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Business, 15.08.2020 18:01 nculberson6
Jill's Job shop buys two parts (Tegdiws and Widgets) for use in its production system from twodifferent suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used ata relatively constant rate and are ordered whenever the remaining quantity drops to the reorderlevel. Widgets are ordered from a supplier who stops by every three weeks. Data for both products are as follows:.
ITEM TEGDIW WIDGET
Annual demand 12,000 7,000
Holding cost % of item cost 20% 25%
Setup or order cost $130.00 $15.00
Lead time 4 weeks 4 weeks
Safety stock 60 unts 5 unts
Item Cost $5 $4
a) What is the inventory control system for Tegdiws? That is, what is the recorder quantity and what is the recorder point?
b) What is the inventory control system for Widgets?
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Jill's Job shop buys two parts (Tegdiws and Widgets) for use in its production system from twodiffer...
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