Answer the following questions. Show detailed solutions.
ABC Hardware store is open for business 350 days a year. Annual demand for a power cutter at this store is 700 units. Replenishment cost is $15 per order, and annual inventory holding cost is 10% of the inventory value. ABC pays $20 for each power cutter. What is the economic order quantity for this cutter, and what is the reorder point if the lead time is 5 days and ABC policy is to keep a safety stock of 10 units?
The following time-phasing chart is available for a single item within an MRP system. Complete this chart by estimating inventory on hand and planned order release values. Lead time is 2 weeks, and order policy is 100 units, which means this part can be ordered only in 100-unit batches. Inventory replenishment is JIT; lead times are negligible.
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ABC Hardware store is o appeared first on study tools.