Sarahs Muffler Shop has one standard muffler that Fits a large variety of cars. Sarah wishes to

Sarah’s Muffler Shop has one standard muffler that Fits a large variety of cars. Sarah wishes to establish a reorder point system to manage inventory of this standard muffler. Use the following information to determine the best order size and the reorderpoint:

Transcribed Image Text:

Annual demand 3,500 mufflers Standard deviation of 6 mufflers per working day Ordenng cost $50 per order service probability 90% daily demand Item cost Annual holding cost $30 per muffler 25% of item value Lead time working days 2 working days 300 per year