Jill's 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 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every five weeks. Data for both products are as follows:Item tegdiw wigetAnnual demand 10,000 5,000Holding cost 20% 20%Set up or order cost 150 25Lead time 4 week 1 weekSafety stock 55 units 5 unitsItem cost 10 2What is the inventory control system for widget?

Respuesta :

Answer:

a. What is the inventory control system for Tegdiws? That is, what is the reorder quantity and the reorder point for Tegdiws

• Reorder quantity= 1,225 units

• Reorder point = 11,346.29 units

b. What is the inventory control system for Widgets

• Inventory control system for Widgets is 576.9 units.

Explanation:

Please find attached detailed solution to the above questions and answers.

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