Question: First pic is the information needed to answer the second pics questions. pls show all working. 3a,b 1 Two Scenarios on the (Q,R) Model Scenario
First pic is the information needed to answer the second pics questions. pls show all working. 3a,b
1 Two Scenarios on the (Q,R) Model Scenario 1: A local paint store is using an inventory system to control its stock levels. For a popular eggshell indoor paint, historical data shows the distribution of monthly demand is approximately normal, with a mean of 39 cans and variance of 156 . Replenishment lead time for this paint is constant at 14 weeks. Each can of paint costs the store $6. The fixed cost of replenishment is $45 per order and holding costs are based on a 20% annual interest rate. 3. Consider the store operating at a 97 -percent service level (somcone has determined this to be optimal). What is the reorder level (reorder point) and the order-up-to level that the store should use under the EOQ? What is the average time (in weeks) in between placements of orders? You can round to the nearest whole number for simplicity

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