Monthly demand of an inventory item follows a mean of 20, Ask an Expert

Management Studies

Monthly demand of an inventory item follows a mean of 20 units and a variance of 4. Demand of the inventory is 12 units / month. When the inventory reaches a pre-determined level, an order for replenishment is placed. The ordering cost is $60/order/year and the holding cost is 25% of the cost of the item. The cost of the item is $4. The replenishment lead time is 4 months. Furthermore, the Z-value required to achieve a 90% service level (in other words, z90%) is given as 1.28. Based on the data above determine,

a. The Economic Order Quantity (EOQ)

b. Reorder Point (ROP)

c. Safety Stock (SS)

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9350653

Have any Question?Write your Review or question?

Related Questions in Operation Management

Question write a two page report on why the menu affects so

Question : Write a two page report on why the menu affects so many parts of the operation and how successful menu design and engineering can help the profitability of an operation. APA format

Determining developmental planningthe differences between

Determining Developmental Planning The differences between employee development, employee training, and career management can often be blurred because of the multiple activities associated with each process. All of these ...

1 write a one-page response detailing how is small business

1. Write a one-page response detailing How is small business management different from entrepreneurship? 2. Write a brief summary of the connection between social responsibility, ethics, and strategic planning in a small ...

Consider again the company making tires for bikes is

Consider again the company making tires for bikes is concerned about the exact width of their cyclocross tires. The company has a lower specification limit of 23 mm and an upper specification limit of 23.2 mm. The standa ...

1 define and describe what professionalism isdiscuss

1. Define and describe what professionalism is. Discuss professional interview attire, workplace attire, etc. What are the expectations? Write 500 - 750 words APA style paper. 2. Identify a company that you would like to ...

Awareness of cultural diversity is crucial for effective

Awareness of cultural diversity is crucial for effective cross-cultural communication. The key to effective cross-cultural communication is knowledge. When people understand the potential problems of cross-cultural commu ...

The national labor relations act of the wagner act of 1935

The National Labor Relations Act of the Wagner Act of 1935. guarantees to non-supervisory employees the right to self-organize, choose their own representatives, and bargain collectively or to choose not to do these thin ...

1 suppose you are a human resource professional at a

1. Suppose you are a human resource professional at a company that is setting up work teams for production in sales. What group incentives would you recommend to support this new work arrangement? 2. A device may be purc ...

Prepare an aggregate plan for the coming year assuming that

Prepare an aggregate plan for the coming year, assuming that the sales forecast is perfect. Use the worksheet “Bradford Manufacturing” that is in the “19 Sales and Operations Planning” spreadsheet. In the worksheet, an a ...

Specify at least two 2 examples of quality initiatives that

Specify at least two (2) examples of quality initiatives that could potentially reduce healthcare cost. Illustrate, with real-world examples, the capacity to which healthcare cost affects healthcare quality in the United ...

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