Question

In: Operations Management

Demand for hotdogs is 500 units per week. Lead time is one week. When inventory level...

Demand for hotdogs is 500 units per week. Lead time is one week. When inventory level reached 1500 units, the regional director orders 8 weeks of demand. Compute the average inventory.

A. 1000

B. 2000

C. 3000

D. 4000

E. None of the above

Demand for hamburgers is 400 units per week. Lead time is one week. When inventory level reached 1000 units, the regional director orders 6 weeks of demand. Compute the flow time.

A .1.5 weeks.
B. 3.5 weeks
C. 5 weeks
D. 4.5 weeks
E. 8 weeks

Solutions

Expert Solution

Average weekly demand (d) = 500 units

So 8 weeks of demand = 500 units x 8 = 4000 units

Therefore the order quantity (Q) = 4000 units

Average inventory = Q/2 = 4000/2 = 2000 units

So the answer is option B

keosha answered 1 year ago
Next > < Previous

Related Solutions

Demand for a product is 400 units per week. Lead time is one week. When inventory...
Demand for a product is 400 units per week. Lead time is one week. When inventory level reached 1000 units, the material manager orders 6 weeks of demand. Compute the average inventory. 1000 2000 3000 1800 None of the above
Minimum order quantity is 500 units, lead time is 1 week. What is/are the Net Requirements for week 8?
Week 7 8 9 10 11 12 Gross Requirements 0 300 400 400 400 200 Scheduled Receipts 500 Projected ending inventory: 100 100 Net requirements ??? Planned Receipts Planned orders Q1: Minimum order quantity is 500 units, lead time is 1 week. What is/are the Net Requirements for week 8? a. 300 units. b. None of these answers is correct. c. 500 units. d. Negative 300 units. e. 0 units. Week 7 8 9 10 11 12 Gross Requirements 0...
1. The MAD for a forecast is one unit per week. If the lead time is...
1. The MAD for a forecast is one unit per week. If the lead time is one month, what will be the standard deviation of the forecast error for one month (assuming 4 weeks in a month). Please enter your answer to two decimal places. 2. The MAD for a forecast is one unit per week. If the lead time is one year, what will be the standard deviation of the forecast error for one year (assuming 52 weeks in...
Q5: Minimum order quantity is 500 units, lead time is 1 week. What is/are the Planned Receipts for week 9?
Week 7 8 9 10 11 12 Gross Requirements 0 300 400 400 400 200 Scheduled Receipts 500 Projected ending inventory: 100 100 Net requirements Planned Receipts ??? Planned orders Q5: Minimum order quantity is 500 units, lead time is 1 week. What is/are the Planned Receipts for week 9? a. None of these answers are correct. b. 100 units. c. 0 units. d. 500 units. e. 400 units. Week 7 8 9 10 11 12 Gross Requirements 0 300...
Average lead time demand in a warehouse is 24000 units. The standard deviation of lead time...
Average lead time demand in a warehouse is 24000 units. The standard deviation of lead time demand is 5500 units. The warehouse orders 60000 units whenever inventory reaches 28000 units. What is the service level? A) around 72% B) around 81% C) around 77% D) around 89% E) none of the above
The current policy is to order 100,000 units when the inventory level falls to 35,000 units....
The current policy is to order 100,000 units when the inventory level falls to 35,000 units. However, forecast demand to meet market requirements for next year is 625,000 units. The cost of placing and processing an order is R250, while the annual cost of holding a unit in stores is 5% of the unit purchase price. Both costs are expected to be constant during the next year. Shop n Pay sells a unit of the product for R15.00 at cost...
B. Inventory management The current policy is to order 100,000 units when the inventory level falls...
B. Inventory management The current policy is to order 100,000 units when the inventory level falls to 35,000 units. However, forecast demand to meet market requirements for next year is 625,000 units. The cost of placing and processing an order is R250, while the annual cost of holding a unit in stores is 5% of the unit purchase price. Both costs are expected to be constant during the next year. Shop n Pay sells a unit of the product for...
B. Inventory management The current policy is to order 100,000 units when the inventory level falls...
B. Inventory management The current policy is to order 100,000 units when the inventory level falls to 35,000 units. However, forecast demand to meet market requirements for next year is 625,000 units. The cost of placing and processing an order is R250, while the annual cost of holding a unit in stores is 5% of the unit purchase price. Both costs are expected to be constant during the next year. Shop n Pay sells a unit of the product for...
6. The demand for cars at Delta Motors is 500 units per month. The company incurs...
6. The demand for cars at Delta Motors is 500 units per month. The company incurs P4,000 each time an order is placed. The cost of each cycle is P500 and the holding cost is 20%. Compute the number of cars that Delta Motors should order in each replenishment lot.                   7. You just signed a contract to receive P1000 at the end of one year. If the annual interest rate is 7%, what is this worth today?              8. As at...
(This is all one question): A firm produces 400 units of output per week and this...
(This is all one question): A firm produces 400 units of output per week and this firms faced with both input and output competitive markets. This produces a revenue of $20,000 per week. The firm could use capital technology (K1) to produce output together with labor in which case each worker would need 2hours to produce 1 unit of output per unit of K1. The firm could use capital technology (K2) in which case the worker would be able to...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT