Based on statistical analysis for demand, the distribution of data for a particular product seems to...
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Based on statistical analysis for demand, the distribution of data for a particular product seems to be normal. The data shows a daily average of 25 units with a standard deviation of 5 units. Since this a product that is purchased, you should wait 5 days for delivery as soon as you place an order. The cost per unit of this product is $5. The supplier lead time has a standard deviation of 1 day. Every time you place an order to the supplier charge is $25, and the inventory holding cost is $8.00 per unit per year. The company operates 365 days per year. a. (6 points). What is the economic order quantity? b. (6 points). What is the safety stock at a service level of 90%? c. (6 points). What is the optimal reorder point assuming a service level of 90%? Based on statistical analysis for demand, the distribution of data for a particular product seems to be normal. The data shows a daily average of 25 units with a standard deviation of 5 units. Since this a product that is purchased, you should wait 5 days for delivery as soon as you place an order. The cost per unit of this product is $5. The supplier lead time has a standard deviation of 1 day. Every time you place an order to the supplier charge is $25, and the inventory holding cost is $8.00 per unit per year. The company operates 365 days per year. a. (6 points). What is the economic order quantity? b. (6 points). What is the safety stock at a service level of 90%? c. (6 points). What is the optimal reorder point assuming a service level of 90%?
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Answer rating: 100% (QA)
PAGE NO DATE quantily Ordea a Econoulc onderingcog cost per vnt 2XAnonal denand X 0nd... View the full answer
Related Book For
Elementary Statistics
ISBN: 978-0538733502
11th edition
Authors: Robert R. Johnson, Patricia J. Kuby
Posted Date:
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