Problems: abc analysis, eoq, reorder point, & safety stock

See attachment for Scenario…

Step 1: Conduct an ABC Analysis

Use Excel OM and the chart to conduct an ABC analysis to determine which category each of the parts falls into. Provide analysis and interpretation of the results.

In the Excel OM software, the default Percent of dollar volume for A items is 75%, however, it has been determined by your boss that he would like to see the data for the A items set at 80%.

Step 2: Calculate EOQ and Reorder Paint

Use Excel OM to calculate the EOQ and the reorder point for part number 1359 (check reorder point and graph when setting up the software).

The lead time to reorder parts is 30 days. The set up/ordering cost is $1,000 per order, and the holding cost is fixed at $125 per month (hint: be careful here). The factory runs 365 days per year, and the company wants to maintain a safety stock of 50.

Provide analysis and interpretation of the results.

Step 3: Calculate Safety Stock

In Step 2, you were given the safety stock of 50; however, this can be calculated for a more accurate number. Assume that the average daily demand for part number 1359 is 30 with a standard deviation of 2 parts per day. If the company wants to make sure that they do not stockout more than 5% of the time, then what level of safety stock should they hold?

As part of your analysis of these results, how does the safety stock calculated here compare to the safety stock requirement in step 2?

To calculate the safety stock, use Excel OM and the Safety Stock (Normal Distribution) spreadsheet. Input your data into column H of the model titled Model: Daily Demand and its standard deviation given.

Step 4: Submit Assignment

Be sure to create only one spreadsheet – each activity should be on a separate tab.

Submit your spreadsheet. Save your assignment using a naming convention that includes your first and last name and the activity number (or description). Do not add punctuation or special characters.

Do not forget to add a detailed analysis for each of your problems. Your analysis should be inserted on each spreadsheet.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more