Question: B) The average time between orders is ___ weeks. (Enter your response rounded to two decimal places.) C) To provide a 96 percent cycle-service level,
B) The average time between orders is ___ weeks. (Enter your response rounded to two decimal places.)
C) To provide a 96 percent cycle-service level, the safety stock for this item is ___ units. (Enter your response rounded to the nearest whole number.)
D) To provide a 96 percent cycle-service level, the reorder point for this items is ____ units. (Enter your response rounded to the nearest whole number.)
E) For these policies, the annual cost of holding the cycle inventory is $ _____ (Enter your responses rounded to two decimal places) and annual cost of placing orders is $______. (Enter your response rounded to two decimal places.)
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)=18,600 units/year Ordering cost(S)=$45.00 /order Holding cost(H)=$4.25/ unit/year Lead time (L)=3 week (s) Cycle-service level =96% Demand is normally distributed, with a standard deviation of weekly demand of 93 units. Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders. The item's economic order quantity is units. (Enter your response rounded to the nearest whole number.)Step by Step Solution
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