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Two managers work at Wagu, a company that supplies household items to department stores. Wagu executives will like to make changes to their inventory system
Two managers work at Wagu, a company that supplies household items to department stores. Wagu executives will like to make changes to their inventory system specifically for dinnerware set. Manager A proposes using a model that is time-triggered to manage inventory while Manager B proposes using a model that is event-triggered to manage inventory. Using the information below, calculate the order quantity both managers will obtain. For the event-triggered model, determine the reorder point accounting for safety stock. Annual Demand 2,400 units Standard Deviation of demand 4 units per day Working days 365 days Service level 98.214% Order cost per year $5 Holding cost per unit per year $4 Lead time 1 week (7 days) Review period 15 days Inventory on hand 50 units Manager A: Manager B:
Two managers work at Wagu, a company that supplies household items to department stores. Wagu executives will like to make changes to their inventory system specifically for dinnerware set. Manager A proposes using a model that is time-triggered to manage inventory while Manager B proposes using a model that is event-triggered to manage inventory. Using the information below, calculate the order quantity both managers will obtain. For the event-triggered model, determine the reorder point accounting for safety stock. Annual Demand 2,400 units Standard Deviation of demand 4 units per day Working days 365 days Service level 98.214% Order cost per year $5 Holding cost per unit per year $4 Lead time 1 week (7 days) Review period 15 days Inventory on hand 50 units Manager A: Manager B:
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-1111879044
