Question: ABC Inc. operates 360 days per year and uses a P-model to make inventory decisions about plastic pellets used in the injection molding equipment that

ABC Inc. operates 360 days per year and uses a P-model to make inventory decisions about plastic pellets used in the injection molding equipment that makes the cell phone cases. Daily demand has been forecast to be 600 units with a standard deviation of 300 units. The order interval is 30 days and order lead time is 19 days. ABC Inc. currently uses a safety stock level of 2500 units for plastic pellets. What percentage is the approximate service level for this inventory item? 99.99 66.94 89.44 88.31 Question 21 (4 points) ABC Inc. uses a Q-model to make inventory decisions about a replacement part for a power tool. Annual demand has been forecast to be 6400 units with a standard deviation of 10 units, while it costs $14 to hold one unit in inventory for a year and $700 to place an order. The order lead time is 25 days and a service level of 91 percent is desired. What is the economic order quantity? 213.809 600

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