eContinuous Review: Practice Problems: 1.Walmart sells 4500 bottles of 2% Milk a week. They want to review their inventory policy to cut costs. The 2% Milk bottle sells for $1.20. Walmart currently orders 60,000 bottles at a time and the cost to place an order is $100. The lead time is 1 week and holding cost is $1.00 per unit per year. What is the Economic Order Quantity and ROP? What is the total cost of the current policy? ?𝑄(What is the total cost of the new EOQ policy? ?𝑄(What is the time between orders for the new policy? 2.Walmart (in a continuation of problem 1 above) has recently hired a Supply Chan intern. He is tasked to account for the uncertainty in Demand and Lead times. He calculated the standard
How much Safety Stock is needed? 22What is the new ROP? What is the new total cost of the new inventory policy including safety stock? ?𝑄(3.The Academy store in Katy sells 750 pairs of sports shoes a week. They want to review their inventory policy. The average selling price for shoes is $120. Academy currently orders 2000 shoes at a time and the cost to order is $1000. The lead time on the order is 2 weeks and holding cost is $125 per unit per year. What is the Economic Order Quantity and ROP?