TOM SAMPLE Exam 2 Summer 2020 Answer Key (1).pdf - Review Session Exam 2 TOM Spring 2020 Question 15 pts MULTI PERIOD INVENTORY Everest Company is a

TOM SAMPLE Exam 2 Summer 2020 Answer Key (1).pdf - Review...

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Review Session Exam 2 TOM Spring 2020 Question 15 pts MULTI PERIOD INVENTORYEverest Company is a Nepalese based company who specializes in providing emergency medical kits to prospective Himalayan climbers.Each medical kits includes 2 tubes of antibiotic cream, medical gloves, medical tape, 10 bandages, ibuprofen, skin glue, and splint materials. Annual demand for the medical kits is 5,000. Bandages are sourced from MedCo, based in Kathmandu, at a cost of $50 per pack of five with a lead time of 1 week and transportation cost of $300 per order. Everest’s purchasing cost is $100 per order. Everest operates only during the climbing season which is 25 weeks per year. Everest estimates their annual carrying cost per bandage to be 5% of the cost per pack. Determine the Economic Order Quantity for the bandages in the emergency medical kit. Question 2 Please provide any formulas, assumptions and supporting documentation related to question 1 above for partial credit consideration. Question 3 5 pts Lead time standard deviation for bandage demand is 300 bandages. Everest tries to maintain a 99% service level (z = 2.33). Determine the Reorder Point with Safety Stock for the bandages in the emergency medical kit Question 4 Please provide any formulas, assumptions and supporting documentation related to question 3 above for partial credit consideration. Question 5 3 pts Explain the importance of EOQ in optimizing the ordering process. How will Everest Inventory Manager use these numbers in managing her inventory?
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Review Session Exam 2 TOM Spring 2020 Question 6 2 pts How many orders of bandages should be place during the year? Question 7 Please provide any formulas, assumptions and supporting documentation related to question 6 above for partial credit consideration.
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