Sports Uniforms Ltd Has an Average Annual Demand for Red,large

question 71

Essay

Sports Uniforms Ltd has an average annual demand for red,large polo shirts of 30 000 units.The cost of placing an order is $75 and the cost of carrying one unit in inventory for one year is $30.
Required:
a.Use the economic-order-quantity (EOQ)model to determine the optimal order size.
b.Determine the reorder point assuming a lead time of 10 days and a work year of 250 days.
c.Determine the safety stock required to prevent stockouts assuming the maximum lead time is 20 days and the maximum daily demand is 125 units.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

---

Definitions:

Orexin

A type of neurotransmitter that plays an important role in regulating wakefulness, appetite, and arousal.

Digestive Track Hormone

Hormones produced by the gastrointestinal tract that regulate various aspects of digestion, including enzyme secretion and gut motility.

PYY

A hormone involved in regulating appetite and food intake, released by the gut in response to eating.

Ghrelin

A hormone produced in the stomach that stimulates hunger and regulates food intake.