Question: A company operating under a continuous review system has an average demand of 60 units per week for the item it produces. The standard deviation

A company operating under a continuous review
A company operating under a continuous review system has an average demand of 60 units per week for the item it produces. The standard deviation in weekly demand is 15 units. The lead-time for the item is 5 weeks, and it costs the company $35 to process each order. The holding cost for each unit is $12 per year. The company operates 50 weeks per year. The firm also utilizes a 92% cycle service level. a. Use the information above. What is the economic order quantity (EOQ) for this item? b. Use the information above. What is the ROP using a Q system? c. Use the information above, what are the Total Annual Inventory Costs

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