of $1,294. The annual cost of carrying inventory at the warehouseis 27% of the purchase cost per unit per year. Hill-Rom reviews its inventory continuously. Assume the warehouse operates 52 weeks/year,7 days/week, and 364 days/year.
Compute the safety stock required to maintain a service level of 92%.
Carry calculations to at least 3 decimal places.
Round your answer to the nearest tenth of a dollar (one decimal place).
10. Demand for a popular hospital bed from a Hill-Rom warehouse in the US is normally distributed with a mean of 351 units/week and standard deviation of 91 units/week. Lately, Hill-Rom\'s contract manufacturer has been unreliable with its deliveries. Hill-Rom estimates the lead time is normally distributed with a mean of 5 weeks and standard deviation 2 weeks. Hill-Rom orders the beds at a unit cost of $2,038. The annual cost of carrying inventory at the warehouseis 18% of the purchase cost per unit per year. Hill-Rom reviews its inventory continuously. Assume the warehouse operates 52 weeks/year,7 days/week, and 364 days/year.
Compute the reorder point required to maintain a service level of 92%.
Carry calculations to at least 3 decimal places.
Round your answer to the nearest tenth of a dollar (one decimal place).
11. Demand for a popular hospital bed from a Hill-Rom warehouse in the US is normally distributed with a mean of 290 units/week and standard deviation of 75 units/week. Lately, Hill-Rom\'s contract manufacturer has been unreliable with its deliveries. Hill-Rom estimates the lead time is normally distributed with a mean of 6 weeks and standard deviation 2 weeks. Hill-Rom orders the beds at a unit cost of $1,792. The annual cost of carrying inventory at the warehouseis 26% of the purchase cost per unit per year. Hill-Rom reviews its inventory continuously. Assume the warehouse operates 52 weeks/year,7 days/week, and 364 days/year.
Suppose that Hill-Rom works with its contract manufacturer to improve reliability in the supply chain such that lead times are guaranteed at 6 weeks.
Compute the savings in annual holding cost of the safety stock (in $) needed to maintain a service level of 92%.
Carry calculations to at least 3 decimal places.
Round your answer to the nearest tenth of a dollar (one decimal place).

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