Artists' Advantage sells painting supplies. The most basic brush for watercolors, the T100, sells 2,080 per year.
Question:
a. What is the optimal order quantity of brushes?
b. What is the optimal number of orders per year?
c. Compute the period that most closely matches this EOQ.
d. What value of z should be used if Al wishes to achieve a cycle-service level of 98 percent?
e. Using the period from part c, compute the target inventory level T. How much safety stock of brushes does this provide? How does this compare to the safety stock if a continuous review system is used?
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Related Book For
Operations and Supply Chain Management for the 21st Century
ISBN: 978-1111225292
1st edition
Authors: Ken Boyer, Rohit Verma
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