Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Crew Soccer Shoes Company is considering a change of their current inventory - control system for soccer shoes. The information regarding the shoes is given

Crew Soccer Shoes Company is considering a change of their current inventory-control system for soccer shoes. The information regarding the shoes is given below:
Demand =80 pairs/week
Lead time = three weeks
Order cost = $25/order
Holding cost = $3.00/pair/year
Cycle service level =90 percent
Standard deviation of weekly demand =40
Number of weeks per year =52
The company decides to use a fixed-order quantity system. What would be the reorder point and the economic order quantity? Round your answers to the nearest whole number.
Economic order quantity:
units
Reorder point:
units
In this system, at the beginning of the current week, the materials manager, Luke Thomas, checked the inventory level of shoes and found 400 pairs. There were no scheduled receipts and no back orders. Should he place an order? Explain your answer.
Since the inventory level of 400 pairs is
-Select-
than the reorder point, Emily
-Select-
place an order.
If the company changes to a fixed-period system and reviews the inventory every two weeks (T =2), how much safety stock is required? Round your answer to the nearest whole number.
units

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

Step: 3

blur-text-image

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

Natural Resource Management Reimagined

Authors: Robert G. Woodmansee

1st Edition

1108740138, 978-1108740135

More Books

Students also viewed these General Management questions

Question

How flying airoplane?

Answered: 1 week ago