Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information is available for a firm: Demand = 300 units/week Standard deviation of weekly demand = 35 units Ordering costs = $80

image text in transcribed

The following information is available for a firm: Demand = 300 units/week Standard deviation of weekly demand = 35 units Ordering costs = $80 / order Holding costs = $2 / unit / year Service level = 99% (Z value = 2.33) Lead-time = 4 weeks Number of weeks per year = 52 1. How frequently (approximate time between orders in weeks) should orders be placed if EOQ strategy is used? (15%) 2. What is the safety stock this firm is supposed to carry? (10%) 3. Today you are reviewing the stock for this product and have the following info: On hand = 650 Scheduled Receipts = 590 Back orders = 25 Should you place an order? (15%)

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

Effective small business management An Entrepreneurial Approach

Authors: Norman M. Scarborough

10th Edition

132157462, 978-0132157469

More Books

Students also viewed these General Management questions

Question

Describe the various approaches to negotiation.

Answered: 1 week ago