Huckaby Motor Services,Inc

question 44

Essay

Huckaby Motor Services,Inc.rebuilds small electrical items such as motors,alternators,and transformers,all using a certain type of copper wire.The firm's demand for this wire is approximately normal,averaging 20 spools per week,with a standard deviation of 6 spools per week.Cost per spool is $24;ordering costs are $25 per order;inventory handling cost is $4.00 per spool per year.Acquisition lead time is four weeks.The company works 50,5-day weeks per year.
a.What is the optimal size of an order,if minimization of inventory system cost is the objective?
b.What are the safety stock and reorder point if the desired service level is 90%?

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Definitions:

Short-term Memory

Part of the memory system with a relatively limited capacity that can hold information in an easily accessible state for a short period.

Working Memory

A cognitive system responsible for temporarily holding information available for processing.

Shadow Memory

A concept often used in computing and psychology to describe a process or storage that exists alongside the primary system or memory, subtly influencing or supporting it without being directly observable.

North America

A continent located in the Northern Hemisphere, largely bordered by the Atlantic, Pacific, and Arctic Oceans, including countries like Canada, the United States, and Mexico.