B. Average time between orders is __ weeks. Your firm uses a continuous review system and operates

B. Average time between orders is __ weeks.

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Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUS has the following characteristics. Refer to the standard normal table for z-values. > Demand (D) = 18,600 units/year > Ordering cost (S) = $45.00/order > Holding cost (H) = $4.25/unit/year > Lead time (L) = 1 week(s) > Cycle-service level = 96% > Demand is normally distributed, with a standard deviation of weekly demand of 93 units. > Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders. The item's economic order quantity is units. (Enter your response rounded to the nearest whole number.) Your firm uses a continuous review system and operates 52 weeks per year. One of the SKUS has the following characteristics. Refer to the standard normal table for z-values. > Demand (D) = 18,600 units/year > Ordering cost (S) = $45.00/order > Holding cost (H) = $4.25/unit/year > Lead time (L) = 1 week(s) > Cycle-service level = 96% > Demand is normally distributed, with a standard deviation of weekly demand of 93 units. > Current on-hand inventory is 1,040 units, with no scheduled receipts and no backorders. The item's economic order quantity is units. (Enter your response rounded to the nearest whole number.)

Answer rating: 100% (QA)

Annual Demand D 18600 unit Holding Cost H 375 per unit per year Ord... View the full answer