7. Lieutenant Commander Choudhary is planning to make his monthly (every 30 days) trek to Gamma #tydha City to pick up a supply of isolinear chips: The trip will take Choudhary about two days. Before be leaves, he calls in the order to the CHIC Supply Store. YA yes chips at an average rate of five per day (seven days per week) with a standard deviation of demand of one per day. The needs a 98 percent service probability. Iff hire cufffailyy has, 35 chips in inventory, how many should be order? What is the test he will ever have to order? S. Jill's Job Shop boys two parts (Tegliws and Widgets) for use in its ProduHim yifan fist two different suppliers. The parts are needed throughout the entire 32-week year, Feedinws affe 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 three weeks. Bata for both products are as follows: ITEM TEGDIW WIDGET Appual demand 10 040 5000 Holding cost (X of item cost! 20% 20% Set-up or order cost $150.90 $2500 Lead time 4 weeks 1 week Safetyy stockk 55 units 5 units Item cost $10.90 $2:00 4. What is the inventory control system for Tegeiws? That us, What is the feeder quantifly and what is the reorder poffty b. What is the inventory control system for Widgets? 9. Demand for an item is 1000 units per year Each order placed costs $10: the annual cost to carry items in inventory is $2 each. In what quantities should the item be ordered? 10. The annual demand for a product is 15 600 units: The weekly demand is 30% units with a standard deviation of 90 units: The east to place an order is $31:20, and the tithe froth ordering to receipt is four weeks, The annual inventory carrying cost is $0:10 per unit. Find the reorder point necessary to provide a 98 percent service probability. Suppose the production manager is asked to reduce the safety stock of this item by 30 per- cent. If she does so, what will the new service probability be? 11. Daily demand for a product is 100 units, with a standard deviation of 35 units. The Crew period is 10 days and the lead time is 6 days: At the time of review there are 50 units in stock. If 98 percent service probability is desired, how many units should be ordered? 12. Item X is a standard item stocked in a company's whichtory of component parts. Soft year, thie firm, on a random basis, uses about 2900 of item X, Which costs $25 each: Storage costs; Which include insurance and cost of capital, amount to $5 per unit of average inventory. Every tithe am order is placed for more item *; it costs $10. 4. Whenever item X is ordered, what should the order size be? b. What is the annual cost for ordering item ? e. What is the annual cost for storing item X? 13. Annual demand for a product is 13 909 units; weekly demand is 250 units: with a standard deviation of 40 units. The cost of placing an order is $100; and the time from ordering to receipt is four weeks. The annual inventory canying east is $0.65 per unit: To provide a 98 percent service probability, what must the reorder peith be? Suppose the production manager is told to reduce the safety stock of this item By 160 units: If this is dope, what will the new service probability be? 14. In the past, Taylor Industries has used a fixed=time period inventory systemh that invoked talking a complete inventory count of all items each month. However mereasing labour costs are ffft- ing Taylor Indiestries to examine alternative ways to reduce the athout of labour TwiNed it inventory stockroom's. yet without increasing other costs: such as shortage costs. Here is a random sample of 20 of Tarylee'sgiffthis