Reference no: EM133455426
Question
1. The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at five days. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demand is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place an order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.
Find the economic order quantity (EOQ).
a. 346
b. 1788
c. 632
d. 36
2. The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at five days. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demand is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place an order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.
What are the expected value and standard deviation of demand during lead time?
a. 40, 7.6
b. 40 , 16.99
c. 200 , 16.99
d. 200, 7.6
3. The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at five days. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demand is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place an order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.
Assume that the retailer wants to set the cycle service level at 85%. what is the required safety stock level?
a. 16.99
b. 17.67
c. 40
d. 200
4. The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at five days. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demand is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place an order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.
Assume that the retailer wants to set the cycle service level at 85%. Find the reorder point for a continuous review system.
a. 18
b. 240
c. 200
d. 218
5. The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at five days. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demand is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place an order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.
Assume that the order quantity is 700 per order. what is the ordering cost?
a. 740
b. 685
c. 215
d. 28000
6. The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at five days. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demand is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place an order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.
Assume that the order quantity is 700 per order. what is the annual holding cost?
a. 840
b. 1680
c. 2800
d. 28800
7. The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at five days. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demand is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place an order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.
Find the annual cost of this system, identifying and including all relevant components as well as the cost of goods.
a. 96,802 $
b. 97,517 $
c. 96,000 $
d. 97,561 $
8. The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at five days. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demand is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place an order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.
Recently the lead times exhibited some variation, which requires a rethinking of the ordering policy. Assume that the current lead times can be approximated by a normal distribution with a mean of six days and a standard deviation of 1.2 days. Find the amount of safety stock under these changed circumstances (cycle service level 85%).
a. 51.48
b. 294
c. 240
d. 53.54
9. The manager of a local retail store is ordering a specialty item from a supplier in Toronto. The lead time is constant at five days. The store is open 300 days a year (50 weeks Monday-Saturday, with a two-week vacation). The average daily demand is 40 units, with a standard deviation of 7.6. (Assume that the distribution is approximately normal.) It costs $40 to place an order, and the annual holding cost is 30% of the inventory value. The supplier charges $8.00 per unit.
Recently the lead times exhibited some variation, which requires a rethinking of the ordering policy. Assume that the current lead times can be approximated by a normal distribution with a mean of six days and a standard deviation of 1.2 days. Find the amount of reorder point under these changed circumstances.
a. 51.48
b. 240
c. 294
d. 53.54