Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A product sold in a retail store has an annual demand of 76,800 units. This product has been purchased by the store for R $

A product sold in a retail store has an annual demand of 76,800 units. This product has been purchased by the store for R $ 10.00 / unit. The store works, on average, 300 days a year. Recently the new operations manager ran two simulations to try to find the economical lot for purchasing the product. In a first simulation he found a total cost of R $ 778,680.00, when he imagined a batch of 3,000 units per order. In a second attempt he found a total cost of R $ 777,840.00, when he estimated a batch of 6,000 units per order. Based on these data, he submitted the matter to his appreciation by asking whether the 3,000 unit lot was the economic lot. This product has a delivery time of 10 days and the store's operations manager has maintained a safety stock corresponding to 25% of the quantity corresponding to the economic purchase lot. On the other hand, two systems are also being studied to replenish the stock of this product: the fixed quantity system (continuous review system) and the periodic replacement system. Taking this information into account, define: The. The economic purchase lot and the respective total cost of this system. B. If the operations manager decides to adopt the fixed quantity replacement system: a. What will be the quantity that must be replenished each time? . What is the order point that will signal the need to process a new order? d. If, on the other hand, the manager decides to opt for the periodic replacement system, having decided to review the stock every 20 days. What will be the maximum theoretical stock expected? and. If the stock level at the time of the periodic review was 3,000 units and there were still 1,080 units ordered and not yet received, what is the quantity to be ordered?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trust Me Im Almost An Auditor

Authors: Lily Hazelwood

1st Edition

1791960405, 978-1791960407

More Books

Students also viewed these Accounting questions

Question

8. Someone who is the youngest in the family

Answered: 1 week ago

Question

Develop clear policy statements.

Answered: 1 week ago

Question

Draft a business plan.

Answered: 1 week ago

Question

Describe the guidelines for appropriate use of the direct plan.

Answered: 1 week ago