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Course 5860
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According to the normal curve in inventory management, which statement is true?
Which of the following is an advantage of cycle counting?
What is the starting point for each warehouse sizing method?
Mira’s NordicChair company sells stylish dining chairs across Sweden. During the past year, Mira’s NordicChair reported cost of goods sold on its income statement of €750,000.
Mira’s NordicChair’s beginning inventory was €2,100,000 and its ending inventory was €2,900,000.
Calculate Mira’s NordicChair’s inventory turnover ratio.
For an independent demand item, demand is 250 units per week, the lead time is 3 weeks, and safety stock is 120 units. What is the order point?
A regional warehouse orders items once a week from a central warehouse. The truck arrives 4 days after the order is placed. The warehouse operates 6 days a week. For a particular brand and size of chicken soup, the demand is fairly steady at 30 cases per day. Safety stock is set at 2 days’ supply.
a. What is the target level? Provide your answer as a whole number!
Your answer: The target level is cases.
A regional warehouse orders items once a week from a central warehouse. The truck arrives 4 days after the order is placed. The warehouse operates 6 days a week. For a particular brand and size of chicken soup, the demand is fairly steady at 30 cases per day. Safety stock is set at 2 days’ supply.
b. If the quantity on hand is 100 cases, how many should be ordered?
Your answer: Order quantity is cases.
A company stocks an SKU with a weekly demand of 90 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 20 and the order quantity is 450 units, what is the average inventory and the order point?
Calculate:
e. Order point using service level 95%. Provide your answer as a whole number
A company stocks an SKU with a weekly demand of 90 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 20 and the order quantity is 450 units, what is the average inventory and the order point?
Calculate:
d. Average inventory using service level 95%. Provide your answer as a whole number
Your answer: The average inventory is .
A company stocks an SKU with a weekly demand of 90 units and a lead time of 4 weeks. Management will tolerate one stockout per year. If sigma for the lead time is 20 and the order quantity is 450 units, what is the average inventory and the order point?
Calculate:
c. Management decides they want to have service level of 95%. How much safety stock is needed? Provide your answer as a whole number.
Your answer: The safety stock is units.