Defined as the lead-time demand for an item

Assignment Help Operation Management
Reference no: EM131369907

The reorder point is defined as the lead-time demand for an item. In cases of long lead times, the lead-time demand and thus the reorder poitn may exceed the economic order quantity Q*. In such cases, the inventory position will not equal the inventory on hand when an order is placed, and the reorder point may be expressed in terms of either the invenotry position or the inventory on hand. Consider the economics order quantity model with D = 4500, Co = 30, Ch = 2, and 250 working days per year. Identify the reorder point in terms of the inventory position (IP) and in terms of the inventory on hand (IOH) for a lead time of 5 days.

a IP = 367; IOH = 90

b IP = 90; IOH = 90

c IP = 367; IP = 277

d IP = 277; IP = 367

Reference no: EM131369907

Decisions about salary equity

What factors should be taken into account in decisions about salary equity? For example, should a teacher and a truck driver be paid the same, or should a computer programmer

Discuss this ethical-legal and regulatory conflict

Ethical, legal and regulatory conflicts occur when conflicting values are at odds. As you read them consider a nursing home that tries to keep resident safe (safety is a value

Compute the schedule variance and cost variance

In month 9 the following project information is available: actual cost is $2,000, earned value is $2,100, and planned cost is $2,400. Compute the Schedule Variance and Cost Va

What will be the economic order quantity

If Mercedes Benz realizes that its annual demand for 500SEL model is 50,000 and their cost of order preparations is $42,000.00 and the inventory carrying cost per car per ye

Reach optimum level of staff efficiency and guest service

Dawn Henlee, manager of the Hotel California, is considering how to restructure the front desk to reach an optimum level of staff efficiency and guest service. At present, the

What is the flow rate of the process

An automated car wash serves customers with the following serial process: pre-treat, wash, rinse, wax, hand dry. Each of these steps is performed by a dedicated machine except

Corporate-level strategy of diversification

When Wal-mart decided to incorporate grocery stores into some locations and created "super centers," was this business-level strategy of differentiation or corporate-level str

With sales revenue as the independent variable

Homestead Telephone was formed in the 1940s to bring telephone services to remote areas of the U.S. Midwest. The early equipment was quite primitive by today's standards. All

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd