A cricket specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy
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A cricket specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy for its bats, which have the following characteristics:
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Demand (D) = 350,000 units/year Standard deviation of weekly demand = 65 units Ordering cost = £35/order Annual holding cost (H) = £3/unit Desired cycle-service level = 95 percent Lead time (Z) = 6 weeks Should the company adopt a periodic review system or a continuous review system, and why?
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To determine whether the company should adopt a periodic review system or a continuous review system for its bats inventory we can analyze the charact...View the full answer
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Related Book For
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
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