Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

M . 6 5 Boeing orders a small part ( component ) used in many of its wing assemblies. Below is some information on this

M.65 Boeing orders a small part (component) used in many of its wing assemblies. Below is some information on this part:
Cost per case = $415
Parts per case =60
Daily usage of parts per day (demand)=49
Standard deviation of daily demand =13
Purchasing lead time (in days)=20
Desired service level =86%
Ordering (administrative) costs = $440
Annual interest earned on cash =6%
Assume that Boeing operates 365 days per year
What should be the safety stock for this part (in parts, not cases)?(Display your answer to two decimal places.)
What should be the reorder point (in parts, not cases)?(Display your answer to two decimal places.)
What is the economic order quantity (in parts, not cases)?(Display 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 with AI-Powered 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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

9781285586618

Students also viewed these General Management questions