Question: dont answer this i want a refund [20 points] An office suppliers distributor uses a continuous review inventory control system for one of its SKUs.
dont answer this i want a refund
[20 points] An office suppliers distributor uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. Order cost = $60/order Unit cost = $300 Holding cost rate = 40%/year Number of working days per year = 300 Demand = 900 chairs/year Standard deviation of daily demand = 2.4 chairs Average lead time = 4 days Required cycle-service level= 90% a. What is the economic order quantity? b. What should be the safety stock be to have a 90% service level? What should be the reorder point be to have a 90% service level? d. What is the total annual cost? Show all calculations to earn full credit. 7. [20 points] An office suppliers distributor uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. Order cost = $60/order Unit cost = $300 Holding cost rate = 40%/year Number of working days per year = 300 Demand = 900 chairs/year Standard deviation of daily demand = 2.4 chairs Average lead time = 4 days Required cycle-service level= 90% a. What is the economic order quantity? b. What should be the safety stock be to have a 90% service level? c. What should be the reorder point be to have a 90% service level? d. What is the total annual cost? Show all calculations to earn full credit. e. What is the safety stock if the required cycle-service level is 95%
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