Question: Amazon uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Demand (D) = 37,271 units/year

Amazon uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics.

  • Demand (D) = 37,271 units/year
  • Ordering cost (S) = $55.00/order
  • Holding cost (H) = $2.50/unit/year
  • Lead time (L) = 3 week(s)
  • Cycle-service level = 90%, z = 1.28
  • Demand is normally distributed, with a standard deviation of weekly demand of 103 units.
  • Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders.

What is the item's economic order quantity in units? (Enter your response rounded to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

Question 3 0.2 pts Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Demand (D) = 20,600 units/year . Ordering cost (S) =...

Q:

could you please answer these Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 2,000 rolls. The cost per roll is $625, and the annual holding cost is 28 percent of...

Q:

Wear A Mask (WAM) uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Demand (D) = 17,548 units/year Ordering cost (S) = $55.00/order...

Q:

i need this asap please! Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Refer to the standard normal table for z-values....

Q:

In a Q system, the demand rate for strawberry ice cream is normally distributed, with an average of 305 pints per week. The lead time is 8 weeks. The standard deviation of weekly demand is 16 pints....

Q:

co Could you please answer these In a Q system, the demand rate for strawberry ice cream is normally distributed, with an average of 305 pints per week. The lead time is 8 weeks. The standard...

Q:

Sam's Cat Hotel operates 52 weeks per year, 5 days per week, and uses a continuous review inventory system. It purchases kitty litter for $12.00 per bag. The following information is available about...

Q:

You are in charge of inventory control of a highly successful product retailed by your firm. Weekly demand for this item varies, with an average of 200 units and a standard deviation of 16 units. It...

Q:

Business Analytics Wear A Mask (WAM) uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Demand (D) = 20,600 units/year Ordering cost...

Q:

Data Table -X Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Refer to the standard normal table for z-values. Demand (D)...

Q:

If a check correctly written and paid by the bank for $ 581 is incorrectly recorded on the companys books for $ 518 , the appropriate treatment on the bank reconciliation would be to add $ 63 to the...

Q:

Outline regional strategies that bring about the socio economic growth and transformation within the various SADC countries.

Q:

1 Write True (T) or False (F) for each statement. Part a is done for you. 4

Q:

What is an example of constructive feedback? provide reference