After analyzing the costs of various options for obtaining brackets, Ross White $($see Problems $6\mathrm{.}27$ through $6\mathrm{.}29)$ recognizes that although he knows that lead time is $2$ days and demand per day averages $10$ units, the demand during the lead time often varies. Ross has kept very careful records and has determined lead time demand is normally distributed with a standard deviation of $1\mathrm{.}5$ units. $($a$)$ What Z value would be appropriate for a $98\%$ service level? $($b$)$ What safety stock should Ross maintain if he wants a $98\%$ service level? $($c$)$ What is the adjusted ROP for the brackets? $($d$)$ What is the annual holding cost for the safety stock if the annual holding cost per unit is $$1\mathrm{.}50?$ Reference Problem $6-29$: Upon hearing that Ross White $($see Problems $6-27$ and $6-28)$ is considering producing the brackets inhouse, the vendor has notified Ross that the purchase price would drop from $$15$ per bracket to $$14\mathrm{.}50$ per bracket if Ross will purchase the brackets in lots of $1,000.$ Lead times, however, would increase to $3$ days for this larger quantity. $($a$)$ What is the total annual inventory cost plus purchase cost if Ross buys the brackets in lots of $1,000$ at $$14\mathrm{.}50$ each? $($b$)$ If Ross does buy in lots of $1,000$ brackets, what is the new ROP? $($c$)$ Given the options of purchasing the brackets at $$15$ each, producing them in$-$house at $$14\mathrm{.}80,$ and taking advantage of the discount, what is your recommendation to Ross White? Reference Problem $6-28$ Rose Whittoon Problem Rozwonte tacacancidochie darinianatharina thabrackote anda ch$($b$)$ If Ross does buy in lots of $1,000$ brackets, what is the new ROP? $($C$)$ Given the options of purchasing the brackets at $$15$ each, producing them in$-$house at $$14\mathrm{.}80,$ and taking advantage of the discount, what is your recommendation to Ross White? Reference Problem $6-28$: Ross White $($see Problem $6-27)$ wants to reconsider his decision of buying the brackets and is considering making the brackets in$-$house. He has determined that setup costs would be $$25$ in machinist time and lost production time, and $50$ braskets could be produced in a day once the machine has been set up$.$ Ross estimates that the cost $($including labor time and materials$)$ of producing one bracket would be $$14\mathrm{.}80.$ The holding cost would be $10\%$ of this cost. $($a$)$ What is the daily demand rate? $($b$)$ What is the optimal production quantity? $($c$)$ How long will it take to produce the optimal quantity? How much inventory is sold during this time? $($d$)$ If Ross uses the optimal production quantity, what would be the maximum inventory level? What would be the average inventory level? What is the annual holding cost? $($e$)$ How many production runs would there be each year? What would be the annual setup cost? $(1)$ Given the optimal production run size, what is the total annual inventory cost? $($g$)$ If the lead time is one$-$half day, what is the ROP? Reference Problem $6-27$: Ross White's machine shop uses $2,500$ brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier $100$ miles away for $$15$ each, and the load time is $2$ days. The holding cost per bracket per year is $$1\mathrm{.}50$ Inolta archChapter $6,$ Problem $28$P Bookmark Show all steps: ON w were verwyo wery VEVCH M a rrunty wall $($o$)$ How many production runs would there be each year? What would be the annual setup cost? $($f$)$ Given the optimal production run size, what is the total annual inventory cost? $($g$)$ If the lead time is one$-$half day, what is the ROP? Reference Problem $6-27$: Ross White's machine shop uses $2,500$ brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier $100$ miles away for $$15$ each, and the lead time is $2$ days. The holding cost per bracket per year is $$1\mathrm{.}50($or $10\%$ of the unit cost$)$ and the ordering cost per order is $$18\mathrm{.}75.$ There are $250$ working days per year. $($a$)$ What is the EOQ? $($b$)$ Given the EOQ, what is the average inventory? What is the annual inventory holding cost? $($c$)$ in minimizing cost, how many orders would be made each year? What would be the annual ordering cost? $($d$)$ Given the EOQ, what is the total annual inventory cost $($including purchase cost$)?($e$)$ What is the time between orders? $(1)$ What is the ROP? Step$-$by$-$step solution ch