Contractual requirements on order quantities or frequencies

Assignment Help Operation Management

Reference no: EM132198510

Phoenix Valley Lighting is preparing an inventory management plan for fluorescent bulbs. They have a forecasted demand of 11,465 bulbs per month with a MAD of 208 bulbs per month. The lead time to receive bulbs is 1 week and they would like to have a 93% service level to avoid turning away customers. Their ordering cost is $492 and their holding cost is $1 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 order quantity be? Report your answer to two decimal places.

Reference no: EM132198510

Questions Cloud

What different types of team structures have you been : What type of change strategy would you incorporate for an organization that uses work groups?

The business of making consumer loans : Republic Finance Co. is in the business of making consumer loans.

How much office supplies expense should bfi recognize : BFI has $750 of office supplies on the shelf at December 31, 2016. How much office supplies expense should BFI recognize

What are some strengths and weaknesses of the proposal : Select a topic for your Topic 3 Executive Summary assignment. Post your idea and basic thoughts about the topic using the Topic 3 Executive Summary assignment.

Contractual requirements on order quantities or frequencies : 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.

What are potential ethical issues related to transferring : You have traditionally purchased large rolls of rubber (about 40 inches wide) and slit them into 2" strips for use in your die cutting process.

Project authorization or project initiation document : Projects documents are organized and archived. Project charters are sometimes called a project authorization or project initiation document.

What is the nature of the world around us : Write an 800-1,000-word essay on your personal worldview. Briefly discuss the various possible meanings of the term "spirituality," and your understanding.

What is their expected combined salary in their last year : They are both 30 years old. What is their expected combined salary in their last year of work if inflation averages 2.5% each year

User Account

All Pages