During your onboarding, the operations manager shared the master production schedule $($MPS$)$ with you, along with the bill of materials $($BOM$).$ It$$s time to place an order for glass bottles.

What methods or combination of methods could you use to make this order?

You are deliberating on material requirement planning $($MRP$),$ Reorder point $($ROP$),$ Economic order quantity $($EOQ$),$ Economic transportation quantity $($ETQ$),$ and Just$-$in$-$time $($JIT$).$ Explain your choice.

From the MRP$,$ the annual demand for bottles is $200$ million units. The estimated ordering cost at $$500$ per order. The bottle value is $$5/$unit$.$ The inventory carrying cost is $25\%$ of bottle cost.

What is the EOQ?

The bottles are filled and sold in carboard boxes of six bottles each. The daily demand is $91,324$ boxes. The standard deviation of daily demand is $400$ boxes. The service level is $95\%,$ and the corresponding service level factor is $1\mathrm{.}65.$ The lead time is three months.

What is the level of the safety stock?

What could you do to improve the service level to $98\%?$