Description
Quiz Instructions
Also, please remember that you are to complete this assignment on your own. Any help given or received constitutes cheating. If you have any general questions about the assignment, please post to the Piazza board. If your question involves specific references to the answer to a question or questions, please be sure to mark your post as private.
Question 4 1 pts
4. A company that markets portable EKG machines to hospitals wants to rationalize its inventory costs using EOQ. Demand is 1,000 machines per year and it costs $10 to place an order. Holding cost is $.50. What recommendation would you make?
Question
5. The average demand for iPhones at the local Walmart is 15 units a day with a standard deviation of 5. It takes 2 days to get more once a new order is placed. The company has a no more than 10% stock out policy. What is the reorder point? (Take z-score of 90% as
1.28)
Question
3. The Reorder Point tell us, at what inventory level, should we place an order for more stock.
Question
7. Sam Flynn is in charge of maintaining motorcycles for Tron Inc. During the past year (250 working days), he replaced 1,000 tires a day (yes he is fast!) with a standard deviation of 100 tires/day. There is a 2 day lead time to get more and his boss Quorra wants a 97% service level. How much safety stock should he keep? (Take z-score of
97% as 1.88)
Question
6. Dahlonega Rehab Motors has an annual demand for motors of 1,400 units. The cost of a typical motor is $400. Carrying costs are estimated to be 20% of unit cost and the ordering cost is $25 per order. If Dahlonega Rehab orders in quantities of 300 or more, they get a 5% discount. If they are interested in minimizing told cost, should they take the discount?
a. Yes. Order 300 each time. Total cost with the discount is less than EOQ with no discount.
b. No. Order 30 each time. Total cost with the discount is more than EOQ with no discount.
Question
9. What is EOQ?
Question 9-10 – Details
Use the following for Questions 9-10:
Waffle Falafel Abode is a small diner in Atlanta that is open 300 days a year. They use high End Ostrich eggs in making breakfast. Demand for Ostrich eggs is constant at 6,000 units per year. It costs $30 on average to place an order. Inventory holding costs are $10 per egg per year. Orders always arrive in 4 days. They want to come up with an inventory policy for this environment.
Question 8 1 pts
8. For the prior question, what is the reorder point?
Question 10 1 pts
10. What is the ROP?
