Question: 9 . [ 1 5 points ] A kitchen supply store stocks a popular coffee grinder. Annual demand is 6 , 0 0 0 units,

9.[15 points] A kitchen supply store stocks a popular coffee grinder. Annual demand is 6,000 units, the ordering cost is \(\$ 20.00\), and the inventory holding cost is \(15\%\) of the \(\$ 40.00\) purchase price.
a)[5 points] What is the economic order quantity?
b)[5 points] What is the total annual cost for this inventory item?
c)[5 points] If the average daily demand is 24 units with a standard deviation of 4 units per day, and the lead time is three days, what safety stock provides a \(90\%\) service level?
9 . [ 1 5 points ] A kitchen supply store stocks

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!