Question: Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key
Brenda opened a pool and spa store in a lively shopping mall and finds business to be booming but she often stocks out of key items customers want. She decides to experiment with inventory control methods, such as using a continuous review fixedorder quantity andor periodic review fixedorder period system. The ounce bottle of Super Algaecide SA is a high margin SKU, but it stocks out frequently. Ten SA bottles come in each box, and she orders boxes from a vendor miles away. Brenda is busy running the store and seldom has time to review store inventory status and order the right quantity at the right time. She collected the following data:
Demand boxes per week Store open weeksyear
Order cost $order Leadtime weeks
Item cost $box Std deviation in weekly demand
Inventoryholding cost percent year Service level percentWhat is the average number of orders per year using the EOQ? Do not round intermediate calculations. Round your answer to two decimal places.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
To determine the average number of orders per year using the Economic Order Quantity EOQ model we ne... View full answer
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
