Question

In: Operations Management

22. Store B orders on a weekly basis. Its weekly demand is 50 units with a...

22. Store B orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. a) What is Store B’s weekly inventory holding cost if lead time is two weeks? b) What is Store B’s weekly inventory holding cost per unit?

Solutions

Expert Solution


Related Solutions

Store B orders on a weekly basis. Its weekly demand is 50 units with a standard...
Store B orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. a) What is Store B’s weekly inventory holding cost if lead time is two weeks? b) What is Store B’s weekly inventory holding cost per unit?
Store B orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units.
Store B orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired.C&A reports annual sales of $30 million, cost of goods sold of $15 million, inventory of $5 million, and net income of $2 million. What is C&A’s:
Store B orders on a weekly basis. Its weekly demand is 50 unitswith a standard...
Store B orders on a weekly basis. Its weekly demand is 50 units with a standard deviation of five units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired.a) What is Store B’s weekly inventory holding cost if lead time is two weeks?b) What is Store B’s weekly inventory holding cost per unit?
Store B orders on a weekly basis. Its weekly demand is 40 unitswith a standard...
Store B orders on a weekly basis. Its weekly demand is 40 units with a standard deviation of 10 units. The holding cost is $10 per unit per week and a 0.99 in-stock probability is desired. What is Store B’s weekly inventory holding cost per unit if lead time is two weeks?A. $32.09B. $30.09C. $24.09D. $25.09
If your weekly capacity is 500 units and your cutomer orders 700 units for delivery in...
If your weekly capacity is 500 units and your cutomer orders 700 units for delivery in fiscal week 40 (3 weeks from now), which of the following are viable / good options? Group of answer choices A. Change the plan - build some units late B. Change the plan - build some units early C. Get more capacity (OT) D. Kaizen / eliminate muda E. Turn down the order
A music store is restocked weekly. The weekly demand for a best-selling CD is normal, with...
A music store is restocked weekly. The weekly demand for a best-selling CD is normal, with mean of 200 and standard deviation of 50. These CDs cost $8.00 per piece, and the store earns $4.50 per CD sold. Excess demand is lost (salvage value is $0); Customers go to a competitor's store rather than wait for resupply. Suppose that exactly 10% of the start-of-week inventory of this CD disappears from the store without being sold; this is euphemistically known as...
Problem 2. The annual demand for a product is 15,600 units. The weekly demand is 300...
Problem 2. The annual demand for a product is 15,600 units. The weekly demand is 300 units with a standard deviation of 90 units. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit. Find the reorder point necessary to provide a 98 percent service probability. Suppose the production manager is asked to reduce the safety stock of this time by 50 percent....
A department store sells 10,000 units of handbags per year. The store orders handbags from a...
A department store sells 10,000 units of handbags per year. The store orders handbags from a manufacturer. Each time an order is placed, an ordering cost of $40 is incurred. The store pays $30 for each hand bag. The holding cost of $1 of inventory is 25 cents per year. (i.e. inventory holding rate is 25%). What is the economic order quantity?
The manager of a healthy food store has determined that the weekly demand for a popular...
The manager of a healthy food store has determined that the weekly demand for a popular type of granola is a normally distributed random variable with mean 85 pounds and standard deviation 5 pounds. If the demand for a given week falls within the lowest 2.5% of all possible values for the weekly demand, the price of the granola will be reduced for the following week. Calculate the value in pounds (lbs) for the weekly demand below which the manager...
Weekly demand at a grocery store for a brand of breakfast cereal is normally distributed with...
Weekly demand at a grocery store for a brand of breakfast cereal is normally distributed with a mean of 850 boxes and a standard deviation of 80 boxes b) What is the probability that weekly demand is: Less than 900 boxes? More than 1020 boxes? Less than 660 boxes or greater than 980 boxes?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT