Business, 08.09.2021 21:20 neyssa83

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 three weeks. Data for both products are as follows: ITEM TEGDIW WIDGET
Annual demand 10,000 5,000
Holding cost (% of item cost) 20% 20%
Setup or order cost $150 $25
Lead time 4 weeks 1 weeks
Safety stock 55 units 5 units
Item cost $10 $2

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

Answers: 3

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Jill's Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two diffe...