A sporting goods company has a distribution center that, Ask an Expert

Management Studies

A sporting goods company has a distribution center that maintains inventory of fishing rods. The fishing rods have the following demand, lead time, and cost characteristics:

Average demand = 220 units per day, with a standard deviation of 21 units

Average lead time = 21 days with a standard deviation of 2 days

250 days per year

Unit cost = $24

Desired service level = 95%

Ordering cost = $64

Inventory carrying cost = 25%

a. What is the standard deviation of demand during lead time? (Round up your answer to the next whole number.)

b. How much safety stock should be carried? (Round up your answer to the next whole number.)

c. Calculate EOQ. (Round up your answer to the next whole number.)

d. Calculate annual ordering cost. (Round your answer to 2 decimal places.)

e. Calculate annual inventory carrying cost. (Round your answer to the nearest dollar amount.)

f. Calculate annual product cost. (Round your answer to the nearest dollar amount.)

g. Calculate total cost. (Round your answer to 2 decimal places.)

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93108784

Have any Question?Write your Review or question?

Related Questions in Operation Management

Proofreading to catch errorsafter you compose your message

Proofreading to Catch Errors After you compose your message, you need to proofread. The proofreading process may take longer than the composition process. You don’t want to spend a lot of time composing the message and t ...

1 describe the strengths of each of the four behavioral

1. Describe the strengths of each of the four behavioral styles and how each could be used as an asset in selling your favorite product or service. Identify some of the weaknesses of each and explain how they could damag ...

1 how is quality management implemented throughout the

1. How is quality management implemented throughout the companies that you work for or how do you implement quality management practices in achieving your personal goals? 2. For 101 consecutive days, a process engineer h ...

Workco must have the following number of workers available

Workco must have the following number of workers available during the next three months: month 1, 20; month 2, 16; month 3, 25. At the beginning of month 1, Workco has no workers. It costs Workco $100 to hire a worker an ...

Legal exercisesanswer each question and explain the basis

Legal exercises: Answer each question, and explain the basis for your answer. 1. A retailer advertised a suit for special sale at $49. A customer telephoned and asked if the retailer had size 38 in blue. When the custome ...

1 what are data sets why would a data set be developed

1. What are data sets? Why would a data set be developed? Provide some examples. 2. The organizational plan and the service utilization plan may include many elements and processes. What would you use as criteria for dev ...

1 describe the evolution of business-to-business b2b

1. Describe the evolution of business-to-business (B2B) e-commerce. 2. How does one determine whether a trial has been speedy? 3. Should the United States move to greater and stricter regulation of multinational business ...

Watch the video revenue profits and price crash course

Watch the video, Revenue, Profits, and Price: Crash Course Economics #24, to help you prepare for this week's discussion. Reply to the following prompts by using the company for which you currently work, a business with ...

You are the project manager of a 3 person it team

You are the Project Manager of a 3 person IT team, responsible for the development of a new mobile app for your customer, ElectroTacos. ElectroTacos is a local family-owned taco & burrito restaurant. The purpose of the a ...

Give me now wisdom and knowledge to go out and come in

Give me now wisdom and knowledge to go out and come in before this people, for who can govern this people of yours, which is so great?” God answered Solomon, “Because this was in your heart, and you have not asked posses ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert