Consider the following information for an item for which you…

Consider the following information for an item for which you must develop an inventory policy.  Annual demand:                         4000 units                                  Order cost:                                  $50 per order                            Per unit holding cost / year:      25% of unit purchase price    Per unit purchase cost:              $10.00 if order quantity < 1000 units                                                       $ 9.50 if 1000  5000 units If your supplier decided to stop offering the quantity discounts you see above, and just told you that all items would cost $10 each, your economic order quantity would be

Assume a safety stock level of 40 and an order quantity of 8…

Assume a safety stock level of 40 and an order quantity of 800, along with the cost, annual demand, average demand, and average lead time information listed previously (which is repeated below): Annual demand = 5000                                                 Holding cost = $4 / unit / year Working days per year = 200 days                               Order cost = $50 Average daily demand = 25 units                                 Average lead time = 6 days The total annual order costs for this item would be

Assume a safety stock level of 40 and an order quantity of 8…

Assume a safety stock level of 40 and an order quantity of 800, along with the cost, annual demand, average demand, and average lead time information listed previously (which is repeated below): Annual demand = 5000                                                 Holding cost = $4 / unit / year Working days per year = 200 days                               Order cost = $50 Average daily demand = 25 units                                 Average lead time = 6 days How much is the extra recurring cost annually to keep you from running out of stock during half your lead times?

Assume a safety stock level of 40 and an order quantity of 8…

Assume a safety stock level of 40 and an order quantity of 800, along with the cost, annual demand, average demand, and average lead time information listed previously (which is repeated below): Annual demand = 5000                                                 Holding cost = $4 / unit / year Working days per year = 200 days                               Order cost = $50 Average daily demand = 25 units                                 Average lead time = 6 days Assume that the standard deviation of demand during the lead time was equal to 40 and you wanted a service level of 84.13%. To the nearest integer (round up if the decimal is .5), how many units per year would be short (unavailable when needed)?  (Take calculations to as many as 6 decimal places.)

For the next three questions, consider the following informa…

For the next three questions, consider the following information for an item for which you must develop an inventory policy.  Annual demand:                         4000 units                                  Order cost:                                  $50 per order                            Per unit holding cost / year:      25% of unit purchase price    Per unit purchase cost:              $10.00 if order quantity < 1000 units                                                       $ 9.50 if 1000 5000 units The only “candidate” order quantities that need to be considered for the best overall answer would be