Please answer Given and Find 13. Fixed-Order Quantity Inventory Model, Economic

Question

Please answer Given and Find

13. Fixed-Order Quantity Inventory Model, Economic Order Quantity Problem. (6 points) Ray's Satellite Emporium wishes to determine the best order size (O) for its best-selling satellite dish (model TS111). Ray has estimated that the annual demand (D unityear) for this model is 3,000 units per year. His holding or carrying cost (Ci unithyear) is S100 per unit per year and he has estimated that his ordering costs (Co Sorder) is $35 per order. Using the EOQ model, how may should Ray order eaclh time? Given: Find: 14. Fixed-Order Quantity Inventory Model with Safety Stock Problem. (6 points) A company wants to determine its Reorder Point (ROP). Its demand situation is uncertain and they want to build into the Reorder Point a safety stock. The company wants to have a level of service of 90 percent. If the average daily demand (d-bar wits/day) is 10 units/day, the lead time (L) is 5 days, and the standard deviation of usage during lead time (a L) is 4, what is the Reorder Point (ROP)? Given: Find:

Explanation / Answer

13 Given Annual Demand 3000 Ordering Cost $    35.00 Holding Cost /Carrying Cost $ 100.00 Find EOQ = 2AO / H where A = Annual Demand O = Ordering Cost per order H = Holding Cost per unit per annum EOQ = 2AO / H = (2 * 3000 * 35) / 100 = 45.82576 or, 43 units 14 Given Mean Demand 10 Lead Time (days) 5 Standard Deviation of Lead Time (sdL) 4 Service Level Desired 90% Find Z Value at 90% 1.282 Safety Stock for 90% service level Z value * sdL 5 Lead Time Demand ( Lead Time * Avg Demand) 50 Reorder Point = Lead Time Demand + Safety Stock 55 15 Given Mean Demand 175 P - Invetory Review Time (days) 30 L - Lead Time (days) 10 On hand Inventory 50 Service Level Desired 95% Std Dev (P,L) 80 Find Z Value at 95% 1.645 Safety Stock for 95% service level Safety stock = z * Std Dev (P,L) 132 Average demand during the protection interval (P+L) * Mean Demand 7000 T = Average demand during the protection interval + Safety stock - Inventory in hand = 7000 + 132 - 50 7082 = 7082

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.