Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 30 Jul 2017 My Price 7.00

GROW Garden Center

GROW Garden Center sells Raincloud automatic sprinkler valves. The valves cost GROW $8.75 each, and GROW uses an annual holding cost rate of 24%. The cost to place an order with Raincloud is approximately $30. Demand over the past eight weeks has been as follows:

GROW uses a simple eight-week moving average to forecast average annual demand and average lead time demand. Lead time for delivery is two weeks, and GROW desires a cycle service level of 96%. GROW estimates that lead time demand follows a normal distribution with a standard deviation of 5.45 units. On the basis of this information, determine:

a. The optimal inventory policy (order quantity and reorder point) for the sprinkler valves.

b. The number of calendar days between orders (cycle time).

c. The total annual inventory cost (holding, ordering, procurement) for this policy.

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Jul 2017 12:07 PM My Price 7.00

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