Question: 3 . ) Sammy s wrenches is trying to create an inventory system for ordering it s # 1 0 ratchet. They sell 2 5
Sammys wrenches is trying to create an inventory system for ordering its # ratchet. They sell ratchets per week, with a standard deviation of assume weeks per year Ratchets cost them $ each. Ordering cost is $ per order. The holding cost rate is Lead time from their vendor is weeks. Please calculate the following:
a The EOQ amount for ratchets
b If Sammy wanted to maintain a service level, what ROP should be used?
c What is the total cost of the system you calculated above holding cost ordering cost and safety stock
d If Sammy vendors offered them a price discount to $ each if they order in a bulk of units, should they take it
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