Name: 12 (OE) (Best Buy 01 Part A)* How many printers should be ordered at a time? (Show calculations.) A) 510 D) 410 E) 442 B) 342 C) 542 (Best Buy 01 Part B) Annual demand for HP printers at a Best Buy store is 7800. The unit cost is $200, the holding cost for a printer is 20 % of the unit cost and it costs $500 to place an order. The unit time is 1 week and it takes 2 weeks till the printers are delivered. The store manager now finds that the weekly demand is normally distributed with a mean of 150 and a standard deviation of 100. She is targeting a service level of 97.73% The store should place an order when the on-hand inventory reaches 13 (OE) (Best Buy 01 Part B) ("Show calculations.) B) 483 A) 683 C) 383 E) 783 D) 583 14 OE] (Best Buy 01 Part B) The store holds an average inventory of ("Show calculations.) A) 645 D) 504 B) 538 C) 221 E) 255 15 [OESQ] (Inventory Turnover 01) and days of supply (*Discuss briefly why.) A) increases, decreases B) decreases, increases As a supply chain holds more inventory, inventory turnover C) increases, increases D) decreases, decreases 16 [OESQ] (Transportation Cost 01) As transportation cost increases, order quantity (lot size) order frequency (*Discuss briefly why.) A) increases, decreases B) increases, increases and C) decreases, decreases D) decreases, increases 17 (OE] (Walmart 1) without increasing transportation costs. A) Specialization B) Inventory aggregation is the most effective for reducing cycle inventory in a distribution center (DC) C) Substituion D) Cross docking Name: 12 (OE) (Best Buy 01 Part A)* How many printers should be ordered at a time? (Show calculations.) A) 510 D) 410 E) 442 B) 342 C) 542 (Best Buy 01 Part B) Annual demand for HP printers at a Best Buy store is 7800. The unit cost is $200, the holding cost for a printer is 20 % of the unit cost and it costs $500 to place an order. The unit time is 1 week and it takes 2 weeks till the printers are delivered. The store manager now finds that the weekly demand is normally distributed with a mean of 150 and a standard deviation of 100. She is targeting a service level of 97.73% The store should place an order when the on-hand inventory reaches 13 (OE) (Best Buy 01 Part B) ("Show calculations.) B) 483 A) 683 C) 383 E) 783 D) 583 14 OE] (Best Buy 01 Part B) The store holds an average inventory of ("Show calculations.) A) 645 D) 504 B) 538 C) 221 E) 255 15 [OESQ] (Inventory Turnover 01) and days of supply (*Discuss briefly why.) A) increases, decreases B) decreases, increases As a supply chain holds more inventory, inventory turnover C) increases, increases D) decreases, decreases 16 [OESQ] (Transportation Cost 01) As transportation cost increases, order quantity (lot size) order frequency (*Discuss briefly why.) A) increases, decreases B) increases, increases and C) decreases, decreases D) decreases, increases 17 (OE] (Walmart 1) without increasing transportation costs. A) Specialization B) Inventory aggregation is the most effective for reducing cycle inventory in a distribution center (DC) C) Substituion D) Cross docking
