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Huckaby Motor Services, Inc. rebuilds electrical motors, alternators, and transformers,




Question;Huckaby Motor Services, Inc. rebuilds electrical motors, alternators;and transformers, all using a certain type of copper wire. The firm's demand;for this wire is approximately normal, averaging 20 spools per week, with a;standard deviation of 6 spools per week. Cost per spool is $24, ordering costs;are $25 per order, inventory handling cost is $4.00 per spool per year.;Acquisition lead time is four weeks. The company works 50, 5-day weeks per year.;a. What is the optimal size of an order, if;minimization of inventory system cost is the objective?;b. What are the safety stock and reorder point if the desired service;level is 90%?


Paper#53720 | Written in 18-Jul-2015

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