inventory exercise -2007F

inventory exercise -2007F - item is demanded 50 weeks a...

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In class exercise of “Inventory Mgt and Control” 1. You would like to develop an inventory ordering policy of a 95% probability of not stocking out. Demand for the products is 5000 unit per year. Your store opens 365 days a year. Every two weeks (14 days) inventory is counted and a new order is placed. It takes 10 days for the products to be delivered. Standard deviation of demand is 5 per day. You have 150 units on hand right now. How many should you order? 2. Given the following information, formulate an inventory management system. The
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Unformatted text preview: item is demanded 50 weeks a year. Item cost: $10; order cost $250; annual holding cost: 33% of item cost; weekly demand: 515units; standard deviation of weekly demand: 25 units/week; lead time: 1 week; service level: 95%. a) State the order quantity and reorder point. b) Determine the annual cost. c) If a price break of $50 per order was offered for purchase quantities of over 2000, would you take advantage of it? How much would you save annually?...
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This lab report was uploaded on 04/18/2008 for the course MGBU 3438 taught by Professor Dr.sarahj.wu during the Spring '08 term at Fordham.

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inventory exercise -2007F - item is demanded 50 weeks a...

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