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The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time
The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was days, but now the vendor promises a reduction of percent in that time. Annual usage of soap is gallons. The car wash is open days a year. Assume that daily usage is normal, and that it has a standard deviation of gallons per day. The ordering cost is $ and annual carrying cost is $ a gallon. The revised price list cost per gallon is shown in the following table:
Order Size Unit Price
The store manager is considering to provide a service level of
How much is the Quantity from EOQ? Keep two decimal places
How much is the total annual inventory related costs holding ordering, and purchase costs if the car wash order the quantity from EOQ model?
How much is the total annual inventory related costs holding ordering, and purchase costs if the bakery orders just enough to get the soap at the price of $
How much is the total annual inventory related costs holding ordering, and purchase costs if the car wash orders just enough to get the soap at the price of $
What is the car wash's optimal order quantity, given this quantity discount information?
How often in days should the car wash order?
How long in days is the lead time?
What is the Z value for the desired service level?
How much safety stock is needed to provide the desired service level?
What is the ROP for the desired service level?
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