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. The ounce bottle of Super Algaecide SA is a high margin SKU, but it stocks out frequently. Ten SA botles come in each box, and Brenda 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 weekStore open weeksyearOrder cost $orderLeadtime weeksItem cost $boxStd deviation in weekly demand Inventoryholding cost percent per yearService level percent
Brenda wants to consider setting up a fixedperiod inventory system for the ounce bottle of Super Algaecide SA SKU. At the beginning of the current week, D J Kole, the materials manager, checked the inventory level and found boxes onhand. There were no scheduled receipts and boxes were on backorder.
What is the review period T Do not round intermediate calculations. Round your answer up to the nearest whole number.
weeks
What is stock replenishment level with safety stock M Do not round intermediate calculations. Round your answer to the nearest whole number.
boxes
How many units should be ordered? Do not round intermediate calculations. Round your answer to the nearest whole number.
box order size
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
