What is the inventory position immediately

Assignment Help Operation Management

Reference no: EM13248381

Office Supreme, Inc., a local retailer of office supplies, faces demand for one of its inventoried items at a constant rate of 30,000 units per year. It costs Office Supreme $20 to process an order to replenish stock and $2 to carry the item in stock. The unit cost is $5.00. Stock is received 4 working days after an order is placed. Currently the store does no backordering. Assume 300 working days per year.

a. What is Office Supreme's optimal ordering quantity and optimal associated cost?

b. What is the optimal interval (in working days) between orders?

c. What is the demand during lead-time?

d. What is the inventory position immediately after an order has been placed?

e. Suppose that the store can obtain the units for only $4.00 per unit if they order in lots of at least 1000 units at a time. Should the company take advantage of this discount or not? Show all work.

f. Suppose that the store wants to consider a stockout strategy. They estimate the cost of back ordering to be $3 per unit per year. What is the optimal policy and cost of such a strategy? Show all work and draw a diagram of this policy.

Reference no: EM13248381

Questions Cloud

Depict the structure of the product formed : N-Methyl-2-pyrrolidone is an aprotic solvent used in many industrial processes. Draw the structure of the product formed when it is heated with strong aqueous acid 6MHCI, H20 and heat.

What will the cound be after seven clock pulses : 1. A MOD 8 down-counter is holding the count 101 (base-2). What will the cound be after seven clock pulses 2. A MOD 5 and a MOD 20 counter are cascaded. What is the output frequency if the input frequency is 60MHz

Explain and identify the stronger acid in each of the pairs : identify the stronger acid in each of the following pairs a)NH4^+ or H3O^+ b)H2SO4 or HCN c)H2O or H2CO3

Find an example from the media : Regulations are made to be broken, right? Can you find an example from the media where an MCO did not follow a regulation and found itself in trouble?

What is the inventory position immediately : Suppose that the store wants to consider a stockout strategy. They estimate the cost of back ordering to be $3 per unit per year. What is the optimal policy and cost of such a strategy? Show all work and draw a diagram of this policy.

The pairs of atoms would be pure covalent and polar covalent : Determine whether a bond between each of the following pairs of atoms would be pure covalent, polar covalent, or ironic.

Determine the degree of magnetic saturation in this salt : Gadolinium sulphate obeys Langevin's theory of paramagnetism down to a few degrees Kelvin, Determine the degree of magnetic saturation in this salt at a temperature of 2K in a field of flux density 2 weber/m^2

Determine minimum value of the dc open-loop gain required : An op-amp is to be selected for an inverting amplifier to be used at dc and very low frequencies. A closed-loop nominal gain of -100 is desired. Specification indicate that the error due to finite open-loop gain cannot exceed 0.1dB.

Compute mechanical energy of turbine and overall efficiency : A natural gas power plant has a condenser that extracts 18,000 Btu/kg of natural gas. Compute the mechanical energy of the turbine and the overall system efficiency.

User Account

All Pages