Inventory system to control reordering items for stock

Assignment Help Other Subject
Reference no: EM13159685

You manage inventory for your company and use a continuous review inventory system to control reordering items for stock. Your company is open for business 300 days per year. One of your most important items experiences demand of 20 units per day, normally distributed with a standard deviation of 3 units per day. You experience a lead time on orders from your supplier of 6 days with a standard deviation of 2 days. If you order less than 1,000 units, you pay the supplier $5.00 per unit. Orders of 1,000 or more can be bought at a unit price of $4.75. Your ordering cost is $50. Your inventory carrying cost is 20%. You have established a service level policy of 97.5% on this item.

a. What is your optimal order quantity?

b. What is your reorder point?

c. How much safety stock do you carry?

d. What is your average inventory?

e. Suppose you reduced your ordering cost from $50 to $10, what is the impact on all other variables? (increase or decrease, change to how much?)

Reference no: EM13159685

Cause problems in a new habitat

Discuss the dangers posed to existing community members when new species are introduced into ecosystems. What type of organism would be most likely to survive and cause prob

Awareness of oppression-arousing sympathy of supporters

By creating awareness of oppression and arousing sympathy of supporters, the arts can be a form of protest. Identify and describe an example of how either black slaves or wh

Representations of slavery in the visual arts

Explain whether you think the representations of slavery in the visual arts (such as William Blake's illustrations, William Hackwood's cameo, or John Singleton Copley's pain

Autobiographical or fictional account by a slave

Explain whether you think an autobiographical or fictional account by a slave (such as Phillis Wheatley and Olaudah Equiano) is more persuasive than a biographical or fictio

Recursive function in scheme

Write a recursive function in Scheme, called "get-element" which takes two parameters, an index and a list. The function returns the element at the given index position in t

Hypothesis about the phenomena

What phenomenon in space would you explore further? Give us a description of the phenomena, formulate a hypothesis about the phenomena and how you would go about studying it

Major influencers upon israel in ancient near east

What were the major influencers upon Israel in the Ancient Near East (cultures) and how did they impact the Hebrew people/writings of the Hebrew Bible?

Advantages and disadvantages of public access

Discuss the advantages and disadvantages of public access to this information, both for the researchers and those who are being "investigated".

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