How is the re-order level calculated if stock-outs are to be avoided?Question 8Answera.Maximum usage x minimum leadtimeb.Minimum usage x maximum leadtimec.Maximum usage x maximum leadtimed.Minimum usage x minimum leadtime

Assuming no safety stock, what is the reorder point (ROP) given an average weekly (7 days a week) demand of 350 units, a lead time of 10 days, and 300 units on hand?

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.

Athletic Apparel is trying to determine how to manage their stock of t-shirts. For one particular size and color they have an average daily demand of 15 shirts, but it varies by about 5 shirts per day. Their lead time for receiving new t-shirts is 6 days. They are striving for a 94% service level.What should be their safety stock for this particular t-shirt? (Display your answer to two decimal places.)    What should be their reorder point for this particular shirt? (Display your answer to two decimal places.)

1.If demand is not uniform and constant, then stockout risks can be controlled by  A. increasing the EOQ.  B. placing an extra order  C. raising the selling price to reduce demand  D. adding safety stock

KP organization procures and sells apparel items. The model number of one of the popular items is KP201. The company believes that the total minimum cost order quantity model assumptions are reasonably met for this particular model. Relevant data, from the files of the firm, are annual demand 40,000 units, unit value/price is $40, holding (or carrying) cost is 10% of the unit value/price, cost to replenish inventory $300 per order. Assume the number of working days in a year is 300.(a) What is the optimal order size?                                                                      (1 mark)(b) What is the optimal number of days between orders?                                   (1 mark)(c) What is the optimal total annual inventory cost of maintaining inventory?       (1 mark)(d) What will happen to the total inventory cost if they order all the 40,000 items in a lot in a year?                                                                                                                                       (1 mark)(e) What will be the total annual inventory cost if they replenish 1000 items per order?       (1 mark)