Question: could you please help me ASAP Consider our EOQ model. Suppose annual demand is 10,000 , the unit cost of ordering (c0) is $400 per

Consider our EOQ model. Suppose annual demand is 10,000 , the unit cost of ordering (c0) is $400 per lot and the unit cost of holding (ch) is $200 per unit. Lead time is 1.5 days. Assume 250 working days in a year. What is your re-order level of inventories? 40 60 5 200 Consider again the EOQ model from the previous question. Suppose that there is uncertainty. You estimate that the standard deviation in lead time is 0.25 days. You estimate that the standard deviation in daily demand is 4 units. Your risk tolerance of a stock outage is 5 percent (So your risk factor is 1.645 - just like in our example from class). If there is ONLY uncertainty in lead time, your safety stock (s) and re-order levels (RO) are: s=16.5,andRO=76.5s=8.0,RO=68.0s=0.25,RO=60.25s=18.3,RO=78.3
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
