Question: What is the average inventory level of calculated Q? What is the average inventory level of recommended Q? Average monthly demand = 425 units

What is the average inventory level of calculated Q?


What is the average inventory level of recommended Q?

Average monthly demand =

 

425 units

Holding rate =25%

Item cost per unit =

$130

Unfilled customer orders =

125 units

Ordering cost per order =

$1,250

Current open purchase order = 100 units

Lead time = 8 days

Current inventory level =

400 units

Items per box =

60 units

Safety Stock to cover =

12 days of demand

 


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