### What is reorder point if floyd assume a constant demand rate

Assignment Help Operation Management
##### Reference no: EM13918738

Floyd Distributors, Inc., provides a variety of auto parts to small local garages. Floyd purchases parts from manufacturers according to the EOQ model and then ships the parts from a regional warehouse direct to its customers. For a particular type of muffler, Floyd's EOQ analysis recommends orders with Q* = 25 to satisfy an annual demand of 200 muf- flers. Floyd's has 250 working days per year, and the lead time averages 15 days.

a. What is the reorder point if Floyd assumes a constant demand rate?

b. Suppose that an analysis of Floyd's muffler demand shows that the lead-time demand follows a normal probability distribution with µ = 12 and σ = 2.5. If Floyd's management can tolerate one stockout per year, what is the revised reorder point?

c. What is the safety stock for part (b)? If Ch = \$5/unit/year, what is the extra cost due to the uncertainty of demand?

### Previous Q& A

#### Review the predictor variables

Review the predictor variables and guess what their role in a credit decision might be. Are there any surprises in the data? Divide the data into training and validation partitions, and develop classification models using the following data mining t..

#### Book value

Iverycoast Inc. purchased a van on January 1, 2015, for \$800,000. Estimated life of the van was 5 years, and its estimated residual value was \$90,000. Iverycoast uses the straight-line method of depreciation. Calculate the book value of the van at th..

#### Discuss the effect that technology has had on the workplace

Can you provide an example of a technological innovation that brought with it a new safety or security risk. Discuss the effect that technology has had on the workplace. Did management foresee this risk?

#### What is floyds reorder point if the firm wants to restrict

What is Floyd's reorder point if the firm wants to restrict the probability of a stockout on any one cycle to at most 1%? What are the safety stock levels and the annual safety stock costs for the reorder points found in parts (a) and ..

#### What amount would barker report for land

Based on the preceding information, answer the following questions for Barker Company. All questions pertain to the 2013 financial statements.

#### Comprehensive earnings and retained earnings

TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS Earnings, Comprehensive Earnings and Retained Earnings

#### How does this information apply to 3m, an innovative company

Research standardization, flexibility and innovation in product/process design. How does this information apply to 3M, an innovative company with a variety of products? You will need to provide proof of 3M's innovation, flexibility, and/or standar..

#### Using motivation to improve performance

Motivation is a complex subject, but its understanding and application is central to the success of management and the organization. Imagine that the CEO of your organization (current or past) has tasked you with recommending actions to promote em..

#### Profits and losses equally

They agreed to admit Ramelow into the business for a one-third interest in the new partnership. He had to bring in a cash contribution of \$20,000 for the same. Assuming that Floyd and Merriam shared profits and losses equally before the admission of ..

#### What is the replenishment level if demand during the review

What is the replenishment level if demand during the review period plus lead-time period is normally distributed with a mean of 60 units and a standard deviation of 12 units?

### Similar Q& A

Determine two to four disadvantages of Buy American Act provides to small or large businesses that sell to the government. Speculate on why so many companies still sell to the government in spite of these disadvantages.

#### In common what are the qualitative pros and cons for

you were recently hired as the vp of logistics for the abc manufacturing company. this is a new position. during the

#### What changes in the organizing facet of p-o-l-c framework

What changes in the organizing facet of the P-O-L-C framework might you make at Toyota to prevent future mishaps like the massive recalls related to brake and accelerator failures

#### The environment and corporate social responsibility

Describe the relationship between packaging, the environment, corporate social responsibility, and logistics. you need to add the link or website of your source.

#### What three questions would you ask a prospective employer

What three questions would you ask a prospective employer before you would consider accepting a job offer? Further, if you did take the job,

#### Who is responsible for making sure the orientation

Who is responsible for making sure the orientation isn't boring? What do you believe is the most important thing to making this happen?

#### Explain the concept of the focused factory

Explain the concept of the focused factory. Why is this concept considered important in Operations Management?

#### When implementing new enterprise system

Beyond, or deeper than, what the text book provides, identify some specific challenges that organizations can face when implementing a new Enterprise System? In your discussion, include some real-world cases that support your specific points.

#### What organizational systems are impacted by the cycle

What organizational systems are impacted by the cycle of change? Explain. What systems are not as easily impacted by change? Why or why not?

#### Calculate a fixed quantity reorder point system

Demand for widgets is 52K widgets per year, ordering cost is 40 per order. Unit cost is 5, carrying charge 20% per year, Demand is 1000 per week, LT 2 weeks, Standard deviation of demand 200/week, Calculate a fixed quantity reorder point system with ..

#### Discuss the dimensions of authority possessed

Discuss the dimensions of authority possessed by attending physicians and surgeons.