Preparing an inventory management plan for fluorescent bulbs

Assignment Help Operation Management

Reference no: EM131028560

Phoenix Valley Lighting is preparing an inventory management plan for fluorescent bulbs. They have a forecasted demand of 9,232 bulbs per month with a MAD of 180 bulbs per month. The lead time to receive bulbs is 2 week(s) and they would like to have an 99% service level to avoid turning away customers. Their ordering cost is $583 and their holding cost is $3 per bulb (breakage)per year. When doing all calculations assume that there are 4 weeks in 1 month and there are no other contractual requirements on order quantities or frequencies. If following a fixed order quantity inventory management system, what should their reorder point be? (report your answer to two decimal places).

Reference no: EM131028560

Questions Cloud

What is the overhead cost and dollar value of the output : 6 workers produce 30,000 chocolate bars per week. 450 pounds materials are used, The hourly wage is $12, material cost is $6 per pound, and overhead is 1.5 times weekly labor cost. Selling price is $140 per unit. Assume 40-hour weeks. What is the ove..

What is the order processing time : At a factory that produces special widgets there are 43 arrivals per day. These are then split into 2 group sizes of 10. The groups then arrive to the first station where there are 4 machines. The time to set up is 3 minutes per group and the time to..

Furniture survivor tries to go global : Read the article "U.S. Furniture Survivor Tries to Go Global" and answer this question: “What are some of the means by which Ashley is able to keep costs low? How does Ashley maintain its competitiveness with Asian rivals? To what extent can Ashley a..

Approaches to staffing policy-ethnocentric and polycentric : Your text describes three approaches to staffing policy: ethnocentric, polycentric, and geocentric. When is each approach appropriate?

Preparing an inventory management plan for fluorescent bulbs : Phoenix Valley Lighting is preparing an inventory management plan for fluorescent bulbs. They have a forecasted demand of 9,232 bulbs per month with a MAD of 180 bulbs per month. If following a fixed order quantity inventory management system, what s..

Ethical and legal considerations in heath care : write a short evaluative summary of four ethical or legal issues related to health information technology (two examples include HIPAA and social networking). List the stakeholders, how each is affected, and what you recommend.

High complexity projects-integration of functional areas : Project management is a team approach for high complexity projects, integration of functional areas, rapid response to resolve problems or requirements, and provides maximum flexibility. Based on what you learned in this module, please debate the use..

Sum of annual ordering costs and inventory carrying costs : Your company manufactures bowling balls in Akron, Ohio. The primary raw material is polyurethane that you order from suppliers. The cost to place each order is $250. The price of the material is $4000 per ton delivered to your plant regardless of lot..

What is the civil rights act : What is the Civil Rights Act of 1964 and whom does it protect?What are the pros and cons of using honesty tests to screen job applicants? What is employment-at-will doctrine? How does it affect employees &Employers?

User Account

All Pages