Most appropriate reorder point and safety stock

Assignment Help Business Management
Reference no: EM131283371

1. The demand for a particular part called SKU 005 is 2,400 units a year. The cost of one SKU 005 is $98.00. It costs $38.00 to place an order of SKU 005, and the holding cost per unit per year is 25% of unit cost.

a. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005?

b. What is the economic order quantity for SKU 005?

c. The vendor who sells SKU 005 has just offered a 3% discount for orders of 600 or more. Now how many should be ordered?

2. A carpet cleaning firm uses an average of 48 gallons of cleaning fluid a day. Usage tends to be normally distributed with a standard deviation of 7 gallons during lead time. Lead time is 3 days, and the desired service level is 96 percent. What is the most appropriate reorder point and safety stock level for this carpet cleaning firm?

Reference no: EM131283371

Questions Cloud

Strong brand can provide for a company : Taking into consideration any brand describe the important benefits that a strong brand can provide for a company.
Most common prizm segments to obtain a segment description : Discuss the extent to which you believe these are accurate descriptions of the main segments of people who reside in your zip code.
Show that efficient recruiting is np-complete : The question is: For a givennumber k
Compute the p-value and interpret its meaning : Using a .01 level of significance, do the sample results support the conclusion that the mean annual consumption of Coca-Cola beverage products is higher in Atlanta? Compute the p-value and interpret its meaning. Explain your conclusions.
Most appropriate reorder point and safety stock : A carpet cleaning firm uses an average of 48 gallons of cleaning fluid a day. Usage tends to be normally distributed with a standard deviation of 7 gallons during lead time. Lead time is 3 days, and the desired service level is 96 percent. What is..
Running short of the item on the day of the sale : A department store will place a sale item in a special display for a one-day sale. Previous experience suggests that 32 percent of all customers who pass such a special display will purchase the item. how many units of the sale item should the store ..
Expectations for gendered nonverbal communication : What are the impacts of violating traditional expectations for gendered nonverbal communication?
Verbal and nonverbal communication examples : What is gendered communication and what are gendered verbal and nonverbal communication examples? And what are traditional expectations of nonverbal communication? How can men and women violate these expectations?
How can firms use customer demographics : How can firms use customer demographics like income, market size, education, and ethnicity to market to their customers better?

Reviews

Write a Review

Business Management Questions & Answers

  Explain human resources manager at your company

Describe that you are taking an Employment Law class. Ask him/her how he/she would method an order to downsize the company. What procedures would they follow? How would they select which employees were expendable? Are they covered under the WARN A..

  Making decisions about acquiring software arent an easy

making decisions about acquiring software arent an easy business and who are the stakeholders who would be involved in

  Focusing on the material related to team building

Focusing on the material related to team building, compare and contrast this MGMT591 session with a team that you are familiar with. In what aspects does the class resemble a team? Are there parallels between the stages of team development and the pr..

  The quantitative analysis approach

Discuss  the quantitative analysis approach

  Workers and employers in the united states

What are some other technology privacy laws that apply to workers and employers in the United States? How do they protect employees from privacy invasion and how to they actually allow employers to invade the privacy of their employees? Is your pe..

  How the concepts in adams equity theory can be incorporated

Explain how the concepts in Adams' equity theory can be incorporated into expectancy theory. Respond substantively to two other learners.

  Explain the concept of problem solving

Explain the concept of problem solving. Why is it important to gather critical information prior to defining a problem statement? This answer must be in your own words

  Explain retail institutions

Explain Retail Institutions Please respond to the subsequent-Choose two kinds of retail ownerships and compare as well as contrast them. Rate the importance of each kind of retail ownership in your life.

  Acceptable under the sherman act

Due to the limited amount of work available for Actors and Models in their city, the three talent agents have gotten together and agreed to never charge a commission below 15%. Discuss in length if this is acceptable under the Sherman Act?

  Discuss in scholarly detail describe the newest trends

Discuss in scholarly detail describe the newest trends in mission components and also differentiate between company philosophy

  The influence of leadership style on ethical decision making

In a three- to five- page paper, excluding title page and references page, analyze the influence of leadership style on ethical decision making, including specific examples drawn from research on today's business leaders.

  Developed a revolutionary new personal computer

Question about the international manager of a U.S. business that has just developed a revolutionary new personal computer that can perform the same functions as existing PCs but costs only half as much to manufacture.

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