Question: A retailer faces a stable demand for an item equal to 4,800 units per year. The fixed cost with the supplier is $500 per order.

A retailer faces a stable demand for an item equal to 4,800 units per year. The fixed cost with the supplier is $500 per order. The carrying cost to the retailer is $30/unit per year. Answer the following questions. For a each item, show your computations. 3. If the supplier lead-time is 1 week (assume 48 weeks per year) than the reorder point ROP should be: 4. The companys cycle stock is equivalent to how many weeks of supply (assume 48 weeks per year)? Cycle stock = _______________ Weeks of supply =

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