dolution
dolution.
A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 52 weeks per year. Only when it is open for busines can orders be received. The following data are estimated for the countertop mixer.
Average daily demand=100 Mixers Standard deviation of daily demand (oa) = 30 mixers Lead time (L) =3 days Holding cost-$9.40/unit/’year Ordering cost-$35/order Cycle-service level =92 percent The distributor uses a continuous review (0) system b. a. What order quantity Q, and reorder point, R, should be used? What is the total annual cost of the system? c. If on-hand inventory is 40 units, one open order for 440 mixers is pending, and no backorders exist, should a new order be placed?
Average daily demand=100 Mixers Standard deviation of daily demand (oa) = 30 mixers Lead time (L) =3 days Holding cost-$9.40/unit/’year Ordering cost-$35/order Cycle-service level =92 percent The distributor uses a continuous review (0) system b. a. What order quantity Q, and reorder point, R, should be used? What is the total annual cost of the system? c. If on-hand inventory is 40 units, one open order for 440 mixers is pending, and no backorders exist, should a new order be placed?
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now