Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Question 18 (12 points) You are an operations manager for Bay Blades Inc. This company sells specialty blades for cutting different types of stone used
Question 18 (12 points) You are an operations manager for Bay Blades Inc. This company sells specialty blades for cutting different types of stone used for landscaping. The Vice President has asked you to review the inventory situation to see if the company is operating at an optimal level. Bay Blades Inc. buys all of its A55-Diamond Blades from a producer in Germany. The inventory data that you collected was: Stone Cutting Blade Sales in Units 50 per Year A55 Diamond Blades in Inventory: 85,000 Selling Weeks per Year: 9,000 Lead Time from Germany in Weeks: Recommended Safety Stock in $10,750,000 Units $110 Annual COGS 350 Inventory Investment: $42,500,000 Order Cost/Order Yearly Holding Cost/Unit: $9 Formulas ROP ddLT + SS Inventory Turns - Cost of Goods Sold / Inventory Value Weeks Supply = Inventory Value / Average Weekly EOQ - sqrt(2DS/H) COGS OR=# Weeks / Turns Please show all your work. Answer all 4 questions in the box below. a) What quantity should be ordered each time? (4 marks) b) Calculate Reorder Point (3 marks) c) Calculate Weeks of Supply (2 marks) d) Given the information above, is Bay Blades Inc, managing their cutting blades inventory well? Justify your answer with specific recommendations
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e23450be49_748669e2344a46ce.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669e2345a0716_749669e23453ee51.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
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](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started