Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HomeCraft is a large retailer that sells power tools and other hardware supplies. One of its products is the KraftyMan workbench. Lead time for KraftyCity

HomeCraft is a large retailer that sells power tools and other hardware supplies. One of its products is the KraftyMan workbench. Lead time for KraftyCity workbenches is 3 weeks, with a standard deviation of 1.2 weeks, and the average weekly demand is 24, with a standard deviation of 8 workbenches. Assume 50 weeks per year. Holding cost = $15 per workbench per year Ordering cost = $200 per order a) What is the EOQ? Round to nearest whole number. 179 b) What should the reorder point be if KraftyCity wants to provide a 95% service level? Round to nearest whole number

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

Ethics in Information Technology

Authors: George Reynolds

5th edition

1285197151, 9781305142992 , 978-1285197159

More Books

Students also viewed these General Management questions

Question

=+j Describe the growth and spread of internationalization.

Answered: 1 week ago