Question: Given the service level you found in the previous problem, what K value would be appropriate to use to manage the inventory levels? Remember, a

Given the service level you found in the previous problem, what K value would be appropriate to use to manage the inventory levels?

Remember, a new logistics analyst indicates the cost of a back order is $70 for our Autographed Footballs. Other key data is below:

Football cost $200
Annual Demand 5000 units
Cost per Order $250
Cost to hold the item per year 40%
Economic order quantity 177
Lead Time 2 weeks
Standard Deviation of Forecasted Demand During Lead Time

20

Given the service level you found in the previousGiven the service level you found in the previous

A- 1.28

B- 1.75

C- 1.65

D- 0.84

kN[k] Conversion K th Carwira I awal Canwarcinn kN[k] Conversion K th Carwira I awal Canwarcinn

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