Question: A discount appliance store uses a fixed-order quantity inventory policy. One of the inventory items has the following characteristics: Demand = 10 units per wk

A discount appliance store uses a fixed-order quantity inventory policy. One of the inventory items has the following characteristics: Demand = 10 units per wk (assume 52 weeks per year) Ordering and set-up cost (S) = $45 per order Holding cost (H) = $12 per unit per year Lead time (L) = 3 weeks Standard deviation in weekly demand = 8 units Cycle service level = 70% a. What is the EOQ for this item? b. What is the desired safety stock? c. What is the reorder point?

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