{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

inventory exercise -2007F

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

This preview shows pages 1–2. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

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?...
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online