Review system for managing inventory

Assignment Help Operation Management
Reference no: EM132708756

Popular bookstore at SIM uses a continuous review system for managing its inventory. As the new store manager, your responsibility is to ensure that the order quantities for the stationary items are correctly established. The characteristics of one of the stationary items are as follows: Demand = 45 units/day (Assume 365 days per year, and 7 days per week) Lead time (L) = 4 weeks Standard deviation of weekly demand = 110 units Unit cost (C) = $42 Holding cost (H) = 20 percent of the item unit cost per year Ordering cost (S) = $23/order Desired service level = 95% (z = 1.64) Examine the inventory situation at Popular for the above item by calculating the following: ? Economic order quantity ? Total annual cost Reorder point including the safety stock

Reference no: EM132708756

Questions Cloud

What was ending balance of allowance for doubtful accounts : The allowance for doubtful accounts reflects Microsofts, What was the ending balance of allowance for doubtful accounts in 2014 (in millions)?
What would be its approximate value after the split : If Kinmi's stock price had been $49 at the time of the split, what would be its approximate value after the split (other things equal)
What was the total purchase price of acquiring substantially : What was the total purchase price of acquiring substantially all of Nokia's Devices and Services Business on April 25, 2014 (in millions)?
Discuss how the practice of strategy categorises : Discuss how the practice of strategy categorises these factors and identify the strategic implications for the organisation in question.
Review system for managing inventory : Popular bookstore at SIM uses a continuous review system for managing its inventory. As the new store manager, your responsibility is to ensure
Which section of the cash flow statement starts : Which section of the Cash Flow Statement starts with the net income in determining the net change in cash and cash equivalents in that section?
What is the probability that demand : What is the probability that demand for this book will be within the 20 percent of the mean forecast?
Find how many units of product a produced during month : On November 1, Barnes Corporation has 8,000 units of Product A on hand. How many units of Product A must be produced during the month?
What is the probability : What is the probability that this project will not be completed within 205 days?

Reviews

Write a Review

Operation Management Questions & Answers

  Define ethical relativism and moral universalism

Identify the one non-ethical issue in the case scenario. Define ethical relativism and moral universalism.

  Find annual report of an internet-based firm

Find an annual report of an internet-based firm and undertake a financial analysis of the firm using financial ratios.

  Calculate this year productivity

Your company's productivity last year was 41.8. If you are forecasting a growth rate of 1.7% to be maintained, calculate this year's productivity.

  Explain the departmental responsibilities

Describe the campaign and explain procedures for conducting the campaign. Explain the departmental responsibilities.

  How an organization use different component of marketing mix

Select an organization with which you are familiar. How does your selected organization use the different components of the marketing mix?

  Explain the four basic ways of market segmentation

What is the goal of market positioning and explain the four basic ways of market segmentation?

  An effective way of demonstrating professionalism

An effective way of demonstrating professionalism from the very beginning is to ________.

  Company only offers medical benefits to individual employee

Your company only offers medical benefits to the individual employee. There are no vision or dental benefits.

  List three to five examples of assertiveness techniques

List three to five examples of assertiveness techniques that you believe might be useful to a supervisor. The three- to five-techniques you believe to be effective. Why you chose those techniques and how you might use them on the job as a supervisor.

  Requirements of the ontario human rights code

What should you do to meet the requirements of the Ontario Human Rights Code?

  Describe five alternative system building approaches

Describe five alternative system building approaches that JetBlue could apply to implement a transaction processing system for baggage. Identify which one of the five alternative system building approaches you believe JetBlue, would apply, and explai..

  What are the key elements of effective corporate governance

What are the Key Elements of effective corporate governance? Does your company have these elements in place?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd