Due Date: Apr 19th , at beginning of c lass.
Th is is a graded group assignment . Only one submission is allowed per group. Make sure that the version you submit is the final one without any corrections. You can make reasonable assumptions, if needed. State such assumptions clearly in the assignment. Each question carries the same weightage . The overall weightage of this assignment is 10% of the course grade. You should show the steps involved in arriving at the final answer. Specify clearly what your final answer is for each question or subquestion .
10% Weightage in Course
The annual demand for a product is 13,961 units. The ordering cost is \$241 per order and each unit costs \$21.50. Annual capital taxes, storage, and spoilage costs average 0.26 (26%) of the unit cost. What is the annual cost if using the EOQ method to set the order quantity?
The average daily demand for white wine at a restaurant is 68 bottles with a standard deviation of 15 bottles. The lead time for delivery from the supplier, a California winery, is one week (seven days) from the time of order. The restaurant operates seven days a week and places an order every two weeks. The restaurant follows a periodic review system and wan ts to offer a 99% service level (CSL)
What is the average order size?
How much safety stock should be maintained?
In a continuous review reorder point system, the delivery time from the data of order placement is 14 days and the average daily demand is 178 units, with a standard deviation of 48 units. The order quantity is 9,565 units and cycle service level is 98%. What is the average inventory on hand during the year?
An explorer plans to walk through the desert. The trip will take six days. She knows that on average she consumes four bottles of water per day, with a standard deviation of three bottles per day. If she wants to be 99% sure that she will not run out of water, how many bottles does she need to carry?
Demand at Case for disposable coffee cups average 10,000 per month (4.33 weeks) with a standard deviation of 1,000 cups. The lead time is three weeks from time of order to delivery. If Case uses a continuous review inventory system with an order quantity of 20,000 cups and desire a 98% cycle service level, calculate the following:
The safety stock of cups
The reorder point for cups
The average inventory of cups
Demand at Case for disposable coffee cups averages 10,000 per month (4.33 weeks) with a standard deviation of 1,000 cups. The lead time is three weeks from time of order to delivery. If Case uses a periodic review inventory system with a monthly review periodic and desires a 98% cycle service level, calculate the following:
The safety stock of cups
The target inventory for cups
The average inventory of cups