Question: Calculate the EOQ and ROP for 2019 based on the forecast value: Please show the calculations Demand in Terms of Product Orders for 2018 and

Calculate the EOQ and ROP for 2019 based on the forecast value: Please show the calculations Demand in Terms of Product Orders for 2018 and 2019

Info	2018	2019
Annual demand of fork sets	24817	29722
Average Weekly Demand	396	491
Std Dev of Weekly Demand	024	048

The company information for the forecast:

Year	Demand for Fork Sets	Forecast
2016	18025	15300
2017	21450	17753
2018	24817	21080
2019	29722	24443

Order cost $200 Holding cost per forkset per year $1.25 The company currently pays $7 for each set of forks z value 1.65 lead time = 7 weeks Std dev of lead time = 1.5 weeks Standard deviation of weekly demand = 148 Yearly demand = 24,443 The company uses a continuous review replenishment policy and has IT systems in place that allow constant monitoring of key information. Last year, the company used a ROP under this policy of 2,000 units for all sock styles and an order quantity (Q) of 5,000 units for all sock styles.

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