Problemjohnson corporation has the following information, Ask an Expert

Management Studies

Problem:

Johnson corporation has the following information about a product that it carries in stock: Average demand= 40 units per day Average lead time= 15 days Item unit cost= $55 for orders of less than 400 units Item unit cost= $50 for orders of 400 units or more Ordering cost=$30 Inventory carrying cost= 20%... The business year is 300 and the standard deviation of demand= 2.5 units and the standard deviation of lead time=1.5days, with desired service level= 97.5%

Required:

Question 1) What's the annual total acquisition cost of ordering at the price of $55 and $50?...

Question 2) What level of safety stock should Johnson maintain for the item?

Question 3) If Johnson chooses the ordering policy that results in the lowest total annual acquisition cost and maintains the safety stock level for 97.5 percent service, what will Johnson's average inventory be for this item?

Question 4) what will the annual inventory turnover rate be for this item?

Question 5) what will the reorder point be for this item?

Solve the given numerical problem and illustrate step by step calculation.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91149534

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 a leader who is more about collaboration than command and

1. A leader who is more about collaboration than command and control would be said to be _____________ . a) an interactive leader b) visionary leader c) a transactional leader 2) James is an agreeable and emotionally sta ...

Create a swot matrix for your company or one that you are

Create a SWOT matrix for your company or one that you are familiar with, taking into account its key objectives. Please remember that Strengths and Weaknesses reflect internal factors while Opportunities and Threats repr ...

1 computer crimes go beyond individuals to companies can

1. Computer crimes go beyond individuals to companies. Can you describe an example of when computer crime was against a company? What steps can a company take to ensure they are safe? 2. What should someone who is thinki ...

A produce distributor uses 771 packing crates a month which

A produce distributor uses 771 packing crates a month, which it purchases at a cost of $9 each. The manager has assigned an annual carrying cost of 31 percent of the purchase price per crate. Ordering costs are $26. Curr ...

1 explain the difference between a ldquopullrdquo

1. Explain the difference between a “pull” promotional strategy and a “push” promotional strategy. Under what conditions should each strategy be used? 2. In management, what are the most important of the eight value chai ...

Please answer the following questionsin your opinion should

Please answer the following questions: In your opinion, should private employers be given discretion and leeway to monitor their employees? Does technology today make such monitoring overly invasive, such as badges that ...

1 what are some challenges that salespeople in your company

1. What are some challenges that salespeople in your company might encounter? Please explain it in 500 words. 2. Briefly describe the two main layout types. Provide the main advantages and disadvantages of both types. Wh ...

Assignment-introduction to international businessassignment

ASSIGNMENT-Introduction to International Business Assignment Purposes/Outcomes: After completion of this assignment students will able to Evaluate what International Trade is. Demonstrate how International trade is accel ...

Total quality managementcreate a rank-ordered list of best

Total Quality Management" Create a rank-ordered list of best practices concerning TQM that would be applicable to all hotels. Please provide specific examples. From the perspective of hotel management, determine which as ...

According to research learning is perhaps a most essential

According to research, learning is perhaps a most essential phenomena of our cognitive experience. As we develop our characteristics, which is usually during the first 5 years of our lives, we tend to absorb our surround ...

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