Exam 3 - Continuous Review Answers(1).pdf - eContinuous Review Practice Problems 1 Walmart sells 4500 bottles of 2 Milk a week They want to review their

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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? 2 2 What 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?