Question: 6 Problem 3. (25 points total) (Chapter 9) Bob's apple store utilizes a continuous review system. Current on had inventory is 295 bags of apples,

6 Problem 3. (25 points total) (Chapter 9) Bob's

6 Problem 3. (25 points total) (Chapter 9) Bob's apple store utilizes a continuous review system. Current on had inventory is 295 bags of apples, with no open orders or backorders. He buys apples year round, 52 weeks a year, 5 days a week. He buys apples for $10.20 a bag. The following information is available about these bags of apples: Demand = 80 bags/week Order cost = $48/order Annual Holding cost = 32 percent of the cost of a bag Desired cycle-service level = 87 percent Lead time = 2 weeks (10 working days) Standard deviation of weekly demand = 12 bags Go to two decimal points in all calculations. answer 3A. What is the annual holding cost (H) per unit expressed in dollars? (two decimal points) 4 points answer 3B. What is the annual demand (D) of bags of apples? (two decimal points) 4 points Hint: asking for annual demand, not weekly demand -ans. 3C. What is order cost (S) expressed in dollars? (per order) (two decimal points) 4 points answer 3D. What is the EOQ? (I want a number here, not a noun) (two decimal points) 4 points 3E. What would the average TBO (time between orders) (in weeks)? (two decimal points) 4 points answer (weeks) answer 3F. What is the safety stock? (I want a number here) (two decimal points) 4 points answer 3G. What should R (re-order point) be? (two decimal points) 1 points Use space below and next page to show work, guesses do not count

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