[Solved] It Is Your Responsibility, as the New Head of the Automotive

Question 59
Essay
arrowQuestion 59arrow

It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities for the various items have been correctly established. You decide to test one item and choose Michelin tires, XW size 185 × 14 BSW. A perpetual inventory system has been used, so you examine this as well as other records and come up with the following data:
img
Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of 98 percent. Assume the demand occurs 365 days per year.
a. Determine the order quantity.
b. Determine the reorder point.

Tags

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

Business

Explore our library and get Decision Science Homework Help with various study sets and a huge amount of quizzes and questions

Related Questions


Get Free Access Now!
upload
Upload

Get free access by uploading any valuable academic documents

Invite
Invite

Invite your friends by sharing your unique referral link, and get a free access

Invite a friendInvite a friendInvite a friend
Join Us
Join Us

Sign up to get 5 free question for every quiz you visit. Or Subscribe and get instant access