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Operations Management
The following particulars were collected for the year 2015 from Need LLC Monthly demand -2,000 units Cost of placing an order RO 225. Annual carrying cost per unit 8% Purchase price of input unit RO 350 Minimum usage 30 units per week Maximum usage 50 units per week Re-order period 6 to 8 weeks. For emergency purchase 4 weeks    Required: (a) Re-order quantity (b) Re-order level (c) Minimum level (d) Maximum level (e) Average Stock Level (f) Danger level

The following particulars were collected for the year 2015 from Need LLC Monthly demand -2,000 units Cost of placing an order RO 225. Annual carrying cost per unit 8% Purchase price of input unit RO 350 Minimum usage 30 units per week Maximum usage 50 units per week Re-order period 6 to 8 weeks. For emergency purchase 4 weeks    Required: (a) Re-order quantity (b) Re-order level (c) Minimum level (d) Maximum level (e) Average Stock Level (f) Danger level

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The following particulars were collected for the year 2015 from Need LLC
Monthly demand -2,000 units
Cost of placing an order RO 225.
Annual carrying cost per unit 8%
Purchase price of input unit RO 350
Minimum usage 30 units per week
Maximum usage 50 units per week
Re-order period 6 to 8 weeks.
For emergency purchase 4 weeks 

 

Required:
(a) Re-order quantity
(b) Re-order level
(c) Minimum level
(d) Maximum level
(e) Average Stock Level
(f) Danger level 

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