Business, 14.06.2021 15:30 samirahscott
Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Refer to the standard normal table for z-values.
≻Demand (D) =19,600 units/year
≻Ordering cost (S) = $50.00/order
≻Holding cost (H) = 2.50/unit/year
≻Leadtime (L) =3 week(s)
≻Cycle-service level = 99%
≻Demand is normally distributed, with a standard deviation of weekly demand of 98 units.
≻Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders.
The item's economic order quantity is 885 units. (Enter your response rounded to the nearest whole number.)
The average time between orders is __ weeks. (Enter your response rounded to two decimal places.)
To provide a 92 percent cycle-service level, the safety stock for this item is __units. (Enter your response rounded to the nearest whole number.)
To provide a 92 percent cycle-service level, the reorder point for this item is __units. (Enter your response rounded to the nearest whole number.)
For these policies, the annual cost of holding the cycle inventory is $ __ (enter your response rounded to two decimalplaces)
Answers: 2
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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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