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Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the
Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every three weeks. Data for both products are as follows:
ITEM Annual demand Holding cost (% of item cost) Setup or order cost Lead time Safety stock Item cost TEGDIW 11,000 30% $170.00 8 weeks 40 units $15 WIDGET 9,000 20% $20.00 2 weeks 9 units $6 a. What is the reorder quantity and reorder point for Tegdiws? (Round your answers to the nearest whole number.) Optimal reorder quantity Reorder point units units b. What is the inventory control system for Widgets? (Round your answer to the nearest whole number.) Inventory control system for Widgets q = - 1 (Inventory on hand)Step by Step Solution
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