Course Solutions Uncategorized Calculations 80 Points Must Show Computing Process 1 Manager Car Wash Received Revised Pri Q34269762

Calculations 80 Points Must Show Computing Process 1 Manager Car Wash Received Revised Pri Q34269762

June 27, 2024June 27, 2024| adminadmin| 0 Comment| 6:26 pm
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Calculations: (80 points, must show the computing process) 1. The manager of a car wash received a revised price list from the vendor who supplies soap, and a promise of a shorter lead time for deliveries. Formerly the lead time was four days, but now the vendor promises a reduction of 25 percent in that time. Annual usage of soap is 5,400 gallons. The car wash is open 300 days a year. Assume that daily usage is normal, and that it has a standard deviation of 2 gallons per day. The ordering cost is $30 and annual carrying cost is $2.5 a gallon. The revised price list (cost per gallon) is shown in the following table: (20 points) a. What order quantity is optimal? b. what ROP is appropriate if the acceptable risk of a stock-out is 2.5%? Range 1-299 300-899 900+ Unit price $2.00 $1.80 S1.62

Calculations:

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