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Business, 20.06.2021 15:50 kidzay

11.p Crew Soccer Shoes Company is considering a change in its current inventory control system for soccer shoes. The information regarding the shoes is as follows: Average demand 5 250 pairs/week Lead time 5 3 weeks Order cost 5 $75/order Unit cost 5 $21.50 Carrying charge rate 5 0.20 Desired service level 5 95 percent Standard deviation of weekly demand 5 40 Number of weeks per year 5 52 The company decides to use a fixed-order-quantity system. What is the economic order quantity? What should be the reorder point to have a 95 percent service level? Explain how the system will operate.

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