Question: [26] Having Fun Party Supplies has implemented a new ordering system and plans to order Mickey Mouse themed birthday party sets using a continuous review

[26] Having Fun Party Supplies has implemented a

[26] Having Fun Party Supplies has implemented a new ordering system and plans to order Mickey Mouse themed birthday party sets using a continuous review inventory system. The fixed cost of ordering is expected to be $120 per order using the automated system; the historical data shows that demand for the product is 750 set per month with a standard deviation of 45 sets per month. The inventory holding rate is 24% per year, and each set costs $36, and lead time 0.5 months, the target fill rate during the lead time is 95%. Given this information calculate the following: a) (6) Economic order quantity b) (6) Safety stock c) (7) Reorder point d) (7) If you learn that the standard deviation of lead time is 0.15 months in addition to the uncertainty in demand, what is the new safety stock

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