A company begins a review of ordering policies [or its continuous review system by checking the current
Question:
Demand (D) =64 units/week (Assume 52 weeks per year)
Ordering and setup cost IS) = $50/order
Holding cost (11) = $13/unit/year
Lead time (L) = 2 weeks
Standard deviation of uvsk1y demand = 12 units
Cycle-service level = 88 percent
a. What Is the EOQ for this item?
b. What is the desired safety stock?
c. What is the reorder point?
d. What are the cost implications if the current policy for this Item is Q = 200 and R = 180?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Continuous review system a Economic order quantity b Safety stock When cycleservice level is 88 ...View the full answer
Answered By
Akshay Singla
as a qualified engineering expert i am able to offer you my extensive knowledge with real solutions in regards to planning and practices in this field. i am able to assist you from the beginning of your projects, quizzes, exams, reports, etc. i provide detailed and accurate solutions.
i have solved many difficult problems and their results are extremely good and satisfactory.
i am an expert who can provide assistance in task of all topics from basic level to advance research level. i am working as a part time lecturer at university level in renowned institute. i usually design the coursework in my specified topics. i have an experience of more than 5 years in research.
i have been awarded with the state awards in doing research in the fields of science and technology.
recently i have built the prototype of a plane which is carefully made after analyzing all the laws and principles involved in flying and its function.
1. bachelor of technology in mechanical engineering from indian institute of technology (iit)
2. award of excellence in completing course in autocad, engineering drawing, report writing, etc
48+ Reviews
56+ Question Solved
Related Book For 
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
Question Posted:
