Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from...

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Jill's Job Shop buys two parts (Tegdiws and Widgets) for use inits production system from two different suppliers. The parts areneeded throughout the entire 52-week year. Tegdiws are used at arelatively constant rate and are ordered whenever the remainingquantity drops to the reorder level. Widgets are ordered from asupplier who stops by every five weeks. Data for both products areas follows:
ITEM TEGDIW WIDGET
Annual demand 14,000 9,000
Holding cost (% of item cost) 20 % 15 %
Setup or order cost $ 110.00 $ 15.00
Lead time 6 weeks 2 weeks
Safety stock 40 units 6 units
Item cost $ 5 $ 4
a. What is the reorder quantity and reorderpoint for Tegdiws? (Round your answers to the nearest wholenumber.)
Optimal reorder quantity units
Reorder point units
b. What is the inventory control system forWidgets? (Round your answer to the nearest wholenumber.)
Inventory control system for Widgets q = ?I (Inventory on hand)

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Question Jills Job Shop buys two parts Tegdiws and Widgets for use in its production system from two different suppliers The parts are needed throughout the entire 52week year Tegdiws are used at a relatively constant rate and are ordered See Answer

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ITEM	TEGDIW			WIDGET
Annual demand		14,000			9,000
Holding cost (% of item cost)		20	%		15	%
Setup or order cost	$	110.00		$	15.00
Lead time		6	weeks		2	weeks
Safety stock		40	units		6	units
Item cost	$	5		$	4