Question
A jewelry manufacturer is creating a routine order schedule for some new products: Kangaroo and Zebra. Kangaroo can be ordered any time. Zebra is set
A jewelry manufacturer is creating a routine order schedule for some new products: "Kangaroo" and "Zebra". Kangaroo can be ordered any time. Zebra is set up to be ordered 1 time every 4 weeks. The company is closed 2 weeks out of a 52 week year otherwise it is open. Given the following, show me the calculation (The final answers are provided) for the questions at the end: Kangaroo's acceptable stockout risk = 2.5%, lead time = 2 weeks, ordering cost =$70, annual holding cost = 30%, unit cost =$15, standard deviation = 4 units per week, and average weekly demand is 60 units. Zebra's acceptable stockout risk = 2.5%, lead time = 2 weeks, ordering cost =$30, annual holding cost = 30%, unit cost =$20, standard deviation = 5 units per week, and average weekly demand is 70 units. The reorder point is known to be at 153 units on hand for the Zebra 1) Show me the math to come up with the 153 units answer. 2) What is the reorder point for the Kangaroo? (The answer is known to be 306 units so show me the calculation), 3) If the Zebra has 110 units on hand, what is the order quantity (The answer is known to be 334 units), please show me the calculation?
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