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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 Optimal reorder quantity Reorder point TEGDIW 10,000 20% $ 150.00 Inventory control system for Widgets q = 4 weeks units 55 $ 10.00 units units WIDGET 5,000 20% $ 25.00 a. What is the reorder quantity and reorder point for Tegdiws? Note: Do not round intermediate calculations. Round your answers to the nearest whole number. 1 week 5 units $ 2.00 b. What is the inventory control system for Widgets? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. -I (Inventory on hand)
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