Question: 11 Problem 7-25 (Algo) 10 points You manage inventory for your company and use a continuous review inventory system to control reordering items for stock.

11 Problem 7-25 (Algo) 10 points You manage

11 Problem 7-25 (Algo) 10 points You manage inventory for your company and use a continuous review inventory system to control reordering items for stock. Your company is open for business 300 days per year. One of your most important items experiences demand of 25 units per day, normally distributed with a standard deviation of 3 units per day. You experience a lead time on orders from your supplier of six days with a standard deviation of two days. The unit price, regardless of order size, is $5.25. Your ordering cost is $15. Your inventory carrying cost is 15 percent. You have established a service level policy of 97.5 percent on this item. Use Table 7-2 a. What is your optimal order quantity? (Round up your answer to the next whole number.) eBook Print References Optimal order quantity units b. What is your reorder point? (Round your answer to the nearest whole number.) Reorder point units c. How much safety stock do you carry? (Do not round intermediate calculations. Round up your answer to the next whole number.) Safety stock units Mc Graw HT 11 10 points b. What is your reorder point? (Round your answer to the nearest whole number.) Reorder point units eBook Print References c. How much safety stock do you carry? (Do not round intermediate calculations. Round up your answer to the next whole number.) Safely stock units d. What is your average inventory? (Round your answer to the nearest whole number.) Average inventory units

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