Catfish bait manufacturer uses secret blend of ingredients

Assignment Help Operation Management

Reference no: EM131181445

A catfish bait manufacturer uses a secret blend of ingredients to make their infamous bait. One of these ingredients, we'll call it X for proprietary reasons, is the major component in the mixture. X is ordered in 55 gallon barrels from out of state and is used at the rate of 800 barrels per year. Each order that is placed with the supplier costs $45 to process. Storage space is at a premium on the manufacturing floor and out in the yard, so their annual cost to hold inventory is $80 per barrel. The owner's brother-in-law provides transportation services and his record has been less than stellar, so lead time has averaged 6 days with a standard deviation of 3. Stopping the process would be disastrous, so the plant manager has set a 99% service level on the reorder point.

What is the best order quantity?

What is the total cost at this reorder point?

What is the reorder point?

What is the cost of holding this safety stock?

Reference no: EM131181445

Questions Cloud

Activity cost pools and cost drivers : Another alternative to traditional costing and ABC is time-driven activity-based costing (TDABC). You will need to determine which of these three methods would be the best approach for the Hampshire Company. The following article may assist you in..

The statistical abstract of the united states : Then determine whether the percentage of U.S. GDP attributed to the primary, secondary, tertiary, and government sectors has increased or decreased compared to the data presented in this chapter.

What is the annual var for this portfolio : If the annual return of the portfolio follows a t-distribution with five degree of freedom (d.f. = 5), and with the same mean and standard deviation as above, then what is the annual VaR for this portfolio

Write a paper on given topic : Write a paper on given topic. - The given topic is: "Total eclipse by Ann Dillard 15PGS".

Catfish bait manufacturer uses secret blend of ingredients : A catfish bait manufacturer uses a secret blend of ingredients to make their infamous bait. One of these ingredients, we'll call it X for proprietary reasons, is the major component in the mixture. X is ordered in 55 gallon barrels from out of state ..

Bargaining with coalition bargaining representing employees : GMFC is a charter member of the Material Handling Equipment Association (MHEA). The organization was started in the late 1940s and now includes 30 members producing over 95 percent of all domestic material handling equipment. Taking a (NONunion) mana..

What was the labor force experience of your grandparents : Do the patterns in your family reflect the national pattern of changes discussed in the text?

Describe the threat assessment process of an arena : Describe the threat assessment process of an industry/arena of your choice (municipal government, law enforcement, health care, international travel, etc.).

What areas are considered as critical infrastructure : Discuss what areas are classified or considered as critical infrastructure based on the above resources. Identify three areas you feel are critical but are not identified by government agencies.

User Account

All Pages