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KraftyCity is a large retailer that sells power tools and other hardware supplies. One of its products is the KraftyMan workbench. Information on the workbench
KraftyCity is a large retailer that sells power tools and other hardware supplies. One of its products is the KraftyMan workbench. Information on the workbench is as follows. Annual demand = 1,650 Holding cost = $18 Ordering cost = $220 Click the icon to view the table of z values. a. What is the economic order quantity for the workbench? The EOQ is 201. (Enter your response rounded to the nearest whole number.) b. Suppose that KraftyCity has to pay $70 per workbench for orders under 220 but only $63 per workbench for orders of 221 or more. What order quantity should KraftyCity use? KraftyCity should order 220 workbenches at a time. (Enter your response rounded to the nearest whole number.) c. The lead time for KraftyCity workbenches is 2 weeks, with a standard deviation of 0.7 weeks, and the average weekly demand is 32, with a standard deviation of 6 workbenches. What should the reorder point be if KraftyCity wants to provide a 99% service level? The reorder point is workbenches. (Enter your response rounded to the nearest whole number) Enter your answer in the answer box and then click Check Answer. z value Associated service level 0.84 1.28 1.65 2.33 3.08 80% 90% 95% 99% 99.9%
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