Q2.2. What reorder point should be?
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- For fixed order quantity inventory system, which of the following costs is increased when order size (Q) is increased? a) Setup cost b) Ordering cost c) Start-up quality cost d) Insurance cost e) Receiving inspection costPlease do not give solution in image format thanku Carousel Restaurant in Coquitlam is using perpetual inventory control method. Determine the reorder quantity of chickpeas cans if the par stock is 25 cans, delivery takes 5 days, the daily usage is 2 cans and the desired safety factor is 1.5 a. 10 b. 20 c. 25 d. 15The Rocky Corporation Sells fresh tomatoes at the Rutland Farmer's Market, the tomatoes cannot be carried over to the next order cycle (spoilage). The company purchases this product from a supplier for $12/unit. The product is then resold for $24/unit. Any product unsold, is sold to an organic farmer for pig feed and Rocky receives $2/unit. a. What is the cost of under supply? b. What is the cost of over supply? c. What percentage of the time during the reorder period should Rocky be able to satisfy demand for this product (SLP)?
- Under which circumstances would you use single period/newsboy model for inventory management?1. What are some of the advantages of using sage 50 inventory system 2. Identify the steps to set up inventory item in sage 50 3. Explain the implication of sage 50 as an integrated system Plagiarism =o Write in good English language with examplesExplain the concept of setup or ordering costs and its relevance to EOQ.
- Reorder Point Ordering: Average demand per day () is 25 units, with a std. dev. of (od) 15 units. Lead time (LT) is 49 days. Find demand during lead time (DDL), safety stock (SS) and reorder point (ROP ) for 4-sigma (z = 4). DDL= 500 units, SS = 1225 units, ROP = 1645 units DDL= 1,645 units, SS=420 units, ROP = 1225 units DDL= 1,225 units, SS = 420 units, ROP = 1645 units DDL= 0 units, SS = 1225 units, ROP = 420 units DDL= 420 units, SS = 1645 units, ROP = 420 unitsReorder Point Ordering: Average daily demand ( d) is 5 units with a std. dev. (od) of 1 unit. Average lead time ( LT) is 24 days with a std. dev. (OLT) of 1 day. The inventory manager wants to operate within 3 std. deviations (z = 3). Find the reorder point (ROP) and safety stock (S). ROP=141, SS=120 ROP=141, SS=21 ROP=120, SS=21 ROP=21, SS=1417. Explain why it is not necessary to include product cost (price or price times quantity) in the EOQ model, but the quantity inventory system. discount model requires this information.
- Please do not give solution in image format thanku Daily demand for Chandler's Footballs varies according to the normal distribution with a mean of 195 and a standard deviation of 12. The lead time is 3 days. If Chandler wants a 98.5% level of service, what should his reorder point be?Caring Hospital’s dispensary reorders doses of a drug when the supply on hand falls to 18 units.Lead time for resupply is three days. Given the typical usage over the last 10 days, what servicelevel is achieved with the hospital’s reorder policy? (Hint: Use Formula 13–13.)Day 1 2 3 4 5 6 7 8 9 10Units 3 4 7 5 5 6 4 3 4 5a) Cycle Inventory b) Total cost c) Reorder level if lead time is constant at 4 days