Question: A manager must set up inventory ordering systems for two new production items: P 3 4 and P 3 5 . P 3 4 can
A manager must set up inventory ordering systems for two new production items: P and P P can be ordered at any time, but P can be ordered only once every weeks. The company operates weeks a year, and the weekly usage rates for both items are normally distributed. The manager has gathered the following information about the items.Item PItem PAverage weekly demand units unitsStandard deviation units per week units per weekUnit cost$$Annual holding costOrdering cost$$Lead time weeks weeksAcceptable stockout riska When should the manager reorder each item?b Compute the order quantity for Pc Compute the order quantity for P if units are on hand at the time the order is placed
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