way operations and supply chain managers counteract the negative aspect of this

Way operations and supply chain managers counteract

This preview shows page 1 - 3 out of 3 pages.

way operations and supply chain managers counteract the negative aspect of this fact isby holding a safety stock in a single location instead of multiple locations. Several locations then share these inventories to lower overall holding costs.The order quantity in a periodic review system rises as the on-hand inventory falls. T As the average demand rises, the standard deviation of demand falls. F.Ollah's Organic Pet Shop sells about 4000 bags offree-range dog biscuits every year. The fixed ordering cost is $15 and the cost of holding a bag in inventory for a year is $2.00. z valueAssociated service level0.8480%1.2890%1.6595%2.3399%3.0899.9%What is the economic order quantity for the biscuits?(sqroot ((2)(4000*15)/2)=245 roundedb. Suppose Ollah decides to order 200 bags at a time. What would the total ordering and holding costs for the year be? (For this problem, don't consider safety stock when calculating holding costs.)The total ordering and holding costs are
Inventory that is"inthepipeline"moving from one link to another is TransportationManagers must decide where in the supply chain to hold inventory. In general, the

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture