I’m working on a excel spreadsheet and need guidance to help me learn.
High Tech Inc. is a virtual store that stocks a variety of calculators in its warehouse. Customer orders are placed, the orders are picked and packaged, and then orders are shipped to the customers. A fixed-order quantity inventory control system (FQS) helps monitor and control these Stock Keeping Units (SKUs). The following information is for one of the calculators that High Tech stocks, sells, and ships.
Average Demand12.5 calculators per weekLead time3 weeksOrder cost$20/orderUnit cost$8.00Carrying charge rate0.25Number of weeks52 weeks per yearStandard deviation of weekly demand3.75 calculatorsSKU service level95 percentCurrent on-hand inventory35 calculatorsBackorders2 calculators
What is the economic order quantity?
What are the total annual order and inventory holding costs for EOQ?
What is the reorder point without safety stock?
What is the reorder point with safety stock?
Based on the previous information, should a fixed order quantity be placed, and if so, for how many calculators?
0 comments