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Question 1 A wholesaler has 8,450 units outstanding for part X 100 on existing customers orders; there are 3,925 units in inventory and the calculated free inventory is 5,525 units. How many units does the wholesaler have an order with his supplier? Question 2 A large retailer with multiple outlets maintains a central warehouse from which the outlets are supplied. The following information is available for Part Number SF525. Average usage Minimum usage Maximum usage Lead time for replenishment Re order quantity Re order level 350 per day 180 per day 420 per day 11-15 days 6,500 units 6,300 units
a. Based on the data above, what is the maximum level of inventory? b. Based on the data above, what is the approximate number of Part Number SF525 carried as buffer inventory? Question 3 A company is able to manufacture its own components for inventory at the rate of 4,000 units a week. Demand for the component is at the rate of 2,000 units a week. Set up costs for each production run are $50. The cost of holding one unit of inventory is $0.001 a week. Required Calculate the economic production run.
Ibrahim Sameer
Tutorial Questions
Question 6 The demand for a product is 13,550 units for a three month period. Each unit of product has a purchase price of $18 and ordering cost are $23 per order placed.
Ibrahim Sameer
Tutorial Questions
Ibrahim Sameer
Tutorial Questions