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.

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 8 days, but now the vendor promises a reduction of 25 percent in that time. Annual usage of soap is 4710 gallons. The car wash is open 360 days a year. Assume that daily usage is normal, and that it has a standard deviation of 4.0 gallons per day. The ordering cost is $35 and annual carrying cost is $5.0 a gallon. The revised price list (cost per gallon) is shown in the following table:

Order Size..........Unit Price

----------------------------------------------------

1--299 .................2

300--574..............1.7

575++................1.62

The store manager is considering to provide a service level of 0.55.

How much is the Quantity from EOQ? (Keep two decimal places)

Your answer

How much is the total annual inventory related costs (holding, ordering, and purchase costs) if the car wash order the quantity from EOQ model?

Your answer

How much is the total annual inventory related costs (holding, ordering, and purchase costs) if the bakery orders just enough to get the soap at the price of $1.7?

Your answer

How much is the total annual inventory related costs (holding, ordering, and purchase costs) if the car wash orders just enough to get the soap at the price of $1.62?

Your answer

What is the car wash's optimal order quantity, given this quantity discount information?

Your answer

How often (in "days") should the car wash order?

Your answer

How long (in days) is the lead time?

Your answer

What is the Z value for the desired service level?

Your answer

How much safety stock is needed to provide the desired service level?

Your answer

What is the ROP for the desired service level?