Question

Tune Football Helmets Company is considering changing its current inventory control system for football helmets. The information regarding the helmets is given below.
Demand ................... = 200 units/week
Lead time ................... = 2 weeks
Order cost .................. = $60/order
Unit cost .................. = $20
Carrying charge rate ............... = 0.075
Desired service level .............. = 95%
Standard deviation of weekly demand ...... = 40
Number of weeks per year ........... = 52
Compute T and M for a fixed period inventory system model with and without safety stock. Explain how this system would operate.


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  • CreatedSeptember 17, 2015
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