Use the order-up-to model to control inventory

Assignment Help Operation Management
Reference no: EM131428666

You are the store manager at a large furniture store. One of your products is a study desk. Weekly demand for the desk is normally distributed with mean 40 and standard deviation 20. The lead time from the assembly plant to your store is two weeks and you order inventory replenishments weekly. You use the order-up-to model to control inventory.

a. Suppose your order -up-to level S-220. You are about to place an order and note that your inventory levelis 100 and you have 85 desks on order. How many desk will you order?

b. Suppose your order-up-to level is S=220. You are about to place an order and note that your inventory level is 160 and you have 65 desks to order. How many desk will you order?

c. What is the optimal order-up-to level if yo uwant to target a 98 percent in stock probability?

d. Suppose your order-up-to level is S=120. What is your expected on-hand inventory?

e. Suppose your order-up-to level is S=120. Yout internal cost of capital is 15 percent and each desk costs $200. What is your total coat of capital for the year for inventory in the store?

Reference no: EM131428666

Elements of its observable culture as defined by senge

Using an organization with which you are familiar, identify its core culture and the elements of its observable culture as defined by Senge. What do you think would need to be

What is the expected profit you expect to generate

1. How many units should you produce of this game knowing that the units produced need to last for the next 5 months with no possibility of replenishment during this period? 2

A bilateral contract is a promise for a promise

A bilateral contract is a promise for a promise. Under the UCC Rule 2-207 for the sale of goods when a contract is made by the exchange of forms, when the acceptance form has

Develop the overall project management plan

You are the project manager for your organization, and you have been asked to develop the overall Project Management Plan that will be used to implement a change to current

About the environment and economy-minded person

Assume you plan a demonstration to prove some of the claims you have made for a new riding lawnmower. How would the demonstration differ for each of these three individuals: a

Cash flow by drastically cutting their costs

Macy's was able to increase their cash flow by drastically cutting their costs. With an increased cash flow they were then able to meet their financial obligations and generat

Financial options and weighted average cost of capital

Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio. Support your answer with examples of these methods being used to create

Discounted cash flow calculation-what is net present value

A 3 year financial project is forecast to have net cash inflows of $20,000, $25,000, and $30,000 in the next three years. It will cost $50,000 to implement the project payable

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