The supplier is reliable and maintains a constant lead time of 5 days. The cost of placing an order is $10 and the cost of holding inventory is $0.50 per unit per year. There are no stock-out costs, and unfilled orders are filled as the order arrives. Assume sales occur over 360 days of the year.

Your goal here is to find the order quantity and reorder point to satisfy a 90 percent probability of not stocking out during the lead time.

a. to manage inventory, the company is using (select one)

b. Find the order quantity

c. find the reorder point

Posted Date: 2/17/2014 2:21:58 AM | Location : United States

Ask an Expert

Related Discussions:- How to find the order quantity, Assignment Help, Ask Question on How to find the order quantity, Get Answer, Expert's Help, How to find the order quantity Discussions

Write discussion on How to find the order quantity
Your posts are moderated

Write your message here..

Related Questions

Treats older workers differently than the younger workers, Carlos, age 24, ... Carlos, age 24, and Samuel, age 47, are employed as security officers for Jackson Security Co. In an effort to retain qualified officers and to be more competitive with the salarie

Explain the organizational structure that results, Describe the organizatio... Describe the organizational structure that results from each of the different bases of departmentalization?

Machine load chart, Machine Load Chart In machine load chart time is m... Machine Load Chart In machine load chart time is marked along horizontal axis and various machines are marked along the vertical axis. The orders by their number Have been mar

Explain what is the productivity measure, A hamburger factory produces 40,0... A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 and will remain productive for 4 years. The labor cost per year is $9,500. a. What is t

Explain what are the cost associated with customer loss, What are the cost ... What are the cost associated with customer loss?

Which factors influence the choice of evaluation design, What factors influ... What factors influence the choice of evaluation design? Which of these factors would have the greatest influence on your choice of an evaluation design? Which would have the smalle

Explain what problems does diversity present, Individual diversity is an im... Individual diversity is an important concept in organizational behaviour. People can be described by a number of categories that are both inherent (e.g., age, race, gender, ethnici

Turnaround at the preston plant, what are the most significant events in th... what are the most significant events in the story of how the plant survived because of the adoption of quality-based principles?

Explain accounting for health care organizations, What are some ways in whi... What are some ways in which accounting for health care organizations (HCOs), especially not-for-profit (NFP) ones, tends to differ from accounting in other industries?

Describe difference between significance and meaningfulness, What is the di... What is the difference between significance and meaningfulness? Which one is more important to experimental results and why do you think so?