The Wonderful Hair Salon buys lots of shampoos. Wonderful follows the exponential-smoothing forecasting method, and based on their forecast calculations, annual demand is 750 units. Wonderful normally pays $3.00 per shampoo bottle when ordering from its supplier. Each order that is placed with the supplier costs $18 to process. Wonderful's holding cost for shampoos is 15% of the cost of the shampoo bottle per year.
-Now suppose the supplier of workbenches guarantees KraftyCity that the lead time will be a constant 3 weeks, with no variability (i.e., standard deviation of lead time = 0) . Using the average weekly demand as 24, with a standard deviation of 8 workbenches and a service level of 95%, calculate the reorder point.
A) 95
B) 99
C) 102
D) 105
E) Do not have enough information to answer the question
Correct Answer:
Verified
Q31: The Wonderful Hair Salon buys lots of
Q32: The Wonderful Hair Salon buys lots of
Q33: The Wonderful Hair Salon buys lots of
Q34: The Wonderful Hair Salon buys lots of
Q35: The Wonderful Hair Salon buys lots of
Q37: The Cosmopolitan store wants to use a
Q38: The Cosmopolitan store wants to use a
Q39: The Cosmopolitan store wants to use a
Q40: The Cosmopolitan store wants to use a
Q41: The Cosmopolitan store wants to use a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents