The lead time for the delivery is 4days on average, with a standard deviation of3.5days....

60.1K

Verified Solution

Question

Accounting

The lead time for the delivery is 4days on average, with a standard deviation of3.5days. You use Carrier ABC, which charges $6 per motor, with a minimum shipment of 2000motors (i.e., Q=2000 motors.) Your company takes ownership of the shipment at the supplier's dock and will have to incur any holding costs from that point on. Your company's holding charge is 14%, a cycle service level of 95% (given CSL=95%, use a k=1.64)and uses a 365 days per year for planning purposes. Your company includes the cost of transportation in the cost of the motors when calculating inventory costs.

What is the expected demand (in motors) over lead time? Round your answer to the nearest integer.

What is the standard deviation of demand of motors over lead time? Round your answer to the nearest integer

What is the expected annual cycle stock holding cost? Enter a dollar value and round your answer UP to the nearest integer. e.g., If it is $31.60, enter 32.

What is the expected annual safety stock holding cost? Enter a dollar value and round your answer UP to the nearest integer. e.g., If it is $31.60, enter 32.

What is the expected annual pipeline inventory holding cost? Enter a dollar value and round your answer UP to the nearest integer. e.g., If it is $31.60, enter 32.

What is the expected annual transportation cost that Carrier ABC will charge? Enter a dollar value and round your answer UP to the nearest e.g., If it is $31.60, enter 32.integer.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students