Question: Do the second question!!!! Use the first question an example Part 4 of 4 ney Homework: Ch... Question 4, Problem 29 HW Score: 58.11%, 2.32
Do the second question!!!!
Part 4 of 4 ney Homework: Ch... Question 4, Problem 29 HW Score: 58.11%, 2.32 of 4 points Points: 0 of 1 Save ges Your firm uses a periodic review system for all SKUs classified using ABC analysis, as 8 or C tems. Further, it uses a continuous review system for all SKUS classified as Altoms. The demand for a specific SKU, currently classified as an Alem, has been dropping You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year, the Rom's current characteristics are Demand (D) 14 560 unitsyear Ordering cost (S) $115 00/order Holding cost (H) $400/unit/year Lead time (L) 3 weeks Cycle-service level 99% ked: Demand is normally distributed, with a standard deviation of weekly demand of 80 units. scord a. Calculate the item's EOQ. : E0Q - 919 units (Enter your responde rounded to the nearest whole number) b. Use the EOQ to define the parameters of an appropriate continuous review and periodic review system for this item Refer to the standard normaltable when necessary Ion 1 Under a continuous review system, order 915) units whenever the inventory level drops to 2,767 units. (Enter your responses rounded to the nearest whole number) Under a periodic review nystem order up to 3.698 units every 3 weeks (Enter your responses rounded to the nearest whole number) c. Which system requires more safety stock and by how much? Select the correct choice below and ill in the answer box to complete your choice The periodic review system requires 917 more units of safety stock than the continuous review system. (Enter your response rounded to the nearest whole number) AGS E Homework: Ch... Question 4, Problem 29 HW Score: 58.11% 2.32 of 4 points Part 1 of 4 Points: 0 of 1 Save Your firm uses a periodic review system for all SKUs classified, using ABC analysis, as Bor Citems. Further, it uses a continuous review system for all SKUS dassified as Aitems. The demand for a specific SKU, currently classified as an Aitem, has been dropping. You have been asked to evaluate the impact of moving the item from continuous review to periodic review. Assume your firm operates 52 weeks per year, the item's current characteristics are: Demand (D) = 14,040 units/year Ordering cost (S)=5120.00/order Holding cost (H) = $4.00/unit/year Lead time (L) = 6 weeks Cydle-service level = 99% Demand is normally distributed with a standard deviation of weekly demand of 66 units a. Calculate the item's EOQ EOQ= = units. (Enter your response rounded to the nearest whole number) Use the first question an example

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