Question 5: P-Model 6 points Using the fixed-time period inventory model, and given an average daily demand of 171 units with standard deviation 7, 10 days between inventory reviews, 3 days for lead time, 73 units of inventory on hand, a z-score of 1.96, what is the order quantity? Please round up to a whole number.  Locally stored answer:  Question 6: Safety Stock A local service station is open 7 days per week, 365 days per year. Sales of 10W40 grade premium oil average 19 cans per day. Inventory holding costs are $2 per can per year. Ordering costs are $10 per order. Lead time is 2 weeks. Backorders are not practical -- the motorist drives away. Part a: 4 points Based on these data, choose the appropriate inventory model and calculate the economic order quantity. Please round to a whole number.  Locally stored answer:  The boss is concerned about this model because demand really varies. The standard deviation of demand was determined from a data sample to be 6.60 cans per day. The manager wants a 99.5 percent service probability. Determine a new inventory plan based on this information and the data above. Part b: 4 points What is the standard deviation of the demand during the lead time? (Keep two decimals.)  Locally stored answer:  Part c: 4 points What is the z-score of the given service level?  Locally stored answer:  Part d: 4 points What is the safety stock?  Locally stored answer:  Part e: 4 points What is the reorder point?  Locally stored answer:  Question 7: Reorder Point 4 points A key difference between a fixed-order quantity inventory model, where demand is known and one where demand is uncertain, is in computing the reorder point. Please answer 'True' or 'False'.  Locally stored answer:  Question 8: Safety Stock 4 points Safety stock can be defined as the amount of inventory carried in addition to the expected demand. Please answer 'True' or 'False'.  Locally stored answer:  Question 9: P-Model 4 points Fixed-time period inventory models generate order quantities that may vary from time period to time period, depending on the usage rate. Please answer 'True' or 'False'.  Locally stored answer:  Question 10: P-Model 2 4 points In the fixed-time period model it is necessary to determine the inventory currently on hand to calculate the size of the order to place with a vendor. Please answer 'True' or 'False'.  Locally stored answer:  Question 11: Reorder Point 6 points Assuming no safety stock, what is the re-order point (ROP) given an average daily demand of 55 units, a lead time of 3 days and 854 units on hand?  Locally stored answer:  Question 12: Reorder Point 2 6 points A company wants to determine its reorder point (ROP). Demand is variable and they want to build a safety stock into ROP. If the average daily demand is 8, the lead time is 3 days, the desired z-value is 1.96, and the standard deviation of usage during a single day is 2.36, what is the desired value of ROP?  Locally stored answer:  Question 13: Standard Deviation

Question 1: Lead Time Demand and Safety Stock 4 points If demand for an item is normally distributed and the lead time is 2 days, then we plan for demand during the lead time to be twice the average daily demand and carry 2 standard deviations worth of safety stock inventory. Please answer 'True' or 'False'.  Locally stored answer:  Question 2: P-Model vs Q-Model 4 points The fixed-time period inventory system has a smaller average inventory than the fixed-order quantity system because it must also protect against stockouts during the review period when inventory is checked. Please answer 'True' or 'False'.  Locally stored answer:  Question 3: Mean Lead Time Demand 8 points A company has recorded the last five days of daily demand on their only product. Those values are 148, 125, 125, 123, and 136. The time from when an order is placed to when it arrives at the company from its vendor is 2 days. Assuming the basic fixed-order quantity inventory model fits this situation and no safety stock is needed, what is the reorder point (ROP)?  Locally stored answer:  Question 4: Order Quantity in P-Model 4 points Which of the following is not required to compute the order quantity using the fixed-time period model with safety stock? * A) Forecast of average daily demand. * B) Safety stock. * C) Inventory currently on hand. * D) Ordering cost. * E) Lead time in days.

An item has a lead time of six weeks and an average demand of 150 units per week. The safety stock for the item is 300 units. At what point should the item be before an order is placed.

Time left 0:50:09Question 5Not yet answeredMarked out of 1.00Flag questionTipsQuestion textAn entity just starting business made the following four inventory purchases in June:            June     1          150 units                     $1,500            June     10        130 units                       1,170            June     15        90 units                         1,260            June     23        110 units                          990                                                                        $4,920A physical count of inventory on June 30 reveals that there are 20 units on hand. Using the weighted average cost method the amount allocated to the ending inventory on June 30 is:Question 5Answera.$205b.$180c.$220d.$200

Consider a periodic review system with a lead time of two weeks and a review period of seven weeks.  If the average demand per week is 1000 units and 300 units of safety stock are held, what should the target inventory level be?a.1300b.9000c.9300d.7300

Question 1 Palin's Muffler Shop has one standard muffler that fits a large variety of cars. The shop wishes to establish a periodic review system to manage inventory of this standard muffler. Use the information in the following table to determine the optimal inventory target level (or order-up-to level). Annual demand 3,000 mufflers Standard deviation of daily demand 6 mufflers per working day Item cost $30 per muffler Annual holding cost 25% of item value Review period 15 working days Ordering cost $50 per order Service probability 90% Lead time 2 working days Working days 300 per year If the safety stock is 4 units, and the current inventory position is 5 units, calculate the quantity to order up to? second part of the question: If nothing changes (including the safety stock and inventory position), what is the total inventory cost expected for the year? (Use the quantity calculated before and select the closest dollar value)