Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use for the following 8 questions: Perfect Perambulators makes upscale baby strollers 3 0 0 days per year. They have a subcontractor supply axles for

Use for the following 8 questions: Perfect Perambulators makes upscale baby strollers 300 days per year. They have a subcontractor supply axles for the strollers with a lead time of 5 days. The annual demand for axles will be 39,000. The cost of processing an order is $560 per order . The unit cost of the axle is $38.80, and the cost of holding these axles is 12.5% of purchase cost .1-What would be the economic order quantity (round to nearest whole unit )?2-What is the reorder point ?3-How many times per year would Perfect Perambulators have a setup? (nearest whole number)4-What would be the total annual inventory cost for this part? (nearest dollar)5-If Perfect Perambulators orders a single full pallet of 2500 axles at a time for convenience instead of the EOQ, how much is the company overpaying in total inventory cost? ( nearest dollar )6-If average demand during lead time is normally distributed with a standard deviation of 25 axles, what is the safety stock quantity if the company wants to maintain a 97% service level ?(nearest whole unit )7-If average lead time is normally distributed with a standard deviation of 0.5 days, what is the safety stock quantity if the company wants to maintain a 97% service level? (round to nearest whole )8-What would be the total annual inventory cost for this part using EOQ and including the safety stock determined in the previous problem (problem with standard deviation of 0.5 day)?(round to nearest dollar)9-A copy center uses 50 reams of paper per day. Average demand during a 5 day lead time is normally distributed with a standard deviation of 7 reams. What reorder point provides a service level of 90%?(round to nearest whole number)

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

Successful Project Management

Authors: Jack Gido, Jim Clements

4th Edition

9780324656152, 324656130, 978-0324656138

More Books

Students also viewed these General Management questions