Pets World, a local retailer of pet supplies, faces demand for one of its SKUs at a constant rate of 34,000 units per year. It costs Pets World $15 to process an order to replenish stock and $6.00 per unit per year to carry the item in stock. Stock is received 2 working days after an order is placed. No backorder is allowed. Assume 365 working days a year. What should be the reorder point? (Enter your response rounded to the nearest whole number.)

 

2) Ernst Bicycle operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases hike helmets for $12.00 per unit. The following information is available about these helmets. Refer to the standard normal table attached at the bottom of this document. Average demand = 92 units/week Order cost = $57/order Annual holding cost = 29 percent of the unit cost Desired cycle-service level=89.97 percent Lead time = 1 week constant Standard deviation of weekly demand = 16 units Current on-hand inventory is 300 units, with no open orders or backorders. What is the amount of safety stock required to meet the desired service level? ____ bags (Enter your response rounded to the nearest whole number.)