Describe explicitly the optimal inventory system

Assignment Help Operation Management

Reference no: EM13101866

Demand for the DeskPro computer at BestBuy is 1,000 units per month. BestBuy incurs a fixed order placement, transportation, and receiving cost of $4,000 each time an order is placed. Each computer costs BestBuy $600 and the retailer has a holding cost of 10%. The delivery
lead-time is 6 days. (Assume 30 days in a month.)

a)Describe explicitly the optimal inventory system for DeskPro. (Draw the corresponding inventory-time diagram. Explain how the inventory system works, what is the optimal order amount, reorder point and the optimal cost of implementing this system.)

b)The store manager at BestBuy would like to have the optimal lot size to be 300. For this to happen, calculate how much the order cost per lot should be reduced.

Reference no: EM13101866

Questions Cloud

Application of poisson distribution : During the period of time phone-in reservations are being taken at a local university, calls come in at a rate of one every ten minutes.

Explain what is adidas'' corporate strategy : Explain what is Adidas' corporate strategy? Was there a communal strategic approach utilized in managing the company's line-up of sporting goods businesses prior to its 2005-2006 restructuring

What rules would you implement to try to limit : Will Kyle win his lawsuit alongside Authority-I for his injuries? 4: If you were Authority-I's CEO or head of HR what rules would you implement to try to limit your liability for people such as Cartman?

Probability of diameter : Sun Love grapefruit growers have determined that the diameters of their grapefruits are normally distributed with a mean of 4.5 inches and a standard deviation of 0.3 inches.

Describe explicitly the optimal inventory system : Demand for the DeskPro computer at BestBuy is 1,000 units per month. BestBuy incurs a fixed order placement, transportation, and receiving cost of $4,000 each time an order is placed.

P-value for a test of the schools claim : A medical school claims that more than 28% of its students plan to go into general practice. It is found that among a random smaple of 130 of the school's students, 32% of them plan to go into general practice. Find the P-value for a test of the s..

How do these websites assistance the company strengthen : How do these websites assistance the company strengthen its relationships with its stakeholders? List the website(s) that you previewed as well as give examples to support your answers

Explain how does the organization deal with risk : Explain how does the organization deal with risk? Explain how does it deal with uncertainty? Explain what is the market structure of the industry? Explain how does the market structure help to define potential strategic options?

Researcher analyzed the data using what t test : Scores ranged from 0 to 40 with higher scores reflecting greater computer anxiety. This variable was measured on the interval scale. The researcher analyzed the data using what t test?

User Account

All Pages