Jill's Job Shop buys two parts (Tegdiws and Widgets) for use inits production system from two different suppliers. The parts areneeded throughout the entire 52-week year. Tegdiws are used at arelatively constant rate and are ordered whenever the remainingquantity drops to the reorder level. Widgets are ordered from asupplier who stops by every five weeks. Data for both products areas follows:
| ITEM | TEGDIW | WIDGET |
| Annual demand | | 14,000 | | | 9,000 | |
| Holding cost (% of item cost) | | 20 | % | | 15 | % |
| Setup or order cost | $ | 110.00 | | $ | 15.00 | |
| Lead time | | 6 | weeks | | 2 | weeks |
| Safety stock | | 40 | units | | 6 | units |
| Item cost | $ | 5 | | $ | 4 | |
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a. What is the reorder quantity and reorderpoint for Tegdiws? (Round your answers to the nearest wholenumber.)
| |
| Optimal reorder quantity | | units |
| Reorder point | | units |
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b. What is the inventory control system forWidgets? (Round your answer to the nearest wholenumber.)
| Inventory control system for Widgets q = ?I (Inventory on hand) |
