A golf specialty wholesaler operates 50 weeks per year. Management is trying to determine an inventory policy
Question:
Demand (D) = 2,000 units/year.
Demand is normally distributed
Standard deviation of weekly demand =3 units
Ordering cost $40/order
Annual holding cost (H) = $5/units
Desired cycle-service level = 90%
Lead time (L) = 4 weeks
a. If the company uses a periodic review system, what should P and T be? Round P to the nearest week
b. If the company uses a continuous review system, what should R be?
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Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
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