Question: Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost Order cost Annual holding cost

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. PARAMETER Item cost Order cost Annual holding cost Annual demand Average weekly demand Standard deviation of weekly demand Lead time Service probability Optimal order quantity Reorder point VALUE $ 10.00 $ 207.00 per order Holding cost Ordering cost 24% of item cost 24,300 units units units 486 per week 20 units a. Determine the order quantity and reorder point. Note: Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number. 3 week 90% b. Determine the annual holding and order costs. Note: Do not round any intermediate calculations. Round your final answers to 2 decimal places.

is demanded 50 weeks a year. PARAMETER Item cost Order cost Annual

holding cost Annual demand Average weekly demand Standard deviation of weekly demand

Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. a. Determine the order quantity and reorder point. Note: Use Excel's NORMSINV() function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round " zn value to 2 decimal places and final answer to the nearest whole number. b. Determine the annual holding and order costs: Note: Do not round any intermediate calculations. Round your final answers to 2 decimal places. Siven the following information, formulate an inventory management system. The item is demanded 50 weeks a year. a. Determine the order quantity and reorder point. Note: Use Excel's NORMSINV 0 function to find the correct critical value for the given a-level. Do not round intermediate calculations. Round " z " value to 2 decimal places and final answer to the nearest whole number. b. Determine the annual holding and order costs. Note: Do not round any intermediate calculations. Round your final answers to 2 decimal places. b. Determine the annual holding and order costs. Note: Do not round any intermediate calculations. Round your final answers to 2 decimal places. c. Assume a price break of $60 per order was offered for purchase quantities of 2,100 or more units per order. If you took advantage of this price break, how much would you save annually? Note: Do not round any intermediate calculations (including number of setups per year). Round your final answer to 2 decimal places

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