Business, 28.02.2020 22:24 vdkgknsdg9996

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 two weeks. Data for both products are as follows: ITEM TEGDIW WIDGET Annual demand 7,000 10,000 Holding cost (% of item cost) 30 % 30 % Setup or order cost $ 190.00 $ 10.00 Lead time 7 weeks 2 weeks Safety stock 45 units 9 units Item cost $ 5 $ 6 a. What is the reorder quantity and reorder point for Tegdiws? (Round your answers to the nearest whole number.) Optimal reorder quantity units Reorder point units b. What is the inventory control system for Widgets? (Round your answer to the nearest whole number.) Inventory control system for Widgets q = − I (Inventory on hand)

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