Question: Given the following information about on ongoing business, answer the question below. They operate Mon-Fri, with 15 holidays per year and a 3 week shut

Given the following information about on ongoing business, answer the question below. They operate Mon-Fri, with 15 holidays per year and a 3 week shut down in August for factory refurbishment activities. Average monthly demand = 730 units Number of items that fit in a box = 25 units Holding rate = 25% Lead time (in working days) = 15 days Item cost per unit = $40 Current inventory on-hand = 623 units Ordering cost per order = $800 Safety Stock to cover = 15 days of demand

question 1

How many units are needed to meet the SS goal, in a Q system? How much will it cost annually to hold the SS? What is the calculated EOQ Q value (lot size)? How many do you recommend as the Q value (lot size), given the data above? Specifically, why? What is the average inventory level of calculated Q? What is the average inventory level of recommended Q? What is the annual holding cost of calculated Q? What is the annual holding cost of recommended Q? What is the average inventory level of calculated Q and SS? What is the average inventory level of recommended Q and SS? What is the annual holding cost of the calculated Q and SS? What is the annual holding cost of the recommended Q and SS?

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