Question: **DO NOT COPY AND PASTE ANOTHER CHEGG ANSWER. I WILL REPORT IF YOU DO.** 15.7. Monthly demand for an inventory item is a normally distributed

**DO NOT COPY AND PASTE ANOTHER CHEGG ANSWER. I WILL REPORT IF YOU DO.**

**DO NOT COPY AND PASTE ANOTHER CHEGG ANSWER. I**DO NOT COPY AND PASTE ANOTHER CHEGG ANSWER. I

15.7. Monthly demand for an inventory item is a normally distributed random variable with a mean of 20 units and a variance of 4. Demand follows this distribution every month, 12 months a year. When inventory reaches a predetermined level, an order for replenishment is placed. The fixed ordering cost is $60 per order. The items cost $4 per unit, and the annual inventory holding cost is 25 percent of the average value of the inventory. The replenishment lead time is exactly 4 months. Problem 15.7 Use your results for homework problem 15.7 to answer the following questions. Question 23 (2 points) = Listen What is the EOQ? Your Answer: Answer Question 24 (2 points) Listen What is the EOQ with the discount price? Your Answer: Answer Question 25 (2 points) = Listen What is the reorder point for a 90 percent service level? Your Answer: Answer Question 26 (2 points) A Listen At the reorder point for a 90 percent service level, how much safety stock is being carried? Your

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