Question 3: Zara's head of inventory Amy has ordered 450 units of pink top in size...

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Question 3: Zara's head of inventory Amy has ordered 450 units of pink top in size S. The order cost is 8$, the annual holding cost is 2.3$, the pink top cost 13$, the annual holding cost rate is 18% and the demand infer it from previous questions (use the most accurate forecasting). It takes two months for the item to reach the warehouse. The branch manager Zach wants to know the inventory cost of this item that they currently have in stock. Amy would also like to know the optimal ordering policy for this item, the inventory cost of the optimal quantity, the reordering point. Zach would like to ensure that they do not ran out of this item by 4%. Now Amy requires a new reordering point. Finally, Zach want to know how long it takes to ran out of stock of this pink top. Question 3: Zara's head of inventory Amy has ordered 450 units of pink top in size S. The order cost is 8$, the annual holding cost is 2.3$, the pink top cost 13$, the annual holding cost rate is 18% and the demand infer it from previous questions (use the most accurate forecasting). It takes two months for the item to reach the warehouse. The branch manager Zach wants to know the inventory cost of this item that they currently have in stock. Amy would also like to know the optimal ordering policy for this item, the inventory cost of the optimal quantity, the reordering point. Zach would like to ensure that they do not ran out of this item by 4%. Now Amy requires a new reordering point. Finally, Zach want to know how long it takes to ran out of stock of this pink top.

Answer rating: 100% (QA)

To calculate the inventory cost of the 450 units of pink tops that Zara currently has in stock we need to consider both the purchase cost and the annu... View the full answer