Question
What is the inventory level of Non-Cycle Stock (NCS)? What is the maximum inventory level? What is the average inventory? What is the length of
What is the inventory level of Non-Cycle Stock (NCS)?
What is the maximum inventory level?
What is the average inventory?
What is the length of a cycle (in days)?
What is the reorder point (in units)?
On what day will the first order be placed?
On what day will the first order be received?
What is the holding cost per unit?
What are the inventory turns?
What are the days of supply?
Data
Usage (or Sales) per day = 25 Units
Safety Stock = 50 Units
EOQ = 125 Units
Inventory in Transit = 25 Units
Obsolete Inventory = 25 Units
Leadtime = 3 Days
Costs
Purchase Price = $200 /Unit
Holding Costs:
Service (taxes/ins.) = 1% of Purchase Price
Storage = $7.50 /Unit
Risk (obsolescence) = 1% of Purchase Price
Capital or Opportunity = 20% of Purchase Price
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Supply Chain Management
Authors: Nada R. Sanders
2nd Edition
1119392195, 1119392322, 9781119392194, 9781119392323
