Your firm uses a continuous review system and operates 52 weeks per year. one of the skus has the following characteristics.
demand (d) = 20,600 units/year
ordering cost (s) = $55.00/order
holding cost (h) = $2.50/unit/year
lead time (l) = 1 week(s)
cycle-service level = 90%, z = 1.28
demand is normally distributed, with a standard deviation of weekly demand of 103 units.
current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders.
what is the reorder point for this item if the company wants to provide a 90% cycle-service level?
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Your firm uses a continuous review system and operates 52 weeks per year. one of the skus has the fo...
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