Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shocking Wires, a local retailer of electrical supplies, faces demand for one of its SKUs at a constant rate of 3 4 comma 0 0

Shocking Wires, a local retailer of electrical supplies, faces demand for one of its SKUs at a constant rate of 34 comma 000 units per year. It costs Shocking Wires $35 to process an order to replenish stock and $2.00 per unit per year to carry the item in stock. Stock is received 15 working days after an order is placed. Assume 365 working days a year and no backordering is allowed.
a. The demand during lead time is
enter your response here units. (Enter your response rounded to the nearest whole number.)
b. The reorder point is
enter your response here units. (Enter your response rounded to the nearest whole number.)
c. Shocking Wires' optimal order quantity is
enter your response here units. (Enter your response rounded to the nearest whole number.)
d. The optimal number of orders per year is
enter your response here orders. (Enter your response rounded to the nearest whole number.)
e. The optimal interval(in working days) between orders is
enter your response here days. (Enter your response rounded to one decimal place.)
f. The inventory position immediately after an order has been placed is
enter your response here units. (Enter your response rounded 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

Strategic management concepts

Authors: Fred david

13th Edition

9780136120988, 136120997, 136120989, 978-0136120995

More Books

Students also viewed these General Management questions