Assignment Content

It is your responsibility, as the new head of the automotive section of Nichols Department Store, to ensure that reorder quantities

for the various items have been correctly established. You decide to test one item and choose Michelin tires. A perpetual inventory

system has been used, so you examine this as well as other records and come up with the following data:

Because customers generally do not wait for tires but go elsewhere, you decide on a service probability of $98$ percent. Assume the

demand occurs $350$ days per year.

Provide your answer to the following Questions:

Determine the Economic Order Quanty

Compute the safety stock quantity

Compute the ReOrder point

If the lead time in now $4$ days. Determine the new safety stock.