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Business, 17.08.2019 23:10 robertojr24ov5pel

Given this information: average weekly demand = 100 units. standard deviation = 10 units. lead time = 6 weeks. acceptable stockout risk = 2.5% ordering cost = $30 annual holding cost = 20% unit cost (purchase price) = $20 the company operates = 50 weeks a year. weekly usage rates are distributed normally. determine each of the following, assuming that lead time demand is distributed normally: a. order quantity (eoq). b. the safety stock needed to attain a 2.5 percent risk of stockout during lead time. c. the reorder point (rop) that will provide a risk of stockout of 2.5 percent during lead time.

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Given this information: average weekly demand = 100 units. standard deviation = 10 units. lead time...
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