Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)
image text in transcribed
Jili'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: 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. b. What is the inventory control system for Widgets? Note: Do not round intermediate calculations. Round your answer to the 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

More Books

Students also viewed these General Management questions

Question

What are four reasons to be cautious about nudges?

Answered: 1 week ago

Question

Outline Platos conflict model of mental disorders.

Answered: 1 week ago

Question

Conduct an effective performance feedback session. page 376

Answered: 1 week ago