Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm uses a fixed time period model to manage a type of bolts they keep in inventory. The average daily demand for the bolts

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
A firm uses a fixed time period model to manage a type of bolts they keep in inventory. The average daily demand for the bolts is 56 with a standard deviation of 3. An order is placed every 35 days and is received 9 days later. They use a 99 percent service level and currently have 86 on hand. How many should they order? Do not round intermediate calculations. Round your answer to a whole number. Uncle Chuck's Chicken Sandwich operates 360 days per year and uses a periodic system to make inventory decisions for fries. Daily demand has been forecast to be 500 units and the standard deviation of daily demand is 150 units. The order interval is 8 days and the order lead time is 6 days. Uncle Chuck's Chicken Sandwich desires to maintain a service level of 98% for this item. How much safety stock Uncle Chuck needs to carry? Do not round intermediate calculations. Round your answer to a whole number. Uncle Chuck's Chicken Sandwich operates 360 days per year and uses a periodic system to make inventory decisions for fries. Daily demand has been forecast to be 600 units and the standard deviation of daily demand is 300 units. The order interval is 9 days and the order lead time is 9 days. Uncle Chuck's Chicken Sandwich desires to maintain a service level of 98% for this item. If the on-hand inventory is 2,900, what is the order quantity? Round your answer to a whole number. Tesla uses a perpetual inventory system to make inventory decisions about a replacement part for a Model X. Annual demand has been forecast to be 2,900 units and the business operates 300 days per year. The standard deviation of daily demand has been forecast to be 15 units. The order lead time is 8 days. Tesla pays $8 to hold a unit for a year and $300 to place an order. Tesla's target service level is 98%. What is Tesla's total annual inventory cost? (Hint: include the carrying costs for safety stock; provide your answer in two decimal points.) Annual demand is 2,435 , the price of one unit is $2.20, the order quantity is 75 , the holding cost per unit per year is $0.26, and the order cost is $55. What is the total annual cost? Do not round intermediate calculations. Provide your answer with two decimal points

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

13th Edition

978-0470423684

Students also viewed these General Management questions