Business, 13.08.2021 01:00 texas101st78

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 14,000 6,000
Holding cost (% of item cost) 10% 10%
Setup or order cost $130.00 $10.00
Lead time 6 weeks 4 week
Safety stock 40 units 5 units
Item cost $5 $8
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?

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