Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The materials manager of an ambulatory surgery center is looking to determine the appropriate order quantity and reorder points for customized surgical kits. Ordering custom

The materials manager of an ambulatory surgery center is looking to determine the appropriate order quantity and reorder points for customized surgical kits. Ordering custom surgical kits costs $150 per order, and the annual holding cost is 10 percent of the product cost. Annual demand for surgical kits is 3,600 and the purchase price is $200. Lead time for delivery is two weeks and the standard deviation during lead time is 10.
Assuming that there are 365 days per year and the desired service level is 95%, what is the new reorder point incuding the safety stock? (Round your answer to 2 decimal places.)

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

Information Systems In Organizations People, Technology, And Processes

Authors: Patricia Wallace

1st Edition

0136115624, 9780136115625

More Books

Students also viewed these General Management questions