What is the cycle stock of cleaning vinegar

Assignment Help Supply Chain Management

Reference no: EM133353487

Case Study: Howard Clark is the inventory manager for CrystalClear, an online retailer based in Texas that only sells eco-friendly cleaning products. Cleaning vinegar is one of their most demanded products. Annual demand for cleaning vinegar is normally distributed with a mean of 672 liters and standard deviation of 163 liters. Howard's current inventory policy is ordering 168 liters every 3 months from their main supplier. The lead time between placing and receiving the order is 1 month, and CrystalClear takes ownership of the product as soon as it leaves the supplier's facility. Considering that the cycle service level target is 90%:

Q1: What is the cycle stock (in liters) of cleaning vinegar under this policy? What is the pipeline inventory (in liters) of cleaning vinegar under this policy?

Q2:What is the safety stock (in liters) of cleaning vinegar under this policy?

Q3:Howard knows that inventory performance metrics are closely interrelated, and that once you set up one of them you can imply the value of the other. Considering that the annual holding cost per liter of vinegar is 26 $/liter-year, he wonders what would be the cost per item short (CIS) with his current policy. Could you help him figure it out?

Cost per item short (CIS):

Q4: Finally, Howard would like to explore other inventory management policies. He decides to start by transforming his current policy for cleaning vinegar into a continuous review policy (s,Q). Given that the estimated cost of placing an order is $110:

What should be the new order quantity (EOQ)? What should be the reorder point (s)?

Reference no: EM133353487

Questions Cloud

Briefly summarize the articles main findings : briefly summarize the articles main findings or results. As well as briefly summarizing the article's contribution to understanding of journalism and/or media

Create two flow charts or other comparable visual stimuli : Create two flow charts or other comparable visual stimuli of your choosing along with one slide presentation comparing the two contrasting charts.

What does it mean to be an american today : What does it mean to be an American today? That question is at the heart of America's ongoing struggle to modernize its immigration laws.

Does betsy need to change her leadership style to improve : Does Betsy need to change her leadership style to improve the situation with Bridget and Suzanne? Does Marianne need to change her style of leadership

What is the cycle stock of cleaning vinegar : What is the cycle stock (in liters) of cleaning vinegar under this policy? What is the pipeline inventory (in liters) of cleaning vinegar under this policy?

Strategic planning is important element of management : Strategic planning is an important element of the management process and requires setting goals and deciding how to achieve them.

Compare and contrast the various ways that oil has shaped : Compare and contrast the various ways that oil has shaped 1) international, 2) intra-regional, and 3) domestic politics in/of the Middle East?

Describe a government response to recent california floods : Critique a government response to the recent California floods and provide an outline of recommended improvements to an emergency operations plan.

Need to do china taiwan conflict complex analysis : Need to do China Taiwan conflict complex analysis (for international relations) contains: introduction

User Account

All Pages