Question: Average monthly demand = 680 units Holding rate =50% Item cost per unit = $300 Unfilled customer orders = 200 units Ordering cost per order

Average monthly demand = 680 units

Holding rate =50%

Item cost per unit =

$300

Unfilled customer orders =

200 units

Ordering cost per order =

$3,000

Current open purchase order = 500 units

Lead time = 6 days

Current inventory level =

250 units

Items per box =40 units

Safety Stock to cover =

10 days of demand.

Find the following :

1, Average inventory level of calculated Q?

2, Average inventory level of recommended Q?

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