Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every four weeks. Data for both products are as follows: ITEM Annual demand Holding cost (% of item cost) Setup or order cost Lead time Safety stock Item cost TEGDIW 11,000 10 % $110.00 Optimal reorder quantity Reorder point 4 weeks 65 units $15 a. What is the reorder quantity and reorder point for Tegdiws? Note: Round your answers to the nearest whole number. Answer is complete but not entirely correct. 550 x units 911✔ units WIDGET 8,000 20 % $10.00 4 week 7 units $8
Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every four weeks. Data for both products are as follows: ITEM Annual demand Holding cost (% of item cost) Setup or order cost Lead time Safety stock Item cost TEGDIW 11,000 10 % $110.00 Optimal reorder quantity Reorder point 4 weeks 65 units $15 a. What is the reorder quantity and reorder point for Tegdiws? Note: Round your answers to the nearest whole number. Answer is complete but not entirely correct. 550 x units 911✔ units WIDGET 8,000 20 % $10.00 4 week 7 units $8
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Operations Management CH 11
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Question 7, Part A & B
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