Continuous review inventory system

Reference no: EM131027894

Osprey Sports stocks everything that a musky fisherman could want in the Great North Woods. A particular musky lure has been very popular with local fishermen as well as those who buy lures on the Internet from Osprey Sports. The cost to place orders with the supplier is 530/order; the demand averages 4 lures per day. with a standard deviation of I lure; and the inventory holding cost is $1.00/lure/year. The lead time form the supplier is 10 days, with a standard deviation of 3 days. It is important to maintain a 97 percent cycle-service level to properly balance service with inventory holding costs. Osprey Sports is open 350 days a year to allow the owners the opportunity to fish for muskies during the prime season. The owners want to use a continuous review inventory system for this item.

a. What order quantity should be used?

b. What reorder point should be used?

c. What is the total annual cost for this inventory system?

Reference no: EM131027894

Questions Cloud

Represent the ideal structure : For this assignment, you should create an organizational chart to represent the ideal structure for your current organization (or one with which you are familiar). You should include:

Thousands of stockholders lost millions of dollars : After the scandal was uncovered, thousands of stockholders lost millions of dollars as Enron share values plummeted." Discus what you perceive from this scenario also explain the pros and corns of it in detail.

Thousands of stockholders lost millions : After the scandal was uncovered, thousands of stockholders lost millions of dollars as Enron share values plummeted." Discus what you perceive from this scenario also explain the pros and corns of it in detail.

Find the probability that exactly two of the four components : The subsystem will operate if any two of the four components are operating. Assume that the components operate independently. Find the probability that exactly two of the four components last longer than 1000 hours.

Continuous review inventory system : Osprey Sports is open 350 days a year to allow the owners the opportunity to fish for muskies during the prime season. The owners want to use a continuous review inventory system for this item.

What is the most important aspect of dairy production : In your opinion, what is the most important aspect of dairy production (example: nutrition, reproduction, labor, health of dairy herd, milk quality/safety, etc.)? Make an argument as to why you believe this. Name two things your learned or found i..

Stockholders lost millions of dollars : After the scandal was uncovered, thousands of stockholders lost millions of dollars as Enron share values plummeted."

Does y have a binomial distribution : A market research firm has hired operators who conduct telephone surveys. A computer is used to randomly dial a telephone number, and the operator asks the answering person whether she has time to answer some questions. Let Y = the number of calls..

Find the probability function for y : Each judge is asked to state which glass he or she most enjoyed. Suppose that the two formulas are equally attractive. Let Y be the number of judges stating a preference for the new formula. Find the probability function for Y .

User Account

All Pages