Desired during the reorder interval-what is reorder point

Assignment Help Operation Management

Reference no: EM13904380

Annual demand for an item is 11,000 units with the cost per unit at $250. The holding rate is 10% and the order cost is $14.00 per order. The standard deviation of daily demand is 3 units. Assume 260 days in the year and a lead-time of 2 days. If a service level of 97% is desired during the reorder interval, what is the reorder point?

Reference no: EM13904380

Questions Cloud

Consider the social factors that influence consumer decision : Consider the social factors that influence consumer decisions. Select two demographic or psychographic factors that would be most important to these product-marketing situations:

Interval approach to managing his inventory of corn chip bag : John uses a fixed order interval approach to managing his inventory of corn chip bags (i.e., John orders more bags on the 1st of each month). John doesn't know demand with certainty, but he usually ranges from 2000 to 4000 bags, so he keeps 4500 bags..

What will be the average inventory of fuel : Steve owns a local trucking company. With fuel costs being expensive, Steve wants to evaluate how much fuel, on average, he should store in his 8,000 gallon fuel tank. Each year Steve uses 80,000 gallons of diesel (usage is spread evenly throughout t..

Quantity discounts are available according to the schedule : Annual demand for an item is 35,000 units. The holding cost rate is 15% of the item cost. Ordering costs are $25 per order. Assume 52 5-day weeks per year. If the lead-time is 1 week, what should the reorder point be?

Desired during the reorder interval-what is reorder point : Annual demand for an item is 11,000 units with the cost per unit at $250. The holding rate is 10% and the order cost is $14.00 per order. The standard deviation of daily demand is 3 units. Assume 260 days in the year and a lead-time of 2 days. If a s..

Example of an experiential training method : Which of the following is an example of an experiential training method?

Initiated system where high-potential employees : A pharmaceutical company, TechnoGene, has initiated a system where high-potential employees are identified and trained for senior positions in the company. Which of the following processes is exemplified in this scenario?

Discuss this case from irwin industries perspective : Lynn Hines is employed by Irwin Industries. She recently became a Seven Day Adventist and has informed her employer that she can no longer work on Saturday. Irwin Industries makes seat customs for air planes and is a relatively small operation. She ..

Procurement decisions in absence of purchasing manager : Peter, a logistics manager, is trained to handle inventories and make procurement decisions in the absence of the purchasing manager. Which of the following training methods was received by Peter?

User Account

All Pages