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- 1. William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H a) Define inventory management. = 19,500 units/year = $25/order = $4/unit/yearFirm Tezla produces the product QuickCar. Annual demand for QuickCar is 600 units per year on a continuous basis. The product has inventory holding costs of $30 per unit per year and order costs of $300 per order. It takes 30 days to receive a shipment after an order is placed. Calculate the economic order quantity (EOQ). a. 77 units b. 110 units c. 60 units d. 44 unitsAverage demand (µ) 480 Demand Standard deviation (σdLT) 35 Service level 85% Service level alternate 89% 1. What is the required safety stock at a 85 percent service level? ______ units 2. What is the reorder point? ______ units 3.What is the required safety stock at a 89 percent service level? ______ units 4. What is the additional safety stock? ______ units
- Xemex has collected the following inventory data for the six items that it stocks: ITEM CODE UNIT COST ($) ANNUAL DEMAND (UNITS) ORDERING COST ($) CARRYING COST AS A PERCENTAGE OF UNIT COST 1 10.60 600 40 20 2 11.00 450 30 25 3 2.25 500 50 15 4 150.00 560 40 15 5 4.00 540 35 16 6 4.10 490 40 17 Lynn Robinson, Xemex’s inventory manager, does not feel that all of the items can be controlled. What ordered quantities do you recommend for which inventory product(s)?Historical records on the use of spare parts for several large hydraulic presses are to serve asan estimate of usage for spares of a newly installed press. Stockout costs involve downtimeexpenses and special ordering costs. These average $4,200 per unit short. Spares cost $800each, and unused parts have zero salvage. Determine the optimal stocking level.Spares Used Relative Frequency Cumulative Frequency0 .20 .201 .40 .602 .30 .903 .10 1.004 or more .001.00Q2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually. Q2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually.
- Please explain me in brief about Pros and Cons of Re-Order Point Control and Re-Order Cycle Control Inventory control Systems.Master Company has obtained the following costs and other information pertaining to one of its materials: Working days per year Normal use per day (units) Maximum use per day (units) 250 Lead time ( in days) 500 Cost of placing one order Р36 600 Carrying cost per unit per year P4 Required: a. Calculate the economic order quantity b. Determinethe safety stock c. Compute the order pointExplore the role and implications of safety stock within the framework of the Wilson approach for effective inventory control.
- Average daily demand (d) 80 units Standard deviation of daily demand (σd) 24 units Average lead time (LT) 6 days Standard deviation of lead time (σLT) 2 days Service level 91% 1. What is the required safety stock at a 91 percent service level? _______ units 2. What is the reorder point? _______ unitsOutline the objectives of coking stock keeping unit?Just need f. Average weekly demand (52 weeks per year): 71 printers Standard deviation of weekly demand: 19 printers Order lead time: 5 weeks Standard deviation of order lead time: 0 (lead times are constant) Item cost: $170 per printer Cost to place an order: $5 Yearly holding cost per printer: $39 Desired service level during reordering period: 95% (z=1.65)