Examlex

Solved

Clothes, Inc

question 97

Essay

Clothes, Inc., has an average annual demand for red, medium polo shirts of 25,000 units. The cost of placing an order is $80 and the cost of carrying one unit in inventory for one year is $25.
Required:
a.Use the economic-order-quantity 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:

Cultural Beliefs

The shared values, traditions, norms, and practices of a particular group that shape their behavior and views.

Prescribed Medication

Drugs that are legally dispensed by a medical professional or pharmacist based on a doctor's prescription.

Psychological Problem

Issues or disorders that affect a person's mind, impacting their emotions, behavior, and thoughts, often requiring professional intervention.

Immunodeficiency Syndrome

A condition where the body's immune system is impaired, reducing its ability to fight infections and diseases.

Related Questions