Question: A distributor orders four products from a supplier. The fixed cost to place an order for one SKU is $23, and cost of each additional

A distributor orders four products from a supplier. The fixed cost to place an order for one SKU is $23, and cost of each additional SKU added to the order is $3. The carrying cost rate is 24 percent per year. Lead time is 1 week. Assume a 50-week year. The annual demand and unit cost of the four SKDs are:

Tire distributor wishes to use die coordinated periodic review model to plan ordering these SKUs. Calculate the multiples mjS and the optimal order interval Ol*.

SKU Annual demand Unit cost 450 2,000 200 3,000 $8 12.50 3.52 33.30 3

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